Business Segments

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Business Segments

NOTE 5. Business Segments

We report two distinct business segments. The first segment is Mode, which includes the Mode LLC business we acquired on April 1, 2011. The second segment is Hub, which is all business other than Mode.

Hub offers comprehensive intermodal, truck brokerage and logistics services. Our employees operate the freight through a network of operating centers located in the United States, Canada and Mexico. Each operating center is strategically located in a market with a significant concentration of shipping customers and one or more railheads. Hub has full time employees located throughout the United States, Canada and Mexico.

Mode LLC markets and operates its freight transportation services, consisting of intermodal, truck brokerage and logistics, primarily through agents who enter into contractual arrangements with Mode LLC.

The following is a summary of operating results, which includes the results of operations of the Mode segment for the years ended December 31, 2016, 2015 and 2014, and certain other financial data for our business segments (in thousands):

	Twelve Months									Twelve Months
	Ended December  31, 2016									Ended December  31, 2015
					Inter-			Hub						Inter-			Hub
					Segment			Group						Segment			Group
	Hub		Mode		Elims			Total		Hub		Mode		Elims			Total
Revenue	$	2,734,541	$	948,735	$	(110,486	)	$	3,572,790	$	2,679,318	$	928,661	$	(82,384	)	$	3,525,595
Transportation costs		2,404,946		823,545		(110,486	)		3,118,005		2,385,197		810,087		(82,384	)		3,112,900
Gross margin		329,595		125,190		-			454,785		294,121		118,574		-			412,695
Costs and expenses:
Salaries and benefits		165,136		15,323		-			180,459		143,993		14,945		-			158,938
Agent fees and commissions		66		72,830		-			72,896		56		68,668		-			68,724
General and administrative		60,811		7,819		-			68,630		53,023		6,992		-			60,015
Depreciation and amortization		7,698		1,268		-			8,966		6,688		1,300		-			7,988
Total costs and expenses		233,711		97,240		-			330,951		203,760		91,905		-			295,665
Operating income	$	95,884	$	27,950	$	-		$	123,834		90,361		26,669		-			117,030
Capital expenditures	$	106,316	$	1,093	$	-		$	107,409	$	79,860	$	3,182	$	-		$	83,042

	Twelve Months
	Ended December  31, 2014
					Inter-			Hub
					Segment			Group
	Hub		Mode		Elims			Total
Revenue	$	2,722,799	$	931,131	$	(82,804	)	$	3,571,126
Transportation costs		2,461,144		822,351		(82,804	)		3,200,691
Gross margin		261,655		108,780		-			370,435
Costs and expenses:
Salaries and benefits		122,097		14,383		-			136,480
Agent fees and commissions		45		61,996		-			62,041
General and administrative		51,108		6,906		-			58,014
Depreciation and amortization		6,238		1,561		-			7,799
Driver settelments and related costs		10,343		-		-			10,343
Impairment of software		11,881		-		-			11,881
Total costs and expenses		201,712		84,846		-			286,558
Operating income	$	59,943	$	23,934	$	-		$	83,877
Capital expenditures	$	118,640	$	531	$	-		$	119,171

	As of December 31, 2016									As of December 31, 2015
					Inter-			Hub						Inter-			Hub
					Segment			Group						Segment			Group
	Hub		Mode		Elims			Total		Hub		Mode		Elims			Total
Total assets	$	1,178,110	$	191,374	$	(9,225	)	$	1,360,259	$	1,127,042	$	181,514	$	(7,410	)	$	1,301,146
Goodwill		232,987		29,389		-			262,376		233,205		29,389		-			262,594

The following tables summarize our revenue by segment and business line (in thousands):

	Twelve Months									Twelve Months
	Ended December  31, 2016									Ended December  31, 2015
					Inter-			Hub						Inter-			Hub
					Segment			Group						Segment			Group
	Hub		Mode		Elims			Total		Hub		Mode		Elims			Total
Intermodal	$	1,785,865	$	486,758	$	(81,556	)	$	2,191,067	$	1,792,046	$	483,910	$	(78,688	)	$	2,197,268
Truck brokerage		391,901		308,055		(1,456	)		698,500		355,402		314,498		(1,908	)		667,992
Logistics		556,775		153,922		(27,474	)		683,223		531,870		130,253		(1,788	)		660,335
Total revenue	$	2,734,541	$	948,735	$	(110,486	)	$	3,572,790	$	2,679,318	$	928,661	$	(82,384	)	$	3,525,595

	Twelve Months
	Ended December  31, 2014
					Inter-			Hub
					Segment			Group
	Hub		Mode		Elims			Total
Intermodal	$	1,815,842	$	466,859	$	(79,406	)	$	2,203,295
Truck brokerage		338,590		335,587		(946	)		673,231
Logistics		568,367		128,685		(2,452	)		694,600
Total revenue	$	2,722,799	$	931,131	$	(82,804	)	$	3,571,126