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OPERATING SEGMENT DATA (Tables)
12 Months Ended
Dec. 31, 2020
OPERATING SEGMENT DATA  
Schedule of revenues from contracts with customers and intersegment revenues

    

2020

    

2019

    

2018

 

(in thousands)

 

Revenues from customers

Asset-Based

$

1,998,549

$

2,077,287

$

2,131,571

ArcBest

 

770,560

 

731,366

 

773,968

FleetNet

 

166,654

 

175,055

 

182,861

Other

 

4,400

 

4,602

 

5,388

Total consolidated revenues

$

2,940,163

$

2,988,310

$

3,093,788

Intersegment revenues

Asset-Based

$

93,482

$

67,392

$

44,014

ArcBest

8,555

7,026

7,155

FleetNet

38,395

36,683

12,265

Other and eliminations

(140,432)

(111,101)

(63,434)

Total intersegment revenues

$

$

$

Total segment revenues

Asset-Based

$

2,092,031

2,144,679

2,175,585

ArcBest

779,115

738,392

781,123

FleetNet

205,049

211,738

195,126

Other and eliminations

(136,032)

(106,499)

(58,046)

Total consolidated revenues

$

2,940,163

$

2,988,310

$

3,093,788

Schedule of reportable operating segment information

The following table reflects reportable operating segment information for the years ended December 31:

    

2020

    

2019

    

2018

 

(in thousands)

 

REVENUES

Asset-Based

$

2,092,031

$

2,144,679

$

2,175,585

ArcBest

 

779,115

 

738,392

 

781,123

FleetNet

 

205,049

 

211,738

 

195,126

Other and eliminations

 

(136,032)

 

(106,499)

 

(58,046)

Total consolidated revenues

$

2,940,163

$

2,988,310

$

3,093,788

OPERATING EXPENSES

Asset-Based

Salaries, wages, and benefits

$

1,095,694

$

1,148,761

$

1,128,030

Fuel, supplies, and expenses

 

209,095

 

257,133

 

255,655

Operating taxes and licenses

 

49,300

 

50,209

 

48,792

Insurance

 

33,568

 

32,516

 

32,887

Communications and utilities

 

17,916

 

18,614

 

16,983

Depreciation and amortization

 

94,326

 

89,798

 

85,951

Rents and purchased transportation

 

250,159

 

221,479

 

242,247

Shared services

217,258

212,773

215,302

Multiemployer pension fund withdrawal liability charge(1)

37,922

Gain on sale of property and equipment

 

(3,309)

 

(5,892)

 

(410)

Innovative technology costs(2)

22,458

13,739

3,810

Other

 

6,701

 

3,488

 

4,554

Total Asset-Based

 

1,993,166

 

2,042,618

 

2,071,723

ArcBest

Purchased transportation

 

649,933

 

606,113

 

631,501

Supplies and expenses

 

9,627

 

10,789

 

13,329

Depreciation and amortization

 

9,714

 

11,344

 

13,750

Shared services

90,983

93,961

91,266

Other

9,203

 

9,860

 

9,143

Asset impairment(3)

26,514

Restructuring costs(4)

 

 

491

Gain on sale of subsidiaries(5)

(1,945)

Total ArcBest

 

769,460

 

758,581

 

757,535

FleetNet

 

201,682

 

206,932

 

190,741

Other and eliminations

 

(122,423)

 

(83,591)

 

(35,309)

Total consolidated operating expenses

$

2,841,885

$

2,924,540

$

2,984,690

(1)ABF Freight recorded a one-time charge in 2018 for the multiemployer pension fund withdrawal liability resulting from the transition agreement it entered into with the New England Pension Fund (see Note I).
(2)Represents costs associated with the freight handling pilot test program at ABF Freight.
(3)The ArcBest segment recognized a noncash impairment charge in 2019 related to a portion of the goodwill, customer relationship intangible assets, and revenue equipment associated with the acquisition of truckload and dedicated businesses within the segment (see Note D).
(4)Restructuring costs relate to the realignment of the Company’s corporate structure (see Note N).
(5)Gain recognized in 2018 relates to the sale of the ArcBest segment’s military moving business in December 2017.

For the Year Ended December 31

 

2020

    

2019

    

2018

 

 

(in thousands)

 

OPERATING INCOME (LOSS)

Asset-Based

$

98,865

$

102,061

$

103,862

ArcBest

 

9,655

 

(20,189)

 

23,588

FleetNet

 

3,367

 

4,806

 

4,385

Other and eliminations

 

(13,609)

 

(22,908)

 

(22,737)

Total consolidated operating income

$

98,278

$

63,770

$

109,098

OTHER INCOME (COSTS)

Interest and dividend income

$

3,616

$

6,453

$

3,914

Interest and other related financing costs

 

(11,697)

 

(11,467)

 

(9,468)

Other, net(1)

 

2,299

 

(7,285)

 

(19,158)

Total other costs

 

(5,782)

 

(12,299)

 

(24,712)

INCOME BEFORE INCOME TAXES

$

92,496

$

51,471

$

84,386

(1)Includes the components of net periodic benefit cost other than service cost, including pension settlement and termination expense (see Note I), and proceeds and changes in cash surrender value of life insurance policies.

