JBHT » Topics » Revenue Equipment

These excerpts taken from the JBHT 10-K filed Feb 27, 2009.

Revenue Equipment

 

Our JBI segment utilizes high-cube containers, which can be separated from the chassis and double-stacked on rail cars.  We continue the process of expanding our container fleet and reconditioning our chassis fleet.  The composition of our DCS trailing fleet also varies with specific customer requirements and may include dry-vans, flatbeds, temperature-controlled, curtain-side vans, straight trucks and dump trailers.  Our JBT segment operates primarily with 53-foot dry-van trailers.  We continue to execute our strategy of reducing the size of the JBT segment.  We primarily utilize third-party carriers’ tractor and trailing equipment for our ICS segment; however, certain loads will utilize third-party carriers’ tractors powering our trailing equipment.

 

As of December 31, 2008, our company-owned tractor and truck fleet consisted of 9,067 units.  In addition, we had 912 independent contractors, who operate their own tractors, but transport freight in our trailing equipment.  We operate with standardized tractors in as many fleets as possible, particularly in our JBI and JBT fleets.  Based on our customers’ preferences and the actual business application, our DCS fleet is extremely diversified.  We believe operating with relatively newer revenue equipment provides better customer service, attracts quality drivers and lowers maintenance expense.  At December 31, 2008, the average age of our combined tractor fleet was 3.3 years, our containers averaged 5.3 years of age and our trailers averaged 7.2 years.  We perform routine servicing and preventive maintenance on our equipment at most of our regional terminal facilities.

 

Effective with model-year 2007 tractors, the EPA mandated lower emission standards for newly manufactured heavy-duty tractor engines.  The 2007 EPA-compliant engines show a slight reduction in miles per gallon and an increase in operating costs.  Further, the acquisition costs of these new engines have increased by approximately 10%.  A new set of more stringent emissions standards will become effective for newly manufactured tractor engines in January 2010.

 

6



Revenue Equipment



 



Our
JBI segment utilizes high-cube containers, which can be separated from the
chassis and double-stacked on rail cars. 
We continue the process of expanding our container fleet and
reconditioning our chassis fleet.  The
composition of our DCS trailing fleet also varies with specific customer
requirements and may include dry-vans, flatbeds, temperature-controlled, curtain-side
vans, straight trucks and dump trailers. 
Our JBT segment operates primarily with 53-foot dry-van trailers.  We continue to execute our strategy of
reducing the size of the JBT segment.  We
primarily utilize third-party carriers’ tractor and trailing equipment for our
ICS segment; however, certain loads will utilize third-party carriers’ tractors
powering our trailing equipment.



 



As
of December 31, 2008, our company-owned tractor and truck fleet consisted
of 9,067 units.  In addition, we had 912
independent contractors, who operate their own tractors, but transport freight
in our trailing equipment.  We operate
with standardized tractors in as many fleets as possible, particularly in our
JBI and JBT fleets.  Based on our
customers’ preferences and the actual business application, our DCS fleet is
extremely diversified.  We believe
operating with relatively newer revenue equipment provides better customer
service, attracts quality drivers and lowers maintenance expense.  At December 31, 2008, the average age of
our combined tractor fleet was 3.3 years, our containers averaged 5.3 years of
age and our trailers averaged 7.2 years. 
We perform routine servicing and preventive maintenance on our equipment
at most of our regional terminal facilities.



 



Effective
with model-year 2007 tractors, the EPA mandated lower emission standards for
newly manufactured heavy-duty tractor engines. 
The 2007 EPA-compliant engines show a slight reduction in miles per
gallon and an increase in operating costs. 
Further, the acquisition costs of these new engines have increased by
approximately 10%.  A new set of more
stringent emissions standards will become effective for newly manufactured
tractor engines in January 2010.



 



6














Revenue Equipment

 

We operate a significant number of tractors, trucks, containers and trailers in connection with our business.  This equipment may be purchased or acquired under operating lease agreements.  In addition, we may rent revenue equipment from third parties and various railroads under short-term rental arrangements.  Revenue equipment that is purchased is depreciated on the straight-line method over the estimated useful life down to an estimated salvage or trade-in value.  We periodically review the useful lives and salvage values of our revenue equipment and evaluate our long-lived assets for impairment.  See Note 2, Summary of Significant Accounting Policies, in our Consolidated Financial Statements, for a discussion of our plan to sell certain revenue equipment.  We have not identified any impairment to our remaining assets at December 31, 2008.

