Purchased Transportation Costs
Consolidated purchased transportation costs increased by $66.3 million, or 4.9%, to $1,430.4 million in 2017 from
$1,364.1 million in 2016, primarily driven by higher revenues. Purchased transportation costs as a percentage of revenue increased to 68.4% in 2017 from 67.1% in 2016.
TES purchased transportation costs increased by $76.8 million, or 12.5%, to $690.6 million in 2017 from $613.8 million in 2016,
primarily due to an increase in ground and air expedited freight costs. TES purchased transportation costs as a percentage of TES revenues increased to 64.7% in 2017 from 62.0% in 2016.
LTL purchased transportation costs increased by $10.8 million, or 3.4%, to $331.2 million in 2017 from $320.4 million in 2016.
The increase was due to higher purchased power spot prices, which negatively impacted linehaul expense, partially offset by lower volumes. LTL purchased transportation costs as a percentage of LTL revenues increased to 71.4% in 2017 from 69.4% in
2016.
Ascent purchased transportation costs decreased by $27.7 million, or 6.2%, to $418.2 million in 2017 from
$445.9 million in 2016, and decreased as a percentage of Ascent revenues to 73.3% in 2017 from 74.7% in 2016. The decrease was primarily due to the absence of purchased transportation costs in the fourth quarter of 2017 associated with
Unitrans, which was sold in the third quarter of 2017, partially offset by higher volumes and market rates in international freight forwarding.
Other
Operating Expenses
Consolidated other operating expenses, which reflect the sum of personnel and related benefits, other operating
expenses, and the gain from the sale of Unitrans shown in our consolidated statements of operations, decreased by $5.9 million, or 0.9%, to $655.2 million in 2017 from $661.1 million in 2016.
Within our TES business, other operating expenses increased by $11.5 million, or 3.4%, to $345.0 million in 2017 from
$333.5 million in 2016, primarily due to increased fuel costs of $9.3 million and higher claims expense of $9.2 million, partially offset by a decrease in bad debt expense of $6.7 million. As a percentage of TES revenues, other
operating expenses decreased to 32.3% in 2017 from 33.7% in 2016.
Within our LTL business, other operating expenses increased by
$11.1 million, or 7.7%, to $154.4 million in 2017 from $143.3 million in 2016, primarily due to increased bad debt expense of $3.4 million, salaries and benefits of $2.9 million, and equipment lease and maintenance costs of
$1.7 million. As a percentage of LTL revenues, other operating expenses increased to 33.3% in 2017 from 31.1% in 2016.
Within our
Ascent business, other operating expenses decreased $11.1 million, or 8.5%, to $119.2 million in 2017 from $130.3 million in 2016, primarily due to the absence of other operating expenses in the fourth quarter of 2017 associated with
Unitrans, which was sold in the third quarter of 2017. In addition, we also experienced lower losses from the sale of property and equipment of $2.8 million and lower bad debt expense of $1.9 million. As a percentage of Ascent revenues,
other operating expenses decreased to 20.9% in 2017 from 21.8% in 2016.
Other operating expenses that were not allocated to our TES, LTL,
or Ascent businesses decreased $17.3 million, or 32.1%, to $36.7 million in 2017 from $54.0 million in 2016, primarily due to a $35.4 million gain on the sale of Unitrans in September 2017 and lower equipment lease expense of
$14.0 million, partially offset by restructuring and restatement costs of $32.3 million incurred in 2017 associated with legal, consulting and accounting matters, including internal and external investigations, SEC and accounting
compliance, and restructuring, and increased salaries and benefits of $3.8 million.
Depreciation and Amortization
Consolidated depreciation and amortization decreased to $37.7 million in 2017 from $38.1 million in 2016, due to decreases in
property, plant and equipment attributable to lower capital expenditures in recent years and
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