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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We have two reportable segments – Truckload Transportation Services and Werner Logistics.
The TTS reportable segment consists of two operating segments, Dedicated and One-Way Truckload. These operating segments are aggregated because they have similar economic characteristics and meet the other aggregation criteria described in the accounting guidance for segment reporting. Dedicated provides truckload services dedicated to a specific customer, generally for a retail distribution center or manufacturing facility, utilizing either dry van or specialized trailers. One-Way Truckload is comprised of the following operating fleets: (i) the medium-to-long-haul van (“Van”) fleet transports a variety of consumer nondurable products and other commodities in truckload quantities over irregular routes using dry van trailers, including Mexico cross-border routes; (ii) the expedited (“Expedited”) fleet provides time-sensitive truckload services utilizing driver teams; (iii) the regional short-haul (“Regional”) fleet provides comparable truckload van service within geographic regions across the United States; and (iv) the Temperature Controlled fleet provides truckload services for temperature sensitive products over irregular routes utilizing temperature-controlled trailers. Revenues for the TTS segment include a small amount
of non-trucking revenues which consist primarily of the intra-Mexico portion of cross-border shipments delivered to or from Mexico where we utilize a third-party capacity provider.
The Werner Logistics segment provides non-asset-based transportation and logistics services. Werner Logistics provides services throughout North America and generates the majority of our non-trucking revenues through three operating units. These three Werner Logistics operating units are as follows: (i) Truckload Logistics, which uses contracted carriers to complete shipments for brokerage customers and freight management customers for which we offer a full range of single-source logistics management services and solutions; (ii) the Intermodal (“Intermodal”) unit offers rail transportation through alliances with rail and drayage providers as an alternative to truck transportation; and (iii) Werner Final Mile (“Final Mile”) offers residential and commercial deliveries of large or heavy items using third-party agents, independent contractors, and Company employees with two-person delivery teams operating a liftgate straight truck.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Inter-segment transactions between reporting segments have been recorded at amounts approximating market and are eliminated in consolidation.
The chief operating officer of the Company is our chief operating decision maker (“CODM”). Our CODM evaluates the operating results of each individual segment, using monthly divisional financial statements, to asses performance and to allocate resources to each segment. Our divisional financial statements detail the revenues and operating expenses of each individual segment netting to operating income (loss) that allows the CODM to make operational decisions regarding each individual segment.
We do not prepare separate balance sheets by segment and, as a result, assets are not separately identifiable by segment. Based on our operations, certain revenue-generating assets (primarily tractors and trailers) are interchangeable between segments. Depreciation for these interchangeable assets is allocated to segments based on the actual number of units utilized by the segment during the period. Other depreciation and amortization is allocated to segments based on specific identification or as a percentage of a metric such as average number of tractors.
The following tables summarize our segment information (in thousands):
Year Ended December 31, 2024
Truckload Transportation ServicesWerner LogisticsTotal
Revenues from external customers$2,123,864 $831,337 $2,955,201 
Inter-segment revenues14,429 — 14,429 
Reportable segment revenues2,138,293 831,337 2,969,630 

Reconciliation of revenues:
Other revenues (1)
75,057 
Elimination of inter-segment revenues(14,429)
Consolidated revenues$3,030,258 

Less operating expenses: (2)
Salaries, wages and benefits922,921 81,565 1,004,486 
Fuel272,570 1,575 274,145 
Supplies and maintenance211,847 9,602 221,449 
Taxes and licenses95,541 983 96,524 
Insurance and claims141,654 3,438 145,092 
Depreciation and amortization261,170 15,176 276,346 
Rent and purchased transportation139,848 714,385 854,233 
Communications and utilities13,884 1,983 15,867 
Gains on sales of property and equipment(10,993)(1,090)(12,083)
Other segment items (3)
14,685 4,601 19,286 
Reportable segment operating expenses2,063,127 832,218 2,895,345 
Reportable segment operating income (loss)$75,166 $(881)$74,285 

Reconciliation of operating income:
Other operating loss (1)
(8,137)
Consolidated operating income$66,148 
Year Ended December 31, 2023
Truckload Transportation ServicesWerner LogisticsTotal
Revenues from external customers$2,293,120 $910,433 $3,203,553 
Inter-segment revenues17,690 — 17,690 
Reportable segment revenues2,310,810 910,433 3,221,243 

