What changed in this filing

/stocks — the workspaceLOADING

Item 5. Market for Registrant’s Common Equity

2025-02-21 compared with 2024-02-23 · 60 added, 116 removed, 209 unchanged (46% of the section changed)

16 unchanged sentences

December 1 through December 31, 2024

On July 20, 2022, our Board of Directors authorized the purchase of up to $500 million of our common stock.

On August 16, 2024, our Board of Directors authorized the purchase of up to $1 billion of our common stock.

This stock repurchase program has no expiration date.

2 unchanged sentences

The peer group consists of 13 companies:

Robinson Worldwide Inc., CSX Corporation, Expeditors International of Washington Inc., Hub Group Inc., Knight-Swift Transportation Holdings Inc., Norfolk Southern Corporation, Old Dominion Freight Line Inc., Republic Services Inc., Ryder System Inc., Schneider National Inc., Stericycle Inc., Union Pacific Corporation, Waste Management Inc., and XPO, Inc.

CH Robinson Worldwide Inc, CSX Corp, Expeditors International Of Washington Inc, Hub Group Inc, Knight-Swift Transportation Holdings Inc, Norfolk Southern Corp, Old Dominion Freight Line Inc, Republic Services Inc, Ryder System Inc, Schneider National Inc, Union Pacific Corp, Waste Management Inc and XPO Inc.

We have removed Stericycle, Inc.

from our peer group as it was acquired by Waste Management, Inc.

in November 2024.

The graph assumes the value of the investment in our common stock, in the two indexes, and in the peer group (including reinvestment of dividends) was $100 on December 31, 2019 and tracks it through December 31, 2024.

21 unchanged sentences

The amounts of self-insurance change from time to time based on measurement dates, policy expiration dates, and claim type.

For 2021 through 2023, we were self-insured for $500,000 per occurrence as well as subject to coverage-layer-specific, aggregated reimbursement limits of covered excess claims for personal injury and property damage.

For 2023 and 2024, we were self-insured for $500,000 per occurrence as well as subject to coverage-layer-specific, aggregated reimbursement limits of covered excess claims for personal injury and property damage.

We were fully insured for workers’ compensation claims for nearly all states.

7 unchanged sentences

We do not discount our estimated losses.

At December 31, 2023, we had an accrual of approximately $523 million for estimated claims.

At December 31, 2024, we had current accruals of approximately $232 million and long-term accruals of approximately $369 million for estimated claims.

A significant increase in the volume of claims or amount of settlements exceeding our coverage-layer specific, aggregated reimbursement limits could result in a significant increase in our estimated liability for claims in future periods.

In addition, we record receivables for amounts expected to be reimbursed for payments made in excess of self-insurance levels on covered claims.

At December 31, 2023, we have recorded $493 million of expected reimbursement for covered excess claims, other insurance deposits, and prepaid insurance premiums.

At December 31, 2024, we have recorded current assets of $237 million and long-term assets of $192 million of expected reimbursement for covered excess claims, other insurance deposits, and prepaid insurance premiums.

Revenue Equipment

4 unchanged sentences

We periodically review the useful lives and salvage values of our revenue equipment and evaluate our long-lived assets for impairment.

We have not identified any impairment to our assets at December 31, 2023.

We have not identified any impairment to these assets at December 31, 2024.

We have agreements with our primary tractor suppliers for residual or trade-in values for certain new equipment.

30 unchanged sentences

Operating Revenues

Percentage Change

Between Years

Operating revenues

2 unchanged sentences

Salaries, wages and employee benefits

Fuel and fuel taxes

Depreciation and amortization

Fuel and fuel taxes

Operating supplies and expenses

10 unchanged sentences

Our total consolidated operating revenues decreased 5.8% to $12.09 billion in 2024, compared to $12.83 billion in 2023.

This decrease was primarily due to lower volume and revenue per load within ICS and JBI, decreased revenue per load within JBT, and decreased revenue and stop counts in FMS.

This decrease was primarily due to lower volume within DCS, ICS and JBT, decreased revenue per load within JBI and JBT, and decreased revenue and stop counts in FMS.

