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OPERATING SEGMENT DATA (Tables)
12 Months Ended
Dec. 31, 2015
OPERATING SEGMENT DATA  
Schedule of reportable operating segment information

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

 

 

 

 

 

 

 

 

 

 

 

 

 

    

2015

    

2014

    

2013

 

 

 

(in thousands)

 

REVENUES

 

 

 

 

 

 

 

 

 

 

Freight Transportation (ABF Freight)

 

$

1,918,450

 

$

1,930,990

 

$

1,761,716

 

Premium Logistics (Panther)

 

 

300,368

 

 

316,668

 

 

246,849

 

Transportation Management (ABF Logistics)

 

 

203,529

 

 

152,632

 

 

105,223

 

Emergency & Preventative Maintenance (FleetNet)

 

 

174,952

 

 

158,581

 

 

137,546

 

Household Goods Moving Services (ABF Moving)

 

 

119,252

 

 

94,628

 

 

82,169

 

Other and eliminations

 

 

(49,646)

 

 

(40,806)

 

 

(33,954)

 

Total consolidated revenues

 

$

2,666,905

 

$

2,612,693

 

$

2,299,549

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

Freight Transportation (ABF Freight)

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

 

$

1,174,357

 

$

1,121,177

 

$

1,075,259

 

Fuel, supplies, and expenses

 

 

307,348

 

 

360,850

 

 

332,433

 

Operating taxes and licenses

 

 

48,992

 

 

46,955

 

 

43,865

 

Insurance

 

 

28,847

 

 

24,960

 

 

21,823

 

Communications and utilities

 

 

16,129

 

 

15,398

 

 

15,027

 

Depreciation and amortization

 

 

74,765

 

 

68,752

 

 

72,971

 

Rents and purchased transportation

 

 

197,073

 

 

229,443

 

 

180,689

 

Gain on sale of property and equipment

 

 

(1,734)

 

 

(1,471)

 

 

(576)

 

Pension settlement expense(1)

 

 

2,404

 

 

5,309

 

 

1,831

 

Other

 

 

7,833

 

 

9,524

 

 

8,361

 

Total Freight Transportation (ABF Freight)

 

 

1,856,014

 

 

1,880,897

 

 

1,751,683

 

Premium Logistics (Panther)

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

 

220,994

 

 

235,006

 

 

188,561

 

Depreciation and amortization

 

 

11,436

 

 

11,362

 

 

10,516

 

Salaries, benefits, insurance, and other

 

 

57,140

 

 

54,660

 

 

40,816

 

Total Premium Logistics (Panther)

 

 

289,570

 

 

301,028

 

 

239,893

 

 

 

 

 

 

 

 

 

 

 

 

Transportation Management (ABF Logistics)

 

 

197,668

 

 

148,797

 

 

102,250

 

Emergency & Preventative Maintenance (FleetNet)

 

 

171,998

 

 

155,459

 

 

134,272

 

Household Goods Moving Services (ABF Moving)

 

 

114,416

 

 

91,449

 

 

80,319

 

Other and eliminations(1)

 

 

(38,257)

 

 

(34,176)

 

 

(27,938)

 

Total consolidated operating expenses(1)

 

$

2,591,409

 

$

2,543,454

 

$

2,280,479

 

OPERATING INCOME

 

 

 

 

 

 

 

 

 

 

Freight Transportation (ABF Freight)

 

$

62,436

 

$

50,093

 

$

10,033

 

Premium Logistics (Panther)

 

 

10,798

 

 

15,640

 

 

6,956

 

Transportation Management (ABF Logistics)

 

 

5,861

 

 

3,835

 

 

2,973

 

Emergency & Preventative Maintenance (FleetNet)

 

 

2,954

 

 

3,122

 

 

3,274

 

Household Goods Moving Services (ABF Moving)

 

 

4,836

 

 

3,179

 

 

1,850

 

Other and eliminations

 

 

(11,389)

 

 

(6,630)

 

 

(6,016)

 

Total consolidated operating income

 

$

75,496

 

$

69,239

 

$

19,070

 

OTHER INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

Interest and dividend income

 

$

1,284

 

$

851

 

$

681

 

Interest and other related financing costs

 

 

(4,400)

 

 

(3,190)

 

 

(4,183)

 

Other, net(2)

 

 

354

 

 

3,712

 

 

3,893

 

Total other income (costs)

 

 

(2,762)

 

 

1,373

 

 

391

 

INCOME BEFORE INCOME TAXES

 

$

72,734

 

$

70,612

 

$

19,461

 


(1)

Pension settlement expense totaled $3.2 million (pretax) on a consolidated basis for the year ended December 31, 2015, of which $2.4 million was reported by ABF Freight, $0.7 million was reported in Other and eliminations, and $0.1 million was reported by assetlight logistics segments. Pension settlement expense totaled $6.6 million (pretax) on a consolidated basis for the year ended December 31, 2014, of which $5.3 million was reported by ABF Freight, $1.1 million was reported in Other and eliminations, and $0.2 million was reported by assetlight logistics segments. Pension settlement expense totaled $2.1 million (pretax) for the year ended December 31, 2013, of which $1.8 million was reported by ABF Freight and $0.3 million was reported in Other and eliminations.

