OPERATING SEGMENT DATA (Tables)

6 Months Ended

Jun. 30, 2017

OPERATING SEGMENT DATA

Schedule of reportable operating segment information

	Three Months Ended				Six Months Ended
	June 30				June 30
	2017		2016(1)		2017		2016(1)
	(in thousands)
REVENUES
Asset-Based	$	514,537	$	486,251	$	978,893	$	925,314
ArcBest(2)		175,929		154,347		328,805		296,744
FleetNet		36,501		41,780		76,739		85,344
Other and eliminations		(6,599)		(5,751)		(12,981)		(9,320)
Total consolidated revenues	$	720,368	$	676,627	$	1,371,456	$	1,298,082
OPERATING EXPENSES
Asset-Based
Salaries, wages, and benefits	$	314,252	$	303,214	$	619,095	$	599,376
Fuel, supplies, and expenses		75,878		72,279		151,310		138,968
Operating taxes and licenses		12,252		12,154		24,121		24,134
Insurance		7,540		7,660		14,649		14,126
Communications and utilities		4,535		4,279		9,357		8,651
Depreciation and amortization		21,324		20,911		42,307		41,303
Rents and purchased transportation		53,346		47,800		99,954		87,496
(Gain) loss on sale of property and equipment		25		(2,197)		(592)		(2,369)
Pension settlement expense(3)		533		424		1,934		1,101
Other		2,658		2,355		4,449		4,155
Restructuring costs(4)		33		—		173		—
Total Asset-Based		492,376		468,879		966,757		916,941
ArcBest(2)
Purchased transportation		139,354		121,502		261,273		233,333
Salaries, wages, and benefits		16,762		17,668		33,298		36,249
Supplies and expenses		6,769		4,641		12,055		9,059
Depreciation and amortization		3,337		3,475		6,703		6,940
Other		3,828		4,888		7,886		8,982
Restructuring costs(4)		65		—		875		—
Total ArcBest		170,115		152,174		322,090		294,563
FleetNet		35,771		41,184		75,035		83,764
Other and eliminations(4)		(2,628)		(2,264)		(4,907)		(4,575)
Total consolidated operating expenses(3)	$	695,634	$	659,973	$	1,358,975	$	1,290,693

⁽¹⁾ Certain restatements have been made to the prior year’s operating segment data to conform to the current year presentation, reflecting the realignment of the Company’s corporate structure as previously discussed in this Note.

⁽²⁾ The 2017 period includes the operations of LDS, which was acquired in September 2016.

⁽³⁾ For the three months ended June 30, 2017 and 2016, pre-tax pension settlement expense on a consolidated basis totaled $0.7 million and $0.6 million, respectively, of which $0.5 million and $0.4 million, respectively, was reported by the Asset-Based segment. For the six months ended June 30, 2017 and 2016, pre-tax pension settlement expense totaled $2.7 million and $1.5 million, respectively, of which $1.9 million and $1.1 million, respectively, was reported by the Asset-Based segment.

⁽⁴⁾ Restructuring costs relate to the realignment of the Company’s corporate structure (see Note K). Other and eliminations includes $0.3 million and $0.9 million of restructuring costs for the three and six months ended June 30, 2017, respectively.

	Three Months Ended				Six Months Ended
	June 30				June 30
	2017		2016(1)		2017		2016(1)
	(in thousands)
OPERATING INCOME
Asset-Based	$	22,161	$	17,372	$	12,136	$	8,373
ArcBest(2)		5,814		2,173		6,715		2,181
FleetNet		730		596		1,704		1,580
Other and eliminations		(3,971)		(3,487)		(8,074)		(4,745)
Total consolidated operating income	$	24,734	$	16,654	$	12,481	$	7,389
OTHER INCOME (COSTS)
Interest and dividend income	$	285	$	387	$	559	$	788
Interest and other related financing costs		(1,389)		(1,231)		(2,704)		(2,478)
Other, net(3)		505		571		1,152		937
Total other costs		(599)		(273)		(993)		(753)
INCOME BEFORE INCOME TAXES	$	24,135	$	16,381	$	11,488	$	6,636

⁽¹⁾ Certain restatements have been made to the prior year’s operating segment data to conform to the current year presentation, reflecting the realignment of the Company’s corporate structure as previously discussed in this Note.

⁽²⁾ The 2017 periods include the operations of LDS, which was acquired in September 2016.

⁽³⁾ Includes proceeds and changes in cash surrender value of life insurance policies.

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

	Three Months Ended				Six Months Ended
	June 30				June 30
	2017		2016(1)		2017		2016(1)
	(in thousands)
OPERATING EXPENSES
Salaries, wages, and benefits	$	350,187	$	336,670	$	685,016	$	667,807
Rents, purchased transportation, and other costs of services		216,237		200,948		416,108		385,647
Fuel, supplies, and expenses		68,451		69,361		141,113		132,496
Depreciation and amortization(2)		25,209		25,748		50,603		50,899
Other		35,187		27,246		64,141		53,844
Restructuring(3)		363		—		1,994		—
	$	695,634	$	659,973	$	1,358,975	$	1,290,693

⁽¹⁾ Certain restatements have been made to the prior year’s operating expense data to conform to the current year presentation, reflecting the realignment of the Company’s corporate structure as previously discussed in this Note.

⁽²⁾ Includes amortization of intangible assets.

⁽³⁾ Restructuring costs relate to the realignment of the Company’s corporate structure.