OPERATING SEGMENT DATA (Tables)

9 Months Ended

Sep. 30, 2019

OPERATING SEGMENT DATA

Schedule of reportable operating segment information

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2019		2018		2019		2018
	(in thousands)
REVENUES
Asset-Based	$	565,621	$	585,290	$	1,631,348	$	1,626,644
ArcBest		199,758		205,449		554,135		587,369
FleetNet		53,976		50,494		158,957		145,045
Other and eliminations		(31,792)		(15,075)		(73,548)		(39,549)
Total consolidated revenues	$	787,563	$	826,158	$	2,270,892	$	2,319,509
OPERATING EXPENSES
Asset-Based
Salaries, wages, and benefits	$	296,503	$	292,082	$	873,795	$	848,611
Fuel, supplies, and expenses(1)		65,738		63,936		195,502		191,163
Operating taxes and licenses		12,865		12,261		37,477		35,927
Insurance		7,646		9,448		23,235		24,055
Communications and utilities		5,064		4,308		14,181		12,964
Depreciation and amortization		23,776		22,200		66,370		64,492
Rents and purchased transportation		61,102		70,946		167,234		180,332
Shared services(1)		56,031		57,472		161,664		158,042
Multiemployer pension fund withdrawal liability charge(2)		—		—		—		37,922
Gain on sale of property and equipment		(82)		(123)		(1,703)		(522)
Innovative technology costs(1)(3)		4,664		1,080		9,200		2,947
Other(1)		592		1,530		2,878		3,778
Total Asset-Based		533,899		535,140		1,549,833		1,559,711
ArcBest
Purchased transportation		164,521		164,322		452,178		475,614
Supplies and expenses		2,780		3,522		8,412		10,290
Depreciation and amortization		2,607		3,558		8,813		10,563
Shared services		25,032		23,453		71,204		68,857
Other		2,366		2,546		7,224		6,973
Restructuring costs(4)		—		—		—		152
Gain on sale of subsidiaries(5)		—		(1,945)		—		(1,945)
Total ArcBest		197,306		195,456		547,831		570,504
FleetNet		52,805		49,406		155,272		141,407
Other and eliminations		(27,655)		(9,899)		(57,043)		(24,049)
Total consolidated operating expenses	$	756,355	$	770,103	$	2,195,893	$	2,247,573

(1) As previously discussed in this Note, the presentation of Asset-Based segment expenses was modified in third quarter 2019 to present innovative technology costs as a separate operating expense line item. Certain reclassifications have been made to the prior period operating segment expenses to conform to the current year presentation.

(2) The nine months ended September 30, 2018 includes a one-time $37.9 million pre-tax charge ABF Freight recorded in second quarter 2018 for the multiemployer pension plan withdrawal liability resulting from the transition agreement with the New England Pension Fund.

(3) Represents costs associated with the freight handling pilot test program at ABF Freight previously discussed in this Note.

(4) Restructuring costs relate to the realignment of the Company’s corporate structure as further described in Note N to the consolidated financial statements in Item 8 of the Company’s 2018 Annual Report on Form 10-K.

(5) Gain recognized in the 2018 periods relates to the sale of the ArcBest segment’s military moving businesses in December 2017.

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2019		2018		2019		2018
	(in thousands)
OPERATING INCOME
Asset-Based	$	31,722	$	50,150	$	81,515	$	66,933
ArcBest		2,452		9,993		6,304		16,865
FleetNet		1,171		1,088		3,685		3,638
Other and eliminations		(4,137)		(5,176)		(16,505)		(15,500)
Total consolidated operating income	$	31,208	$	56,055	$	74,999	$	71,936
OTHER INCOME (COSTS)
Interest and dividend income	$	1,768	$	1,120	$	4,862	$	2,360
Interest and other related financing costs		(2,900)		(2,470)		(8,593)		(6,542)
Other, net(1)		(6,734)		(714)		(7,770)		(4,038)
Total other income (costs)		(7,866)		(2,064)		(11,501)		(8,220)
INCOME BEFORE INCOME TAXES	$	23,342	$	53,991	$	63,498	$	63,716

(1) Includes the components of net periodic benefit cost other than service cost related to the Company’s nonunion pension, SBP, and postretirement plans (see Note G) and proceeds and changes in cash surrender value of life insurance policies. The three and nine months ended September 30, 2019 include a noncash pension termination expense related to an amount which was stranded in accumulated other comprehensive loss until the pension benefit obligation was settled upon plan termination (see Note G).

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

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2019		2018		2019		2018
	(in thousands)
OPERATING EXPENSES
Salaries, wages, and benefits	$	363,902	$	363,348	$	1,068,685	$	1,048,018
Rents, purchased transportation, and other costs of services		249,110		265,042		706,200		742,338
Fuel, supplies, and expenses		81,023		82,188		241,059		245,718
Depreciation and amortization(1)		29,361		28,026		83,332		81,699
Other		32,959		31,449		96,617		91,112
Multiemployer pension fund withdrawal liability charge(2)		—		—		—		37,922
Restructuring costs(3)		—		50		—		766
	$	756,355	$	770,103	$	2,195,893	$	2,247,573

(1) Includes amortization of intangible assets.

(2) ABF Freight recorded a one-time charge in second quarter 2018 for the multiemployer pension plan withdrawal liability resulting from the transition agreement with the New England Teamsters and Trucking Industry Pension Fund.

(3) Restructuring costs relate to the realignment of the Company’s corporate structure as further described in Note N to the consolidated financial statements in Item 8 of the Company’s 2018 Annual Report on Form 10-K.