Fuel surcharge revenues decreased 17.4% to $1.53 billion in 2024, compared to $1.85 billion in 2023.

2 unchanged sentences

Our 2024 consolidated operating expenses decreased 4.9% from 2023, while year-over-year revenue decreased 5.8%, resulting in a 2024 operating ratio of 93.1% compared to 92.3% in 2023.

Rents and purchased transportation costs decreased 20.6% in 2023, primarily due to a decrease in rail and truck carrier purchased transportation rates within JBI, ICS and JBT segments and decreased JBI and ICS load volume, which decreased services provided by third-party rail and truck carriers during the current year.

Rents and purchased transportation costs decreased 8.4% in 2024, primarily due to a decrease in rail and truck carrier purchased transportation rates within JBI, ICS and JBT segments and decreased ICS and JBT load volume, which decreased services provided by third-party rail and truck carriers during the current year.

Salaries, wages and employee benefit costs decreased 0.8% in 2024 from 2023.

This decrease was primarily related to a decrease in employee headcounts and lower incentive compensation, partially offset by increased base driver pay and office personnel compensation in 2023.

This decrease was primarily related to a decrease in employee headcounts, partially offset by an increase in group medical benefit expenses and wage increases.

Depreciation and amortization expense increased 3.1% in 2024, primarily due to the addition of tractors and trailing equipment within JBI and additional depreciation and amortization expense resulting from the recent business acquisition of BNSF Logistics, LLC (BNSFL), partially offset by the impact of the change in expected useful lives of our container fleet and equipment reductions within DCS.

Fuel and fuel taxes expense decreased 13.2% in 2024 compared with 2023, due primarily to a decrease in the price of fuel during 2024 and decreased road miles.

6 unchanged sentences

These payments are classified as purchased transportation expense.

Depreciation and amortization expense increased 14.5% in 2023, primarily due to equipment purchases related to new DCS long-term customer contracts, the addition of trailing equipment within our JBI and JBT segments and increased truck and tractor trades.

Operating supplies and expenses increased 1.4% in 2023 compared with 2022, driven primarily by higher building and facilities maintenance costs, increased tolls expense, increased towing costs, and higher equipment maintenance costs compared to 2022.

Operating supplies and expenses decreased 2.7% in 2024 compared with 2023, driven primarily by lower equipment maintenance costs, decreased towing expenses, lower tolls expense, and decreased other operating supply costs compared to 2023.

Insurance and claims expense decreased 0.6% in 2024, primarily due to lower reserve expense for claims subject to insurance coverage-layer-specific aggregated limits and lower claim volume, partially offset by increased cost per claim and higher insurance policy premium expense.

General and administrative expenses increased 27.5% from 2022, primarily due to a decrease in net gains from sale or disposal of assets, higher building and yard rental expense, and higher software subscription expense, partially offset by lower advertising costs and decreased professional service expense.

Net loss from sale or disposal of assets was $27.8 million in 2023, compared to a net gain from sale or disposal of assets of $25.4 million in 2022.

Net interest expense for 2023 increased by 16.2% compared with 2023, due to higher effective interest rates on our debt and an increase in our average debt balance.

Income tax expense decreased 33.8% in 2023, due primarily to decreased taxable earnings in 2023 and the recording of a discrete benefit associated with the favorable settlement of an uncertain tax position which had been reserved in a prior period during the current year.

General and administrative expenses increased 11.6% from 2023, primarily due to an increase in building and yard rental expense, higher agent services expense, increased technology costs, and higher bad debt expense, partially offset by lower advertising costs and lower net losses from sale or disposal of assets.

Net loss from sale or disposal of assets was $14.6 million in 2024, compared to a net loss from sale or disposal of assets of $27.8 million in 2023.

Net interest expense for 2024 increased by 23.0% compared with 2023, due primarily to an increase in effective interest rates on our debt and an increase in our average debt balance.

Income tax expense decreased 8.7% in 2024, due primarily to decreased taxable earnings in 2024, partially offset by a higher effective income tax rate.

Our effective income tax rate was 24.8% in 2024 and 22.1% in 2023.

