OPERATING SEGMENT DATA (Tables)

12 Months Ended

Dec. 31, 2021

OPERATING SEGMENT DATA

Schedule of reportable operating segment information

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

	2021		2020		2019
	(in thousands)
REVENUES
Asset-Based	$	2,573,773	$	2,092,031	$	2,144,679
ArcBest(1)		1,300,626		779,115		738,392
FleetNet		254,087		205,049		211,738
Other and eliminations		(148,419)		(136,032)		(106,499)
Total consolidated revenues	$	3,980,067	$	2,940,163	$	2,988,310
OPERATING EXPENSES
Asset-Based
Salaries, wages, and benefits	$	1,198,253	$	1,095,694	$	1,148,761
Fuel, supplies, and expenses		266,139		209,095		257,133
Operating taxes and licenses		49,461		49,300		50,209
Insurance		37,800		33,568		32,516
Communications and utilities		18,773		17,916		18,614
Depreciation and amortization		93,799		94,326		89,798
Rents and purchased transportation		364,345		250,159		221,479
Shared services		263,532		217,258		212,773
Gain on sale of property and equipment(2)		(8,676)		(3,309)		(5,892)
Innovative technology costs(3)		27,631		22,458		13,739
Other		2,009		6,701		3,488
Total Asset-Based		2,313,066		1,993,166		2,042,618
ArcBest(1)
Purchased transportation		1,097,332		649,933		606,113
Supplies and expenses		10,531		9,627		10,789
Depreciation and amortization		11,387		9,714		11,344
Shared services		132,137		90,983		93,961
Gain on sale of subsidiaries(4)		(6,923)		—		—
Other		9,765		9,203		9,860
Asset impairment(5)		—		—		26,514
Total ArcBest		1,254,229		769,460		758,581
FleetNet		249,543		201,682		206,932
Other and eliminations		(117,757)		(122,423)		(83,591)
Total consolidated operating expenses	$	3,699,081	$	2,841,885	$	2,924,540
OPERATING INCOME
Asset-Based	$	260,707	$	98,865	$	102,061
ArcBest(1)		46,397		9,655		(20,189)
FleetNet		4,544		3,367		4,806
Other and eliminations		(30,662)		(13,609)		(22,908)
Total consolidated operating income	$	280,986	$	98,278	$	63,770
OTHER INCOME (COSTS)
Interest and dividend income	$	1,275	$	3,616	$	6,453
Interest and other related financing costs		(8,904)		(11,697)		(11,467)
Other, net(6)		3,797		2,299		(7,285)
Total other costs		(3,832)		(5,782)		(12,299)
INCOME BEFORE INCOME TAXES	$	277,154	$	92,496	$	51,471

(1) For 2021, includes the operations of MoLo since the November 1, 2021 acquisition (see Note D).

(2) For 2021, includes an $8.6 million gain on the sale of unutilized service center property.

(3) Represents costs associated with the freight handling pilot test program at ABF Freight.

(4) Gain relates to the sale of the labor services portion of the ArcBest segment’s moving business in the second quarter 2021.

(5) The ArcBest segment recognized a noncash impairment charge in 2019 related to a portion of the goodwill, customer relationship intangible assets, and revenue equipment associated with the acquisition of truckload and dedicated businesses within the segment (see Note E).

(6) Includes the components of net periodic benefit cost other than service cost, including pension settlement and termination expense (see Note J), and proceeds and changes in cash surrender value of life insurance policies.

The following table reflects information about revenues from customers and intersegment revenues:

	2021		2020		2019
	(in thousands)
Revenues from customers
Asset-Based	$	2,470,529	$	1,998,549	$	2,077,287
ArcBest		1,291,679		770,560		731,366
FleetNet		213,882		166,654		175,055
Other		3,977		4,400		4,602
Total consolidated revenues	$	3,980,067	$	2,940,163	$	2,988,310
Intersegment revenues
Asset-Based	$	103,244	$	93,482	$	67,392
ArcBest		8,947		8,555		7,026
FleetNet		40,205		38,395		36,683
Other and eliminations		(152,396)		(140,432)		(111,101)
Total intersegment revenues	$	—	$	—	$	—
Total segment revenues
Asset-Based	$	2,573,773		2,092,031		2,144,679
ArcBest		1,300,626		779,115		738,392
FleetNet		254,087		205,049		211,738
Other and eliminations		(148,419)		(136,032)		(106,499)
Total consolidated revenues	$	3,980,067	$	2,940,163	$	2,988,310

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

	For the year ended December 31
	2021		2020		2019
	(in thousands)
CAPITAL EXPENDITURES, GROSS
Asset-Based(1)	$	96,180	$	85,135	$	122,437
ArcBest		9,565		1,258		3,909
FleetNet		1,174		675		590
Other and eliminations(2)(3)		11,193		17,983		33,748
	$	118,112	$	105,051	$	160,684

	For the year ended December 31
	2021		2020		2019
	(in thousands)
DEPRECIATION AND AMORTIZATION EXPENSE(2)
Asset-Based	$	93,799	$	94,326	$	89,798
ArcBest(4)		11,387		9,714		11,344
FleetNet(5)		1,661		1,622		1,341
Other and eliminations(2)		17,374		12,729		9,983
	$	124,221	$	118,391	$	112,466

(1) Includes assets acquired through notes payable of $59.7 million, $61.8 million, and $67.6 million in 2021, 2020, and 2019, respectively.

(2) Other and eliminations includes certain assets held for the benefit of multiple segments, including 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.

(3) Includes assets acquired through notes payable of $23.2 million in 2019.

(4) Includes amortization of intangibles of $5.3 million, $3.7 million, and $4.2 million in 2021, 2020, and 2019, respectively.

(5) Includes amortization of intangibles which totaled less than $0.1 million in 2021 and $0.2 million in both 2020 and 2019.

A table of assets by reportable operating segment has not been presented as segment assets are not included in reports regularly provided to management nor does management consider segment assets for assessing segment operating performance or allocating resources.

The Company incurred research and development costs of $32.8 million and $25.6 million for the year ended December 31, 2021 and 2020, respectively, related to innovative technology initiatives.

Schedule of revenues from customers and intersegment revenues

	2021		2020		2019
	(in thousands)
Revenues from customers
Asset-Based	$	2,470,529	$	1,998,549	$	2,077,287
ArcBest		1,291,679		770,560		731,366
FleetNet		213,882		166,654		175,055
Other		3,977		4,400		4,602
Total consolidated revenues	$	3,980,067	$	2,940,163	$	2,988,310
Intersegment revenues
Asset-Based	$	103,244	$	93,482	$	67,392
ArcBest		8,947		8,555		7,026
FleetNet		40,205		38,395		36,683
Other and eliminations		(152,396)		(140,432)		(111,101)
Total intersegment revenues	$	—	$	—	$	—
Total segment revenues
Asset-Based	$	2,573,773		2,092,031		2,144,679
ArcBest		1,300,626		779,115		738,392
FleetNet		254,087		205,049		211,738
Other and eliminations		(148,419)		(136,032)		(106,499)
Total consolidated revenues	$	3,980,067	$	2,940,163	$	2,988,310