13.	SEGMENT INFORMATION

As discussed in Note

2019

the Company made a number of changes to its organizational structure. To align with how our Chief Operating Decision Maker (“CODM”) allocates resources and assesses performance against key growth strategies, we have made changes to the company’s reportable segments. As a result, it was determined that the Company has

four

reportable segments consisting of Highway Services, Dedicated, Managed Freight and our accounts receivable Factoring.

With respect to the

four

reportable segments:

●	Highway Services: Includes the Company’s Expedited and OTR services, which are typically ad-hoc and do not include long-term contracts.

●

Expedited services primarily involves high service freight with delivery standards, such as

1,000

miles in

hours, or

-minute delivery windows. Expedited services generally require

two

-person driver teams on equipment either owned or leased by the Company.

●

OTR services provide customers with

one

-way load capacity over irregular routes for loads that are typically shorter in nature.

●	Dedicated: Specializes in providing customers with committed capacity over extended contract periods using equipment either owned or leased by the Company.

●	Managed Freight: Includes the Company’s Brokerage, TMS and Warehousing services.

●

Brokerage services provide logistics capacity by outsourcing the carriage of customers' freight to contractual

third

parties.

●

TMS provides comprehensive logistics services on a contractual basis to customers who prefer to outsource their logistics needs.

●

Warehousing services provides day-to-day warehouse management services to customers who have chosen to outsource this function.

●	Factoring services assist freight capacity providers with improving cash flows by purchasing accounts receivables at a discount and collecting them directly from the end consumer.

These changes impacted the company’s reportable segments but did

not

impact the company’s Consolidated Financial Statements. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Substantially all intersegment sales prices are market based. We evaluate performance based on operating income of the respective business units.

The following table summarizes our segment information for

2019,

2018,

and

2017:

(in thousands)
Year Ended December 31, 2019	Highway Services			Dedicated		Managed Freight		Factoring		Consolidated
Total revenue from external customers	$	356,521		$	342,473	$	186,394	$	9,140	$	894,528
Intersegment revenue		10,302			-		-		-		10,302
Operating (loss) income		(1,098	)		1,026		8,848		7,258		16,034
Depreciation and amortization (1)		38,325			37,944		2,583		27		78,879

Year Ended December 31, 2018	Highway Services			Dedicated		Managed Freight		Factoring		Consolidated
Total revenue from external customers	$	469,308		$	257,739	$	153,346	$	5,062	$	885,455
Intersegment revenue		7,298			-		-		-		7,298
Operating income		32,693			12,699		10,135		3,459		58,986
Depreciation and amortization (1)		46,931			28,515		695		15		76,156

Year Ended December 31, 2017	Highway Services			Dedicated		Managed Freight		Factoring		Consolidated
Total revenue from external customers	$	467,992		$	144,845	$	89,042	$	3,128	$	705,007
Intersegment revenue		6,009			-		-		-		6,009
Operating income		14,323			5,244		6,388		2,200		28,155
Depreciation and amortization (1)		56,925			19,498		11		13		76,447

(

)

Includes gains and losses on disposition of equipment.

(in thousands)	For the years ended December 31,
	2019			2018			2017
Total external revenues for reportable segments	$	894,528		$	885,455		$	705,007
Intersegment revenues for reportable segments		10,302			7,298			6,009
Elimination of intersegment revenues		(10,302	)		(7,298	)		(6,009	)
Total consolidated revenues	$	894,528		$	885,455		$	705,007