Note 13 - Segment Information

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

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,
	2024		2023		2022
JBI	$	3,507	$	3,391	$	3,270
DCS		2,195		2,355		1,989
ICS		288		350		311
FMS		544		634		620
JBT		389		419		437
Total segment assets		6,923		7,149		6,627
Other (includes corporate)		1,389		1,439		1,160
Total	$	8,312	$	8,588	$	7,787

	Net Capital Expenditures (1)
	Years ended December 31,
	2024		2023		2022
JBI	$	322	$	536	$	622
DCS		153		716		494
ICS		20		2		14
FMS		15		36		46
JBT		14		30		167
Total segment net capital expenditures		524		1,320		1,343
Other (includes corporate)		150		280		89
Total	$	674	$	1,600	$	1,432

	Revenues and Operating Income/(Loss)
	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, net of 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)
	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, net of 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

	Revenues and Operating Income
	Year ended December 31, 2022
	JBI		DCS		ICS		FMS		JBT		Intersegment Eliminations			Consolidated
Total operating revenues	$	7,022	$	3,524	$	2,323	$	1,042	$	937	$	(34	)	$	14,814
Operating expenses:
Rents, purchased transportation, and fuel		4,616		660		2,002		397		683
Salaries, wages and employee benefits		827		1,527		109		372		61
Depreciation and amortization		226		280		3		44		35
Operating supplies and expenses		205		289		7		53		26
Insurance and claims		101		149		42		26		19
General and administrative expenses, net of asset dispositions		218		207		102		103		33
Other segment items (2)		29		51		1		10		3
Total operating expenses		6,222		3,163		2,266		1,005		860		(34	)		13,482
Operating Income (3)	$	800	$	361	$	57	$	37	$	77	$	-		$	1,332

(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.