The increase in rate was primarily due to discrete tax items recorded in 2023 that were not incurred in 2024.

We operated five business segments during 2024.

40 unchanged sentences

JBI segment revenue decreased 4% to $5.96 billion in 2024, from $6.21 billion in 2023.

This decrease in revenue was primarily a result of an 11% decrease in revenue per load, which is the combination of changes in freight mix, customer rate changes, and fuel surcharge revenue and a 1% decrease in load volume.

Eastern network load volumes decreased 2% and transcontinental loads remained flat compared to 2022.

This decrease in revenue was primarily a result of a 6% decrease in revenue per load, which is the combination of changes in freight mix, customer rate changes, and fuel surcharge revenue, partially offset by a 2% increase in load volume.

Eastern network load volumes decreased 1% and transcontinental loads increased 5% compared to 2023.

Revenue per load excluding fuel surcharges decreased 4% compared to 2023.

Operating income of the JBI segment decreased to $430 million in 2024, from $569 million in 2023.

The decrease is primarily due to decreased revenue and an increase in loss on sale of equipment, together with higher driver and non-driver wages, insurance and claims expense, and increased network and equipment-related costs as a percentage of gross revenue, partially offset by lower rail and third-party dray purchased transportation expense.

In addition, JBI incurred $16 million and $33 million in expense for the segment’s portion of the additional casualty claim reserves in 2023 and 2022, respectively.

DCS segment revenue increased 1% to $3.54 billion in 2023, from $3.52 billion in 2022.

The decrease is primarily due to decreased revenue, increased maintenance and equipment-related costs, increased insurance premiums expense, and higher driver wages and benefits, partially offset by lower rail and third-party dray purchased transportation expense.

In addition, JBI incurred $16 million in expense for the segment’s portion of an additional casualty claims reserve in 2023.

DCS segment revenue decreased 4% to $3.40 billion in 2024, from $3.54 billion in 2023.

Productivity, defined as revenue per truck per week, decreased 2% compared to 2023.

Productivity excluding fuel surcharge revenue increased 3% from 2022.

The increase in productivity excluding fuel surcharge revenue was primarily due to contractual index-based rate increases and improved utilization of equipment.

Customer retention rates are approximately 93%.

Operating income of our DCS segment increased to $405 million in 2023, from $361 million in 2022.

The increase is primarily due to the maturing of new long-term customer contracts, partially offset by higher driver and non-driver wages and benefits, an increase in loss on sale of equipment, higher insurance and claims expense, increased equipment-related costs, and increased bad debt expense when compared to 2022.

In addition, DCS incurred $20 million and $27 million in expense for the segment’s portion of the additional casualty claim reserves in 2023 and 2022, respectively.

Productivity, excluding fuel surcharge revenue, remained flat, primarily due to decreased asset utilization and increased idle equipment, offset by contractual index-based rate increases.

Customer retention rates were approximately 90%.

Operating income of our DCS segment decreased to $376 million in 2024, from $405 million in 2023.

The decrease is primarily due to decreased revenue, higher insurance premiums expense, and higher new account start-up costs, partially offset by decreased equipment-related costs, lower personnel costs, decreased loss on equipment sales, and the maturing of new business onboarded over the past year.

In addition, DCS incurred $20 million in expense for the segment’s portion of an additional casualty claims reserve in 2023.

ICS segment revenue decreased 18% to $1.14 billion in 2024, from $1.39 billion in 2023.

Overall volumes decreased 26%, while revenue per load decreased 20% when compared to 2022, primarily due to lower contractual and spot customer rates and changes in customer freight mix when compared to 2022.

The decrease in revenue was partially offset by the acquisition of the brokerage assets of BNSF Logistics, LLC (BNSFL) on September 30, 2023.

Overall volumes decreased 20%, while revenue per load increased 3%, primarily due to higher contractual and spot rates and changes in customer freight mix when compared to 2023.

The decrease in revenue was partially offset by additional revenue from the acquisition of the brokerage assets of BNSFL in the third quarter 2023.