The following table reflects information about revenues from customers and intersegment revenues:

    

2020

    

2019

    

2018

 

(in thousands)

 

Revenues from customers

Asset-Based

$

1,998,549

$

2,077,287

$

2,131,571

ArcBest

 

770,560

 

731,366

 

773,968

FleetNet

 

166,654

 

175,055

 

182,861

Other

 

4,400

 

4,602

 

5,388

Total consolidated revenues

$

2,940,163

$

2,988,310

$

3,093,788

Intersegment revenues

Asset-Based

$

93,482

$

67,392

$

44,014

ArcBest

8,555

7,026

7,155

FleetNet

38,395

36,683

12,265

Other and eliminations

(140,432)

(111,101)

(63,434)

Total intersegment revenues

$

$

$

Total segment revenues

Asset-Based

$

2,092,031

2,144,679

2,175,585

ArcBest

779,115

738,392

781,123

FleetNet

205,049

211,738

195,126

Other and eliminations

(136,032)

(106,499)

(58,046)

Total consolidated revenues

$

2,940,163

$

2,988,310

$

3,093,788

The following table provides capital expenditure and depreciation and amortization information by reportable operating segment:

For the year ended December 31

 

2020

    

2019

    

2018

(in thousands)

CAPITAL EXPENDITURES, GROSS

Asset-Based(1)

$

85,135

$

122,437

$

116,505

ArcBest

1,258

3,909

5,174

FleetNet

 

675

 

590

 

1,365

Other and eliminations(2)(3)

 

17,983

 

33,748

 

14,631

$

105,051

$

160,684

$

137,675

For the year ended December 31

2020

    

2019

    

2018

(in thousands)

DEPRECIATION AND AMORTIZATION EXPENSE(2)

Asset-Based

$

94,326

$

89,798

$

85,951

ArcBest(4)

9,714

11,344

13,750

FleetNet(5)

 

1,622

 

1,341

 

1,140

Other and eliminations(2)

 

12,729

 

9,983

 

7,794

$

118,391

$

112,466

$

108,635

(1)Includes assets acquired through notes payable of $61.8 million, $67.6 million, and $86.8 million in 2020, 2019, and 2018, respectively.
(2)Other and eliminations includes certain assets held for the benefit of multiple segments, including information systems equipment. Depreciation and amortization associated with these assets is allocated to the reporting segments. Depreciation and amortization expense includes amortization of internally developed capitalized software which has not been included in gross capital expenditures presented in the table.
(3)Includes assets acquired through notes payable of $23.2 million and $6.9 million in 2019 and 2018, respectively.
(4)Includes amortization of intangibles of $3.7 million, $4.2 million, and $4.3 million in 2020, 2019, and 2018, respectively.
(5)Includes amortization of intangibles which totaled $0.2 million in 2020, 2019, and 2018.

A table of assets by reportable operating segment has not been presented as segment assets are not included in reports regularly provided to management nor does management consider segment assets for assessing segment operating performance or allocating resources.

The following table presents operating expenses by category on a consolidated basis:

 

For the year ended December 31

 

    

2020

    

2019

    

2018

 

(in thousands)

OPERATING EXPENSES

Salaries, wages, and benefits

$

1,368,588

$

1,408,409

$

1,398,348

Rents, purchased transportation, and other costs of services

 

974,835

 

934,958

 

989,006

Fuel, supplies, and expenses

 

250,221

 

316,047

 

325,126

Depreciation and amortization(1)

 

118,391

 

112,466

 

108,635

Other

 

129,850

 

126,146

 

123,998

Asset impairment(2)

26,514

Multiemployer pension fund withdrawal liability charge(3)

37,922

Restructuring costs(4)

 

 

 

1,655

$

2,841,885

$

2,924,540

$

2,984,690

(1)Includes amortization of intangible assets.
(2)The ArcBest segment recognized a noncash impairment charge in 2019 related to a portion of the goodwill, customer relationship intangible assets, and revenue equipment associated with the acquisition of truckload and dedicated businesses within the segment (see Note D).
(3)ABF Freight recorded a one-time charge in 2018 for the multiemployer pension fund withdrawal liability resulting from the transition agreement it entered into with the New England Pension Fund (see Note I).
(4)Restructuring costs relate to the realignment of the Company’s corporate structure (see Note N).