 

We have an agreement with our primary tractor supplier for residual or trade-in values for certain new equipment.  We have utilized these trade-in values, as well as other operational information such as anticipated annual miles, in accounting for depreciation expense.  If our tractor supplier were unable to perform under the terms of our agreement for trade-in values, it could have a material adverse effect on our financial results.

 

Revenue Equipment



 



We operate a significant number of tractors, trucks, containers and
trailers in connection with our business. 
This equipment may be purchased or acquired under operating lease
agreements.  In addition, we may rent
revenue equipment from third parties and various railroads under short-term
rental arrangements.  Revenue equipment
that is purchased is depreciated on the straight-line method over the estimated
useful life down to an estimated salvage or trade-in value.  We periodically review the useful lives and
salvage values of our revenue equipment and evaluate our long-lived assets for
impairment.  See Note 2, Summary of
Significant Accounting Policies, in our Consolidated Financial Statements, for
a discussion of our plan to sell certain revenue equipment.  We have not identified any impairment to our
remaining assets at December 31, 2008.



 



We have an agreement with our primary tractor supplier for residual or
trade-in values for certain new equipment. 
We have utilized these trade-in values, as well as other operational
information such as anticipated annual miles, in accounting for depreciation
expense.  If our tractor supplier were
unable to perform under the terms of our agreement for trade-in values, it
could have a material adverse effect on our financial results.



 



These excerpts taken from the JBHT 10-K filed Feb 29, 2008.

Revenue Equipment

 

        We operate a significant number of tractors, trucks, trailers and containers in connection with our business.  This equipment may be purchased or acquired under capital or operating lease agreements.  In addition, we may rent revenue equipment from third parties and various railroads under short-term rental arrangements.  Revenue equipment which is purchased is depreciated on the straight-line method over the estimated useful life down to an estimated salvage or trade-in value.  We periodically review the useful lives and salvage values of our revenue equipment and evaluate our long-lived assets for impairment.  See Note 2, Summary of Significant Accounting Policies, in our Consolidated Financial Statements, for a discussion of our plan to sell certain revenue equipment.  We have not identified any impairments to our remaining assets.

 

        We have an agreement with our primary tractor supplier for residual or trade-in values for certain new equipment.  We have utilized these trade-in values, as well as other operational information, such as anticipated annual miles, in accounting for depreciation expense.  If our tractor supplier were unable to perform under the terms of our agreement for trade-in values, it could have a material negative impact on our financial results.  We had no revenue equipment under capital lease arrangements at December 31, 2007 and 2006.

 

Revenue Equipment



 



        We operate a significant
number of tractors, trucks, trailers and containers in connection with our
business.  This equipment may be
purchased or acquired under capital or operating lease agreements.  In addition, we may rent revenue equipment
from third parties and various railroads under short-term rental
arrangements.  Revenue equipment which is
purchased is depreciated on the straight-line method over the estimated useful
life down to an estimated salvage or trade-in value.  We periodically review the useful lives and
salvage values of our revenue equipment and evaluate our long-lived assets for
impairment.  See Note 2, Summary of
Significant Accounting Policies, in our Consolidated Financial Statements, for
a discussion of our plan to sell certain revenue equipment.  We have not identified any impairments to our
remaining assets.



 



        We have an agreement with our
primary tractor supplier for residual or trade-in values for certain new
equipment.  We have utilized these
trade-in values, as well as other operational information, such as anticipated
annual miles, in accounting for depreciation expense.  If our tractor supplier were unable to
perform under the terms of our agreement for trade-in values, it could have a
material negative impact on our financial results.  We had no revenue equipment under capital
lease arrangements at December 31, 2007 and 2006.



 



This excerpt taken from the JBHT 10-K filed Feb 28, 2007.

