XML 30 R18.htm IDEA: XBRL DOCUMENT v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
We have two reportable segments – Truckload Transportation Services (“TTS”) 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 contained in our 2024 Form 10-K. 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):
Three Months Ended March 31, 2025
Truckload Transportation ServicesWerner LogisticsTotal
Revenues from external customers$497,812 $195,558 $693,370 
Inter-segment revenues4,063 — 4,063 
Reportable segment revenues501,875 195,558 697,433 

Reconciliation of revenues:
Other revenues (1)
18,744 
Elimination of inter-segment revenues(4,063)
Consolidated revenues$712,114 

Less operating expenses: (2)
Salaries, wages and benefits217,703 18,256 235,959 
Fuel62,433 360 62,793 
Supplies and maintenance51,338 2,673 54,011 
Taxes and licenses21,957 223 22,180 
Insurance and claims43,074 622 43,696 
Depreciation and amortization63,046 3,692 66,738 
Rent and purchased transportation38,453 169,219 207,672 
Communications and utilities3,608 357 3,965 
Gains on sales of property and equipment(3,288)(299)(3,587)
Other segment items (3)
4,467 930 5,397 
Reportable segment operating expenses502,791 196,033 698,824 
Reportable segment operating loss$(916)$(475)$(1,391)

Reconciliation of operating loss:
Other operating loss (1)
(4,441)
Consolidated operating loss$(5,832)
Three Months Ended March 31, 2024
Truckload Transportation ServicesWerner LogisticsTotal
Revenues from external customers$547,055 $202,482 $749,537 
Inter-segment revenues4,071 — 4,071 
Reportable segment revenues551,126 202,482 753,608 

Reconciliation of revenues:
Other revenues (1)
19,543 
Elimination of inter-segment revenues(4,071)
Consolidated revenues$769,080 

Less operating expenses: (2)
Salaries, wages and benefits236,531 21,310 257,841 
Fuel76,874 438 77,312 
Supplies and maintenance54,130 1,884 56,014 
Taxes and licenses24,776 240 25,016 
Insurance and claims35,034 1,229 36,263 
Depreciation and amortization66,933 3,667 70,600 
Rent and purchased transportation32,495 174,166 206,661 
Communications and utilities3,634 767 4,401 
Gains on sales of property and equipment(4,465)(219)(4,684)
Other segment items (3)
4,344 1,329 5,673 
Reportable segment operating expenses530,286 204,811 735,097 
Reportable segment operating income (loss)$20,840 $(2,329)$18,511 

Reconciliation of operating income:
Other operating loss (1)
(2,923)
Consolidated operating income$15,588 
(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.