Contractual business was 61% of the total load volume and 61% of the total revenue in 2024, compared to 64% of the total load volume and 63% of the total revenue in 2023.

Our ICS segment had an operating loss of $44 million in 2023 compared to operating income of $57 million in 2022.

The decrease in operating income was primarily due to decreased revenue, lower gross profit margins, and integration costs related to the BNSFL acquisition, partially offset by lower personnel expenses and decreased technology cost during 2023.

Gross profit margin decreased to 13.4% in the current year versus 14.6% in 2022.

Our ICS segment had an operating loss of $56 million in 2024 compared to an operating loss of $44 million in 2023, primarily due to decreased revenue and integration costs related to the BNSFL acquisition, which included the impairment or accelerated amortization of certain acquired intangible, information system, and lease assets totaling $26 million.

These items were partially offset by lower personnel expenses and reduced equipment rental expense during 2024.

Gross profit margin increased to 16.1% in the current year versus 13.4% in 2023.

Approximately $396 million of ICS revenue for 2024 was executed through the Marketplace for J.B.

Hunt 360 compared to $1.52 billion in 2022.

Hunt 360 compared to $766 million in 2023.

ICS’s carrier base decreased 10% when compared to 2023, primarily due to changes in carrier qualification requirements.

In addition, ICS incurred $10 million and $22 million in expense for the segment’s portion of the additional casualty claim reserves in 2023 and 2022, respectively.

FMS segment revenue decreased 12% to $918 million in 2023 from $1.04 billion in 2022, primarily due to decreased customer demand and the effects of internal efforts to improve revenue quality across certain accounts, partially offset by improved revenue quality at underperforming accounts and the addition of multiple new customer contracts implemented over the past year.

In addition, ICS incurred $10 million in expense for the segment’s portion of an additional casualty claims reserve in 2023.

FMS segment revenue decreased 1% to $910 million in 2024 from $918 million in 2023, primarily due to general weakness in customer demand and loss of business due to internal efforts to improve revenue quality across certain accounts, partially offset by improved revenue quality at underperforming accounts and the addition of multiple new customer contracts implemented over the past year.

Operating income of our FMS segment increased to $60 million in 2024, from $47 million in 2023.

The increase in operating income was primarily due to improvements in revenue quality, lower personnel expenses, lower bad debt expense, and overall cost management, partially offset by inflationary increases in facility rental expenses and increased technology costs.

In addition, FMS incurred $3 million and $5 million in expense for the segment’s portion of the additional casualty claim reserves in 2023 and 2022, respectively.

The increase in operating income was primarily due to improvements in revenue quality, lower personnel expenses, a $4.2 million net benefit from offsetting claim settlements, and overall cost management, partially offset by higher purchased transportation expense.

In addition, FMS incurred $3 million in expense for the segment’s portion of an additional casualty claims reserve in 2023.

JBT segment revenue decreased 11% to $702 million in 2024, from $789 million in 2023.

Excluding fuel surcharges, revenue for 2023 decreased 17% compared to 2022, primarily due to a 19% decrease in revenue excluding fuel surcharge revenue per load, partially offset by a 3% increase in load volume compared to 2022.

Load volume growth was primarily related to the continued expansion of J.B.

Hunt 360box which leverages the J.B.

Hunt 360 platform to access drop trailer capacity for customers across our transportation network.

Excluding fuel surcharges, revenue for 2024 decreased 9% compared to 2023, primarily due to a 5% decrease in revenue excluding fuel surcharge revenue per load and a 5% decrease in load volume compared to 2023.

Total average effective trailer count in 2024 was 12,552 compared to 13,000 in 2023.

At the end of 2024, JBT operated 1,919 tractors, predominantly independent contractors, compared to 1,958 at the end of 2023.

Operating income of our JBT segment decreased to $16 million in 2023, from $77 million in 2022.

The decrease in operating income was driven primarily by the decrease in revenue and an increase in loss on sale of equipment, together with higher purchased transportation expense and equipment-related costs as a percentage of gross revenue.

In addition, JBT incurred $4 million and $7 million in expense for the segment’s portion of the additional casualty claim reserves in 2023 and 2022, respectively.