Revenue Equipment

We operate a significant number of tractors, trailers and containers in connection with our business.  This equipment may be purchased or acquired under capital or operating lease agreements.  In addition, we may rent revenue equipment from third parties and various railroads under short-term rental arrangements.  Revenue equipment which is purchased is depreciated on the straight-line method over the estimated useful life down to an estimated salvage or trade-in value.  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 impairments to our existing assets.

We have an agreement with our primary tractor supplier for residual or trade-in values for certain new equipment.  We have utilized these trade-in values as well as other operational information, such as anticipated annual miles, in accounting for depreciation expense.  If our tractor supplier were unable to perform under the terms of our agreement for trade-in values, it could have a material negative impact on our financial results.  We had no revenue equipment under capital lease arrangements at December 31, 2006 and 2005.

This excerpt taken from the JBHT 10-Q filed Oct 31, 2006.

Revenue Equipment

We operate a significant number of tractors, trucks, containers and trailers in connection with our business. This equipment is generally purchased or may be acquired under capital or operating lease agreements. In addition, we may rent revenue equipment from third parties and various railroads under short-term rental arrangements. Revenue equipment which is purchased is depreciated using the straight-line method over the estimated useful life down to an estimated salvage or trade-in value. 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 impairments to our existing assets.

We have an agreement with our primary tractor supplier for guaranteed residual or trade-in values for certain new equipment. We have utilized these guaranteed trade-in values as well as other operational information, such as anticipated annual miles, in accounting for depreciation expense. If our tractor supplier were unable to perform under the terms of our agreement for guaranteed trade-in values, it could have a material negative impact on our financial results. We had no revenue equipment under capital lease arrangements at September 30, 2006.

This excerpt taken from the JBHT 10-Q filed Jul 31, 2006.

Revenue Equipment

We operate a significant number of tractors, trucks, containers and trailers in connection with our business.  This equipment is generally purchased or may be acquired under capital or operating lease agreements.  In addition, we may rent revenue equipment from third parties and various railroads under short-term rental arrangements.  Revenue equipment which is purchased is depreciated on the straight-line method over the estimated useful life down to an estimated salvage or trade-in value.  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 impairments to our existing assets.

We have an agreement with our primary tractor supplier for guaranteed residual or trade-in values for certain new equipment.  We have utilized these guaranteed trade-in values as well as other operational information, such as anticipated annual miles, in accounting for depreciation expense.  If our tractor supplier were unable to perform under the terms of our agreement for guaranteed trade-in values, it could have a material negative impact on our financial results.  We had no revenue equipment under capital lease arrangements at June 30, 2006.

This excerpt taken from the JBHT 10-Q filed Apr 28, 2006.

Revenue Equipment

 

We operate a significant number of tractors, trailers and containers in connection with our business.  This equipment may be purchased or acquired under capital or operating lease agreements.  In addition, we may rent revenue equipment from third parties and various railroads under short-term rental arrangements.  Revenue equipment which is purchased is depreciated on the straight-line method over the estimated useful life down to an estimated salvage or trade-in value.  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 impairments to our existing assets.

 

We have an agreement with our primary tractor supplier for guaranteed residual or trade-in values for certain new equipment.  We have utilized these guaranteed trade-in values as well as other operational information, such as anticipated annual miles, in accounting for depreciation expense.  If our tractor supplier were unable to perform under the terms of our agreement for guaranteed trade-in values, it could have a material negative impact on our financial results.  We had no revenue equipment under capital lease arrangements at March 31, 2006.

 

This excerpt taken from the JBHT 10-K filed Mar 10, 2006.

Revenue Equipment

 

We operate a significant number of tractors, trailers and containers in connection with our business. This equipment may be purchased or acquired under capital or operating lease agreements. In addition, we may rent revenue equipment from third parties and various railroads under short-term rental arrangements. Revenue equipment which is purchased is depreciated on the straight-line

 

16



 

method over the estimated useful life down to an estimated salvage or trade-in value. We had no revenue equipment under capital lease arrangements at December 31, 2005.

 

We have an agreement with our primary tractor supplier for residual or trade-in values for certain new equipment. We have utilized these trade-in values as well as other operational information, such as anticipated annual miles, in accounting for depreciation expense. If our tractor supplier were unable to perform under the terms of our agreement for trade-in values, it could have a material negative impact on our financial results. 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 impairments to our existing assets.

