OPERATING SEGMENT DATA (Tables)

6 Months Ended

Jun. 30, 2018

OPERATING SEGMENT DATA

Schedule of reportable operating segment information

The following tables reflect reportable operating segment information:

	Three Months Ended				Six Months Ended
	June 30				June 30
	2018		2017		2018		2017
	(in thousands)
REVENUES
Asset-Based	$	559,239	$	514,537	$	1,041,354	$	978,893
ArcBest		199,987		175,929		381,920		328,805
FleetNet		46,792		36,501		94,551		76,739
Other and eliminations		(12,668)		(6,599)		(24,474)		(12,981)
Total consolidated revenues	$	793,350	$	720,368	$	1,493,351	$	1,371,456
OPERATING EXPENSES(1)
Asset-Based
Salaries, wages, and benefits	$	286,750	$	286,904	$	556,529	$	566,284
Fuel, supplies, and expenses		65,040		58,541		127,233		116,931
Operating taxes and licenses		11,910		12,191		23,666		24,014
Insurance		7,979		7,602		14,607		14,720
Communications and utilities		4,135		4,168		8,656		8,685
Depreciation and amortization		21,362		20,716		42,292		41,234
Rents and purchased transportation		63,253		53,189		109,386		99,615
Shared services(2)		56,825		46,600		102,432		90,104
Multiemployer pension fund withdrawal liability charge(3)		37,922		—		37,922		—
(Gain) loss on sale of property and equipment		(266)		25		(399)		(592)
Other		948		1,673		2,247		3,178
Restructuring costs(4)		—		33		—		173
Total Asset-Based		555,858		491,642		1,024,571		964,346
ArcBest
Purchased transportation		162,920		139,432		311,292		261,419
Supplies and expenses		3,538		3,742		6,768		7,412
Depreciation and amortization		3,597		3,230		7,005		6,496
Shared services(2)		23,536		20,658		45,404		40,244
Other		2,546		2,873		4,427		5,338
Restructuring costs(4)		143		65		152		875
Total ArcBest		196,280		170,000		375,048		321,784
FleetNet		45,763		35,754		92,001		74,971
Other and eliminations		(7,707)		(2,795)		(14,150)		(5,512)
Total consolidated operating expenses	$	790,194	$	694,601	$	1,477,470	$	1,355,589

⁽¹⁾ As previously discussed in this Note, the Company retrospectively adopted an amendment to ASC Topic 715, effective January 1, 2018, which requires the components of net periodic benefit cost other than service cost to be presented within other income (costs) in the consolidated financial statements and, therefore, these costs are no longer classified within operating expenses within this table.

⁽²⁾ Certain reclassifications have been made to the prior year’s operating segment data to conform to the current year presentation, reflecting the modified presentation of segment expenses allocated from shared services as previously discussed in this Note.

⁽³⁾ ABF Freight recorded a one-time charge in June 2018 for the multiemployer pension plan withdrawal liability resulting from the transition agreement it entered into with the New England Teamsters and Trucking Industry Pension Fund (see Note F).

⁽⁴⁾ Restructuring costs relate to the realignment of the Company’s corporate structure (see Note K).

	Three Months Ended				Six Months Ended
	June 30				June 30
	2018		2017		2018		2017
	(in thousands)
OPERATING INCOME(1)
Asset-Based	$	3,381	$	22,895	$	16,783	$	14,547
ArcBest		3,707		5,929		6,872		7,021
FleetNet		1,029		747		2,550		1,768
Other and eliminations		(4,961)		(3,804)		(10,324)		(7,469)
Total consolidated operating income	$	3,156	$	25,767	$	15,881	$	15,867
OTHER INCOME (COSTS)
Interest and dividend income	$	714	$	285	$	1,240	$	559
Interest and other related financing costs		(2,013)		(1,389)		(4,072)		(2,704)
Other, net(1)(2)		(1,123)		(528)		(3,324)		(2,234)
Total other income (costs)		(2,422)		(1,632)		(6,156)		(4,379)
INCOME BEFORE INCOME TAXES	$	734	$	24,135	$	9,725	$	11,488

⁽¹⁾ As previously discussed in this Note, for the three and six months ended June 30, 2018 and 2017, the components of net periodic benefit cost other than service cost are presented within other income (costs) rather than within operating income (loss) in accordance with an amendment to ASC Topic 715, which the Company adopted retrospectively effective January 1, 2018.

⁽²⁾ 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
	2018		2017		2018		2017
	(in thousands)
OPERATING EXPENSES
Salaries, wages, and benefits	$	355,913	$	349,200	$	684,670	$	681,790
Rents, purchased transportation, and other costs of services		253,540		216,237		477,296		416,108
Fuel, supplies, and expenses		84,884		68,451		163,530		141,113
Depreciation and amortization(1)		27,187		25,209		53,673		50,603
Other		30,408		35,141		59,663		63,981
Multiemployer pension fund withdrawal liability charge(2)		37,922		—		37,922		—
Restructuring costs(3)		340		363		716		1,994
	$	790,194	$	694,601	$	1,477,470	$	1,355,589

⁽¹⁾ Includes amortization of intangible assets.

⁽²⁾ ABF Freight recorded a one-time charge in June 2018 for the multiemployer pension plan withdrawal liability resulting from the transition agreement it entered into with the New England Teamsters and Trucking Industry Pension Fund (see Note F).

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