2022 Compared With 2021

Consolidated Operating Revenues

Our total consolidated operating revenues increased 21.7% to $14.81 billion in 2022, compared to $12.17 billion in 2021.

This increase was primarily due to higher revenue per load and increased load volumes within JBI and JBT, increased average revenue producing trucks and fleet productivity within DCS, and increased revenue in FMS primarily driven by a business acquisition, partially offset by decreased ICS load volume.

Fuel surcharge revenues increased 94.2% to $2.43 billion in 2022, compared to $1.25 billion in 2021.

Revenues excluding fuel surcharge revenues increased 13.4% from 2021.

Consolidated Operating Expenses

Our 2022 consolidated operating expenses increased 21.2% from 2021, while year-over-year revenue increased 21.7%, resulting in a 2022 operating ratio of 91.0% compared to 91.4% in 2021.

Rents and purchased transportation costs increased 14.6% in 2022, primarily due to an increase in rail carrier purchased transportation costs within the JBI segment and an increase in the use of third-party truck carriers by JBT, partially offset by decreased ICS load volume.

Salaries, wages and employee benefit costs increased 22.1% in 2022 from 2021.

This increase was primarily related to increases in driver pay and office personnel compensation and an increase in the number of employees as well as an increase in group medical expense compared to 2021.

Fuel and fuel taxes expense increased 75.6% in 2022 compared with 2021, due primarily to an increase in the price of fuel during 2022 and increased road miles.

Depreciation and amortization expense increased 15.7% in 2022, primarily due to equipment purchases related to new DCS long-term customer contracts, the addition of trailing equipment within our JBI and JBT segments and increased intangible asset amortization expense resulting from the business acquisition within FMS.

Operating supplies and expenses increased 36.1% in 2022 compared with 2021, driven primarily by higher equipment maintenance costs, due to holding equipment longer, increased tire expense, increased tolls expense, and higher travel and entertainment expenses compared to 2021.

Insurance and claims expense increased 92.7% in 2022, primarily due to increased cost per claim, higher insurance policy premium expense, and the inclusion of $94.0 million of expense for additional casualty claim reserves for claims subject to insurance coverage-layer-specific aggregated limits in 2022.

General and administrative expenses increased 10.1% from 2021, primarily due to higher building rentals, higher software subscription expense, increased professional services expense, and higher bad debt expense, partially offset by higher net gains from sale or disposals of assets.

Net gain from sale or disposal of assets was $25.4 million in 2022, compared to a net loss from sale or disposals of assets of $5.5 million in 2021.

Net interest expense for 2022 increased by 9.7% compared with 2021, due to higher effective interest rates on our debt.

Income tax expense increased 30.6% in 2022, due primarily to increased taxable earnings in 2022.

Our effective income tax rate was 24.4% in 2022 and 23.9% in 2021.

JBI segment revenue increased 29% to $7.02 billion in 2022, from $5.45 billion in 2021.

This increase in revenue was primarily a result of a 24% increase in revenue per load, which is the combination of changes in freight mix, customer rate changes, cost recovery efforts, and fuel surcharge revenue and a 4% increase in load volume.

Eastern network load volumes increased 9% and transcontinental loads increased 1% compared to 2021.

Revenue per load excluding fuel surcharges increased 15% compared to 2021.

Operating income of the JBI segment increased to $800 million in 2022, from $603 million in 2021.

The increase is primarily due to increased revenue and higher net gains from the sale of equipment during the current year, partially offset by higher rail and third-party dray purchased transportation expense, higher costs to attract and retain drivers, increased non-driver salary and wages, higher equipment-related expenses, increased insurance and claims expense, and higher costs due to rail and port network inefficiencies and customer detention of equipment.

In addition, JBI incurred $33 million in expense for the segment’s portion of the additional casualty claim reserves in 2022.

DCS segment revenue increased 30% to $3.52 billion in 2022, from $2.71 billion in 2021.

Productivity, defined as revenue per truck per week, increased 11% compared to 2021.

Productivity excluding fuel surcharge revenue increased 4% from 2021.