Reconciliation of revenues:
Other revenues (1)
79,946 
Elimination of inter-segment revenues(17,690)
Consolidated revenues$3,283,499 

Less operating expenses: (2)
Salaries, wages and benefits951,712 89,401 1,041,113 
Fuel341,126 2,336 343,462 
Supplies and maintenance224,988 7,933 232,921 
Taxes and licenses101,149 1,099 102,248 
Insurance and claims134,319 3,895 138,214 
Depreciation and amortization271,245 15,395 286,640 
Rent and purchased transportation130,076 768,793 898,869 
Communications and utilities13,908 3,636 17,544 
Gains on sales of property and equipment(45,453)(1,497)(46,950)
Other segment items (3)
18,410 3,563 21,973 
Reportable segment operating expenses2,141,480 894,554 3,036,034 
Reportable segment operating income$169,330 $15,879 $185,209 

Reconciliation of operating income:
Other operating loss (1)
(8,793)
Consolidated operating income$176,416 
Year Ended December 31, 2022
Truckload Transportation ServicesWerner LogisticsTotal
Revenues from external customers$2,423,468 $793,492 $3,216,960 
Inter-segment revenues5,218 — 5,218 
Reportable segment revenues2,428,686 793,492 3,222,178 

Reconciliation of revenues:
Other revenues (1)
73,018 
Elimination of inter-segment revenues(5,218)
Consolidated revenues$3,289,978 

Less operating expenses: (2)
Salaries, wages and benefits920,166 69,894 990,060 
Fuel430,962 4,292 435,254 
Supplies and maintenance221,821 7,186 229,007 
Taxes and licenses96,461 994 97,455 
Insurance and claims143,914 3,118 147,032 
Depreciation and amortization256,768 9,989 266,757 
Rent and purchased transportation119,506 659,839 779,345 
Communications and utilities13,287 1,683 14,970 
Gains on sales of property and equipment(85,268)(2,014)(87,282)
Other segment items (3)
16,514 2,327 18,841 
Reportable segment operating expenses2,134,131 757,308 2,891,439 
Reportable segment operating income$294,555 $36,184 $330,739 

Reconciliation of operating income:
Other operating loss (1)
(7,663)
Consolidated operating income$323,076 
(1) Revenues and operating income or loss from segments below the quantitative thresholds for determining reportable segments. Those segments include driver training schools, transportation-related activities such as third-party equipment maintenance and equipment leasing, other business activities, and corporate related items which are incidental to our activities and are not attributable to any of our operating segments.
(2) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Inter-segment expenses are included within the amounts shown.
(3) Other segment items for each reportable segment primarily includes costs for professional services. During 2023 and 2022, other segment items for the Logistics segment were partially offset by net favorable changes of $2.7 million and $2.5 million, respectively, to the contingent earnout liabilities related to the ReedTMS and NEHDS Logistics, LLC acquisitions, respectively.
Information about the geographic areas in which we conduct business is summarized below (in thousands). Operating revenues for foreign countries include revenues for (i) shipments with an origin or destination in that country and (ii) other services provided in that country. If both the origin and destination are in a foreign country, the revenues are attributed to the country of origin.
Years Ended December 31,
202420232022
Revenues
United States$2,854,184 $3,089,205 $3,051,788 
Foreign countries
Mexico147,761 159,170 191,126 
Other28,313 35,124 47,064 
Total foreign countries176,074 194,294 238,190 
Total$3,030,258 $3,283,499 $3,289,978 

Long-lived Assets
United States$1,912,997 $1,948,039 $1,795,337 
Foreign countries
Mexico21,165 24,818 29,819 
Other74 99 120 
Total foreign countries21,239 24,917 29,939 
Total$1,934,236 $1,972,956 $1,825,276 
We generate substantially all of our revenues within the United States or from North American shipments with origins or destinations in the United States. Our largest customer, Dollar General, accounted for 11% of our total revenues in 2024, 10% in 2023, and 14% in 2022. Revenues generated by Dollar General are reported in both of our reportable operating segments.