(2)

Includes changes in cash surrender value and proceeds of life insurance policies.

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

For the year ended December 31

 

 

    

 

2015

    

2014

    

2013

 

 

 

 

(in thousands)

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages, and benefits

 

 

$

1,295,197

 

$

1,231,783

 

$

1,166,185

 

Rents, purchased transportation, and other costs of services

 

 

 

780,428

 

 

759,252

 

 

598,604

 

Fuel, supplies, and expenses

 

 

 

300,370

 

 

353,385

 

 

321,887

 

Depreciation and amortization(1)

 

 

 

93,042

 

 

86,222

 

 

88,389

 

Other

 

 

 

122,372

 

 

112,812

 

 

105,414

 

 

 

 

$

2,591,409

 

$

2,543,454

 

$

2,280,479

 


(1)

Includes amortization of intangible assets.

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31

 

    

2015

    

2014

    

2013

 

 

(in thousands)

ASSETS

 

 

 

 

 

 

 

 

 

Freight Transportation (ABF Freight)

 

$

694,059

 

$

621,734

 

$

530,678

Premium Logistics (Panther)

 

 

216,075

 

 

218,135

 

 

216,747

Transportation Management (ABF Logistics)

 

 

75,023

 

 

37,571

 

 

27,836

Emergency & Preventative Maintenance (FleetNet)

 

 

21,958

 

 

23,532

 

 

21,517

Household Goods Moving Services (ABF Moving)

 

 

28,547

 

 

22,276

 

 

20,941

Other and eliminations(1)

 

 

227,247

 

 

204,374

 

 

199,607

 

 

$

1,262,909

 

$

1,127,622

 

$

1,017,326

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31

 

    

2015

    

2014

    

2013

 

 

(in thousands)

CAPITAL EXPENDITURES, GROSS

 

 

 

 

 

 

 

 

 

Freight Transportation (ABF Freight)(2)

 

$

122,542

 

$

78,766

 

$

11,091

Premium Logistics (Panther)

 

 

23,275

 

 

6,414

 

 

3,854

Transportation Management (ABF Logistics)

 

 

241

 

 

158

 

 

286

Emergency & Preventative Maintenance (FleetNet)

 

 

1,007

 

 

550

 

 

1,314

Household Goods Moving Services (ABF Moving)

 

 

703

 

 

424

 

 

493

Other and eliminations

 

 

11,249

 

 

4,496

 

 

9,367

 

 

$

159,017

 

$

90,808

 

$

26,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended December 31

 

    

2015

    

2014

    

2013

 

 

(in thousands)

DEPRECIATION AND AMORTIZATION EXPENSE(1)

 

 

 

 

 

 

 

 

 

Freight Transportation (ABF Freight)

 

$

74,765

 

$

68,752

 

$

72,971

Premium Logistics (Panther)(3)

 

 

11,436

 

 

11,362

 

 

10,516

Transportation Management (ABF Logistics)(4)

 

 

1,138

 

 

1,006

 

 

640

Emergency & Preventative Maintenance (FleetNet)(5)

 

 

1,119

 

 

961

 

 

540

Household Goods Moving Services (ABF Moving)

 

 

1,186

 

 

1,384

 

 

1,247

Other and eliminations

 

 

3,398

 

 

2,757

 

 

2,475

 

 

$

93,042

 

$

86,222

 

$

88,389

(1)

Other and eliminations includes certain assets held by the parent holding company for strategic reasons, including unrestricted and restricted cash, cash equivalents, and short‑term investments, as well as certain assets held for the benefit of multiple segments, including land and structures of the Company’s corporate headquarters and 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.

(2)

Includes assets acquired through notes payable and capital leases of $80.6 million in 2015, $55.3 million in 2014, and less than $0.1 million in 2013.

(3)

Includes amortization of intangibles of $3.6 million, $4.2 million, and $4.2 million in 2015, 2014, and 2013, respectively.

(4)

Includes amortization of intangibles which totaled $0.1 million in 2015.

(5)

Includes amortization of intangibles which totaled $0.3 million and $0.2 million in 2015 and 2014, respectively.