The increase in productivity was primarily due to contractual index-based rate increases, partially offset by lower productivity of equipment on start-up accounts.

Customer retention rates remained above 98%.

Operating income of our DCS segment increased to $361 million in 2022, from $314 million in 2021.

Higher revenues and higher net gains from the sale of equipment during 2022 were partially offset by increased driver and non-driver wages, benefits and recruiting costs, higher equipment-related expenses, higher costs related to the implementation of new long-term customer contracts, increased insurance and claims expense, and higher bad debt expense when compared to 2021.

In addition, DCS incurred $27 million in expense for the segment’s portion of the additional casualty claim reserves in 2022.

ICS segment revenue decreased 6% to $2.32 billion in 2022, from $2.47 billion in 2021.

Overall volumes decreased 3% when compared to 2021.

Revenue per load decreased 3% when compared to 2021, primarily due to changes in customer freight mix, partially offset by higher contractual customer rates within the truckload business when compared to 2021.

Contractual business was 48% of the total load volume and 50% of the total revenue in 2022, compared to 40% of the total load volume and 37% of the total revenue in 2021.

Operating income of our ICS segment increased to $57 million in 2022, from $40 million in 2021.

The increase in operating income was primarily due to higher gross profit margins, partially offset by higher personnel costs, increased technology spending, increased insurance and claims expense, and higher bad debt expense during 2022.

In addition, ICS incurred $22 million in expense for the segment’s portion of the additional casualty claim reserves in 2022.

Gross profit margin increased to 14.6% in the current year versus 11.5% in 2021.

Approximately $1.52 billion of ICS revenue for 2022 was executed through the Marketplace for J.B.

Hunt 360 compared to $1.58 billion in 2021.

ICS’s carrier base increased 15% when compared to 2021.

FMS segment revenue increased 15% to $1.04 billion in 2022 from $909 million in 2021, primarily due to the implementation of multiple new customer contracts and the acquisition of Zenith Freight Lines, LLC (Zenith) in 2022.

The increase in revenue was partially offset by the effects of internal efforts to improve revenue quality across certain accounts as well as supply-chain related constraints for goods in the primary markets served by FMS.

Operating income of our FMS segment increased to $37 million in 2022, from $34 million in 2021.

The increase in operating income was primarily due to increased revenues, partially offset by higher personnel salary, wages and benefits expense, higher equipment-related expenses, increased insurance and claims expense, increased driver recruiting costs, increased technology costs, and implementation costs related to new long-term contractual business.

In addition, FMS incurred $5 million in expense for the segment’s portion of the additional casualty claim reserves in 2022, while 2021 included an aggregated benefit of $9 million from the net settlement of claims and the reduction of a contingent liability.

JBT segment revenue increased 40% to $937 million in 2022, from $668 million in 2021.

Excluding fuel surcharges, revenue for 2022 increased 31% compared to 2021, primarily due to a 22% increase in load volume and a 8% increase in revenue excluding fuel surcharge revenue per load compared to 2021.

The 2022 growth in load count was primarily due to the continued expansion of J.B.

Hunt 360box which leverages the J.B.

Hunt 360 platform to access drop trailer capacity for customers across our transportation network.

Total average effective trailer count in 2022 was 10,611 compared to 7,123 in 2021.

At the end of 2022, JBT operated 2,242 tractors compared to 1,619 at the end of 2021.

Operating income of our JBT segment increased to $21 million in 2024, from $16 million in 2023.

The increase in operating income was driven primarily by increased load counts and revenue per load during the current year, which were partially offset by higher purchased transportation expense, higher equipment-related expenses, increased personnel costs, increased insurance and claims expense, and increased technology spending related to the continued expansion of J.B.

In addition, JBT incurred $7 million in expense for the segment’s portion of the additional casualty claim reserves in 2022.

The increase in operating income was driven primarily by lower personnel expenses, lower equipment-related costs and overall cost management initiatives, partially offset by higher insurance premiums expense.

In addition, JBT incurred $4 million in expense for the segment’s portion of an additional casualty claims reserve in 2023.

This management's discussion and analysis provides comparisons of material changes in the consolidated financial statements for the years ended December 31, 2024 and 2023.

