HUNT J B TRANSPORT SERVICES INC Segments Disclosure

13.	Segment Information

 

We have five reportable business segments which are based primarily on the services each segment provides. The JBI segment includes freight that is transported by rail over at least some portion of the movement and also includes certain repositioning truck freight moved by JBI equipment or third-party carriers, when such highway movement is intended to direct JBI equipment back toward intermodal operations. DCS segment business includes company-owned and customer-owned, DCS-operated revenue equipment and employee drivers assigned to a specific customer, traffic lane, or service. DCS operations usually include formal, written longer-term agreements or contracts that govern services performed and applicable rates. ICS provides non-asset and asset-light transportation solutions to customers through relationships with third-party carriers and integration with company-owned equipment. ICS services include flatbed, refrigerated, and expedited, as well as a variety of dry-van and intermodal solutions. ICS further offers these services through an online multimodal marketplace via J.B. Hunt 360 that matches the right load with the right carrier and the best mode. FMS provides last-mile delivery services to customers through a nationwide network of cross-dock and other delivery system network locations. FMS provides both asset and non-asset big and bulky delivery and installation services, as well as fulfillment, retail-pooling distributions, and LTL services. JBT business includes full-load, dry-van freight that is transported using independent contractors or third-party carriers utilizing company-owned trailing equipment as well as services through our J.B. Hunt 360box program which utilizes the J.B. Hunt 360 platform to access capacity and offer efficient drop trailer solutions to customers. This freight is typically transported over roads and highways and does not move by rail. All transactions between reporting segments are eliminated in consolidation.

 

Our President and Chief Executive Officer serves as our Chief Operating Decision Maker (CODM) and is responsible for reviewing segment performance and making decisions regarding capital and personnel allocations. Our measure of profit or loss for segment reporting purposes provided to the CODM is operating income. The CODM considers operating income budget-to-actual variances on a monthly basis to assess the performance for each of our segments. Effectively all corporate support expenses are allocated to our operating segments within various expense line items presented. Assets reported by our corporate support group are not allocated. Intersegment revenues and corresponding expenses included in our segment reporting are eliminated upon consolidation.

 

Our customers are geographically dispersed across the United States. A summary of certain segment information is presented below (in millions):

 

		Assets (Excludes intercompany accounts) December 31,
		2025				2024				2023
JBI		$	3,324			$	3,507			$	3,391
DCS			2,070				2,195				2,355
ICS			286				288				350
FMS			485				544				634
JBT			364				389				419
Total segment assets			6,529				6,923				7,149
Other (includes corporate)			1,398				1,389				1,439
Total		$	7,927			$	8,312			$	8,588

 

 

		Net Capital Expenditures (1) For The Twelve Months Ended December 31,
		2025				2024				2023
JBI		$	163			$	322			$	536
DCS			228				153				716
ICS			1				20				2
FMS			10				15				36
JBT			1				14				30
Total segment net capital expenditures			403				524				1,320
Other (includes corporate)			172				150				280
Total		$	575			$	674			$	1,600

 

		Revenues and Operating Income/(Loss)
		For The Year ended December 31, 2025
		JBI				DCS				ICS				FMS				JBT				Intersegment Eliminations				Consolidated
Total operating revenues		$	5,975			$	3,376			$	1,109			$	824			$	734			$	(19	)		$	11,999
Operating expenses:
Rents, purchased transportation, and fuel			3,716				430				958				306				547
Salaries, wages and employee benefits			877				1,531				67				286				41
Depreciation and amortization			247				317				8				45				26
Operating supplies and expenses			259				283				7				38				30
Insurance and claims			115				174				16				23				25
General and administrative expenses, including asset dispositions			278				205				62				92				42
Other segment items (2)			33				59				1				7				2
Total operating expenses			5,525				2,999				1,119				797				713				(19	)			11,134
Operating Income (3)		$	450			$	377			$	(10	)		$	27			$	21			$	-			$	865

 

		Revenues and Operating Income/(Loss)
		For The Year ended December 31, 2024
		JBI				DCS				ICS				FMS				JBT				Intersegment Eliminations				Consolidated
Total operating revenues		$	5,956			$	3,396			$	1,141			$	910			$	702			$	(18	)		$	12,087
Operating expenses:
Rents, purchased transportation, and fuel			3,791				451				967				330				509
Salaries, wages and employee benefits			844				1,528				79				310				43
Depreciation and amortization			249				330				35				46				36
Operating supplies and expenses			244				276				8				41				27
Insurance and claims			106				173				21				14				20
General and administrative expenses, including asset dispositions			260				202				86				101				44
Other segment items (2)			32				60				1				8				2
Total operating expenses			5,526				3,020				1,197				850				681				(18	)			11,256
Operating Income (3)		$	430			$	376			$	(56	)		$	60			$	21			$	-			$	831

 

 

		Revenues and Operating Income/(Loss)
		For The Year ended December 31, 2023
		JBI				DCS				ICS				FMS				JBT				Intersegment Eliminations				Consolidated
Total operating revenues		$	6,208			$	3,543			$	1,390			$	918			$	789			$	(18	)		$	12,830
Operating expenses:
Rents, purchased transportation, and fuel			3,986				538				1,225				319				574
Salaries, wages and employee benefits			808				1,552				87				325				50
Depreciation and amortization			256				327				6				48				44
Operating supplies and expenses			228				285				8				45				31
Insurance and claims			100				161				30				23				23
General and administrative expenses, including asset dispositions			230				214				77				101				48
Other segment items (2)			31				61				1				10				3
Total operating expenses			5,639				3,138				1,434				871				773				(18	)			11,837
Operating Income (3)		$	569			$	405			$	(44	)		$	47			$	16			$	-			$	993

 

	(1) Net capital expenditures report the additions to property and equipment, net of proceeds from the sale of property and equipment.
	(2) Other segment items include communication, utilities, and operating taxes and licenses expense items.
	(3) Refer to the Consolidated Statements of Earnings for the reconciliation of consolidated operating income to earnings before income taxes.