RUSH ENTERPRISES INC \TX\ Segments Disclosure
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16. |
SEGMENTS: |
The Company reports information based on operating segments identified in accordance with how the chief operating decision maker (“CODM”) evaluates business performance and allocates resources. As of the reporting period, the Company operates with one CODM: W.M. “Rusty” Rush, the Chief Executive Officer, President and Chairman of the Board.
As of the reporting period, the Company has reportable business segment - the Truck Segment. The Truck Segment includes the Company’s operation of a network of commercial vehicle dealerships in the United States and Ontario, Canada that provide an integrated one-stop source for the commercial vehicle needs of its customers, including retail sales of new and used commercial vehicles; aftermarket parts sales, service and collision center facilities; vehicle upfitting and financial services, including the financing of new and used commercial vehicle purchases, insurance products and truck leasing and rentals. The commercial vehicle dealerships are deemed a single reporting unit because they have similar economic characteristics. The Company’s CODM considers the entire Truck Segment, not individual dealerships or departments within its dealerships, when making decisions about resources to be allocated to the segment and assessing its performance.
In addition to the Truck Segment, the Company generates revenue from two additional operating segments: Retail Tire Sales and Insurance Services. These operating segments do not meet the quantitative thresholds for separate reporting as specified under the guidance of ASC 280-10. Therefore, they are consolidated under the “All Other” category in the segment disclosures below. These segments share accounting policies consistent with the summary of significant accounting policies.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on segment operating income, not including extraordinary items.
The following table contains summarized information about reportable segment revenues, segment income or loss from continuing operations and segment assets for the periods ended December 31, 2025, 2024 and 2023 (in thousands):
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Truck |
All |
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Segment |
Other |
Totals |
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2025 |
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Revenues from external customers |
$ | 7,419,068 | $ | 15,127 | $ | 7,434,195 | ||||||
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Cost of products sold |
5,971,594 | 1,937 | 5,973,531 | |||||||||
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Controllable expenses |
879,580 | 5,590 | 885,170 | |||||||||
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Allocated expenses |
173,739 | 7,999 | 181,737 | |||||||||
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Segment operating income |
$ | 394,155 | $ | (399 | ) | $ | 393,756 | |||||
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Other Income |
(1,655 | ) | – | (1,655 | ) | |||||||
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Interest income |
1,916 | – | 1,916 | |||||||||
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Interest expense |
47,780 | 371 | 48,151 | |||||||||
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Income taxes |
79,828 | – | 79,828 | |||||||||
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Net Income |
$ | 266,809 | $ | (771 | ) | $ | 266,038 | |||||
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Segment assets |
4,372,791 | 57,745 | 4,430,536 | |||||||||
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Goodwill |
439,055 | 2,560 | 441,615 | |||||||||
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Capital expenditures |
399,831 | – | 399,831 | |||||||||
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Depreciation and amortization |
70,552 | 584 | 71,136 | |||||||||
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Truck |
All |
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Segment |
Other |
Totals |
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2024 |
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Revenues from external customers |
$ | 7,788,842 | $ | 15,904 | $ | 7,804,746 | ||||||
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Cost of products sold |
6,271,327 | 2,003 | 6,273,330 | |||||||||
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Controllable expenses |
952,973 | 5,953 | 958,926 | |||||||||
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Allocated expenses |
96,159 | 8,240 | 104,400 | |||||||||
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Segment operating income |
$ | 468,383 | $ | (292 | ) | $ | 468,090 | |||||
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Other Income |
583 | – | 583 | |||||||||
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Interest income |
1,166 | – | 1,166 | |||||||||
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Interest expense |
71,658 | 366 | 72,024 | |||||||||
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Income taxes |
92,845 | – | 92,845 | |||||||||
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Net Income |
$ | 305,628 | $ | (658 | ) | $ | 304,970 | |||||
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Segment assets |
4,561,583 | 55,964 | 4,617,547 | |||||||||
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Goodwill |
424,933 | 2,560 | 427,493 | |||||||||
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Capital expenditures |
432,400 | 647 | 433,047 | |||||||||
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Depreciation and amortization |
68,031 | 518 | 68,549 | |||||||||
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Truck |
All |
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Segment |
Other |
Totals |
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2023 |
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Revenues from external customers |
$ | 7,909,230 | $ | 15,794 | $ | 7,925,024 | ||||||
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Cost of products sold |
6,329,629 | 2,305 | 6,331,934 | |||||||||
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Controllable expenses |
789,109 | 4,907 | 794,016 | |||||||||
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Allocated expenses |
278,117 | 8,576 | 286,693 | |||||||||
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Segment operating income |
$ | 512,375 | $ | 6 | $ | 512,381 | ||||||
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Other Income |
2,597 | – | 2,597 | |||||||||
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Interest income |
777 | – | 777 | |||||||||
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Interest expense |
53,324 | 370 | 53,694 | |||||||||
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Income taxes |
114,000 | – | 114,000 | |||||||||
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Net Income |
$ | 348,437 | $ | (364 | ) | $ | 348,061 | |||||
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Segment assets |
4,308,264 | 55,977 | 4,364,241 | |||||||||
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Goodwill |
418,148 | 2,560 | 420,708 | |||||||||
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Capital expenditures |
367,942 | 939 | 368,881 | |||||||||
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Depreciation and amortization |
59,373 | 457 | 59,830 | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.