For a comparison of the years ended December 31, 2023 and 2022, refer to Management's Discussion and Analysis of Financial Condition and Results of Operations included in our annual report on Form 10-K for the year ended December 31, 2023.

LIQUIDITY AND CAPITAL RESOURCES

Net cash provided by operating activities totaled $1.48 billion in 2024, compared to $1.74 billion in 2023.

The decrease was primarily due to decreased earnings of approximately $241 million, mostly offset by the timing of general working capital activities.

Net cash used in investing activities totaled $1.69 billion in 2023, compared with $1.55 billion in 2022.

The increase resulted primarily from an increase in equipment purchases, net of proceeds from the sale of equipment, partially offset by lower business acquisitions in 2023.

The decrease was primarily due to decreased earnings of approximately $157 million and the timing of general working capital activities.

Net cash used in investing activities totaled $664 million in 2024, compared with $1.69 billion in 2023.

The decrease resulted primarily from a decrease in equipment purchases, net of proceeds from the sale of equipment.

Net cash used in financing activities was $826 million in 2024, compared with $58 million in 2023.

This decrease resulted primarily from a decrease in current year treasury stock purchases and the fact that 2022 included the full retirement of our $350 million of 3.30% senior notes that matured in August 2022.

This increase resulted primarily from an increase in current year treasury stock purchases, retirement of long-term debt, and lower net borrowings from revolving lines of credit in 2024.

Our dividend policy is subject to review and revision by the Board of Directors, and payments are dependent upon our financial condition, liquidity, earnings, capital requirements, and other factors the Board of Directors may deem relevant.

We paid a $0.28 per share quarterly dividend in the first quarter of 2021, a $0.30 per share quarterly dividend in the last three quarters of 2021, a $0.40 per share quarterly dividend in 2022, and a $0.42 per share quarterly dividend in 2023.

We paid a $0.42 per share quarterly dividend in 2023 and a $0.43 per share quarterly dividend in 2024.

On January 23, 2025, we announced an increase in our quarterly cash dividend from $0.43 to $0.44 per share, which was paid February 21, 2025, to shareholders of record on February 7, 2025.

5 unchanged sentences

We have also periodically utilized operating leases to acquire revenue equipment.

For our senior notes maturing in 2024, it is our intent to pay the entire outstanding balances in full, on or before the maturity dates, using our existing cash balance, revolving line of credit or other sources of long-term financing.

For our senior credit facility term loans maturing in 2025, it is our intent to pay the entire outstanding balances in full, on or before the maturity dates, using our existing cash balance, revolving line of credit or other sources of long-term financing.

We believe our liquid assets, cash generated from operations, and revolving line of credit will provide sufficient funds for our operating and capital requirements for the foreseeable future.

10 unchanged sentences

Our second largest cost item is salaries and wages, the largest portion of which is driver pay, which includes a large variable component.

Our senior notes consist of two separate issuances.

The first is $250 million of 3.85% senior notes due March 2024, which was issued in March 2014.

Interest payments under these notes are due semiannually in March and September of each year, beginning September 2014.

The second is $700 million of 3.875% senior notes due March 2026, issued in March 2019.

Our senior notes consist of $700 million of 3.875% senior notes due March 2026, issued in March 2019.

Interest payments under these notes are due semiannually in March and September of each year, beginning September 2019.

These senior notes were issued by J.B.

Hunt Transport Services, Inc., a parent-level holding company with no significant tangible assets or operations.

The notes are guaranteed on a full and unconditional basis by our wholly-owned operating subsidiary.

All other subsidiaries of the parent are minor.

We registered these offerings and the sale of the notes under the Securities Act of 1933, pursuant to a shelf registration statement filed in January 2019.

These notes are unsecured obligations and rank equally with our existing and future senior unsecured debt.

We may redeem for cash some or all of the notes based on a redemption price set forth in the note indenture.

Our $250 million of 3.85% senior notes matured in March 2024.

The entire outstanding balance was paid in full at maturity.

Our financing arrangements require us to maintain certain covenants and financial ratios.

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity