Business Segments

12 Months Ended

Dec. 31, 2017

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, logistics and dedicated 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 for our business segments for the years ended December 31, 2017, 2016 and 2015 (in thousands):

	Twelve Months									Twelve Months
	Ended December  31, 2017									Ended December  31, 2016
					Inter-			Hub						Inter-			Hub
					Segment			Group						Segment			Group
	Hub		Mode		Elims			Total		Hub		Mode		Elims			Total
Revenue	$	3,107,394	$	1,029,160	$	(101,657	)	$	4,034,897	$	2,734,541	$	948,735	$	(110,486	)	$	3,572,790
Transportation costs		2,771,291		907,746		(101,657	)		3,577,380		2,404,946		823,545		(110,486	)		3,118,005
Gross margin		336,103		121,414		-			457,517		329,595		125,190		-			454,785
Costs and expenses:
Salaries and benefits		174,573		13,816		-			188,389		165,136		15,323		-			180,459
Agent fees and commissions		58		74,024		-			74,082		66		72,830		-			72,896
General and administrative		77,085		8,097		-			85,182		60,811		7,819		-			68,630
Depreciation and amortization		12,139		1,174		-			13,313		7,698		1,268		-			8,966
Total costs and expenses		263,855		97,111		-			360,966		233,711		97,240		-			330,951
Operating income	$	72,248	$	24,303	$	-		$	96,551		95,884		27,950		-			123,834
Capital expenditures	$	73,772	$	769	$	-		$	74,541	$	106,316	$	1,093	$	-		$	107,409

	Twelve Months
	Ended December  31, 2015
					Inter-			Hub
					Segment			Group
	Hub		Mode		Elims			Total
Revenue	$	2,679,318	$	928,661	$	(82,384	)	$	3,525,595
Transportation costs		2,385,197		810,087		(82,384	)		3,112,900
Gross margin		294,121		118,574		-			412,695
Costs and expenses:
Salaries and benefits		143,993		14,945		-			158,938
Agent fees and commissions		56		68,668		-			68,724
General and administrative		53,023		6,992		-			60,015
Depreciation and amortization		6,688		1,300		-			7,988
Total costs and expenses		203,760		91,905		-			295,665
Operating income	$	90,361	$	26,669	$	-		$	117,030
Capital expenditures	$	79,860	$	3,182	$	-		$	83,042

	As of December 31, 2017									As of December 31, 2016
					Inter-			Hub						Inter-			Hub
					Segment			Group						Segment			Group
	Hub		Mode		Elims			Total		Hub		Mode		Elims			Total
Total assets	$	1,470,792	$	210,088	$	(9,939	)	$	1,670,941	$	1,178,110	$	191,374	$	(9,225	)	$	1,360,259
Goodwill	$	319,272	$	29,389	$	-			348,661	$	232,987	$	29,389	$	-			262,376

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

	Twelve Months									Twelve Months
	Ended December  31, 2017									Ended December  31, 2016
					Inter-			Hub						Inter-			Hub
					Segment			Group						Segment			Group
	Hub		Mode		Elims			Total		Hub		Mode		Elims			Total
Intermodal	$	1,852,884	$	496,733	$	(56,587	)	$	2,293,030	$	1,785,865	$	486,758	$	(81,556	)	$	2,191,067
Truck brokerage		483,955		340,330		(1,990	)		822,295		391,901		308,055		(1,456	)		698,500
Logistics		655,543		192,097		(43,061	)		804,579		556,775		153,922		(27,474	)		683,223
Dedicated		115,012		-		(19	)		114,993		-		-		-			-
Total revenue	$	3,107,394	$	1,029,160	$	(101,657	)	$	4,034,897	$	2,734,541	$	948,735	$	(110,486	)	$	3,572,790

	Twelve Months
	Ended December  31, 2015
					Inter-			Hub
					Segment			Group
	Hub		Mode		Elims			Total
Intermodal	$	1,792,046	$	483,910	$	(78,688	)	$	2,197,268
Truck brokerage		355,402		314,498		(1,908	)		667,992
Logistics		531,870		130,253		(1,788	)		660,335
Total revenue	$	2,679,318	$	928,661	$	(82,384	)	$	3,525,595