 

This excerpt taken from the JBHT 10-Q filed Oct 31, 2005.

Revenue Equipment

 

We operate a significant number of tractors, trailers and containers in connection with our business.  This equipment may be purchased or acquired under capital or operating lease agreements.  In addition, we may rent revenue equipment from third parties and various railroads under short-term rental arrangements.  Revenue equipment which is purchased is depreciated on the straight-line method over the estimated useful life down to an estimated salvage or trade-in value.  Equipment acquired under capital leases is initially recorded at the net present value of the minimum lease payments and amortized on the straight-line method over the lease term or the estimated useful life, whichever is shorter.  We had no revenue equipment under capital lease arrangements at September 30, 2005.

 

We have an agreement with our primary tractor supplier for guaranteed residual or trade-in values for certain new equipment acquired since 1999.  We have utilized the guaranteed trade-in values as well as other operational information, such as anticipated annual miles, in accounting for purchased tractors.  If our tractor supplier was unable to perform under the terms of our agreement for guaranteed trade-in values, it could have a materially negative impact on our financial results.

 

This excerpt taken from the JBHT 10-Q filed Jul 22, 2005.

Revenue Equipment

 

We operate a significant number of tractors, trailers and containers in connection with our business.  This equipment may be purchased or acquired under capital or operating lease agreements.  In addition, we may rent revenue equipment from third parties and various railroads under short-term rental arrangements.  Revenue equipment which is purchased is depreciated on the straight-line method over the estimated useful life down to an estimated salvage or trade-in value.  Equipment acquired under capital leases is initially recorded at the net present value of the minimum lease payments and amortized on the straight-line method over the lease term or the estimated useful life, whichever is shorter.  We had no revenue equipment under capital lease arrangements at June 30, 2005.

 

We have an agreement with our primary tractor supplier for guaranteed residual or trade-in values for certain new equipment acquired since 1999.  We have utilized the guaranteed trade-in values as well as other operational information, such as anticipated annual miles, in accounting for purchased and leased tractors.  If our tractor supplier was unable to perform under the terms of our agreement for guaranteed trade-in values, it could have a materially negative impact on our financial results.

 

This excerpt taken from the JBHT 10-Q filed Apr 29, 2005.

Revenue Equipment

 

We operate a significant number of tractors, trailers and containers in connection with our business.  This equipment may be purchased or acquired under capital or operating lease agreements.  In addition, we may rent revenue equipment from third parties and various railroads under short-term rental arrangements.  Revenue equipment which is purchased is depreciated on the straight-line method over the estimated useful life down to an estimated salvage or trade-in value.  Equipment acquired under capital leases is initially recorded at the net present value of the minimum lease payments and amortized on the straight-line method over the lease term or the estimated useful life, whichever is shorter.

 

We have an agreement with our primary tractor supplier for guaranteed residual or trade-in values for certain new equipment acquired since 1999.  We have utilized the guaranteed trade-in values as well as other operational information, such as anticipated annual miles, in accounting for purchased and leased tractors.  If our tractor supplier was unable to perform under the terms of our agreement for guaranteed trade-in values, it could have a materially negative impact on our financial results.

 

This excerpt taken from the JBHT 10-K filed Mar 11, 2005.

Revenue Equipment

 

We operate a significant number of tractors, trailers and containers in connection with our business.  This equipment may be purchased or acquired under capital or operating lease agreements.  In addition, we may rent revenue equipment from third parties and various railroads under short-term rental arrangements.  Revenue equipment which is purchased is depreciated on the straight-line method over the estimated useful life down to an estimated salvage or trade-in value.  Equipment acquired under capital leases is initially recorded at the net present value of the minimum lease payments and amortized on the straight-line method over the lease term or the estimated useful life, whichever is shorter.  We had no revenue equipment under capital lease arrangements at December 31, 2004.

 

We have an agreement with our primary tractor supplier for guaranteed residual or trade-in values for certain new equipment acquired since 1999.  During the fourth quarter of 2003, we reviewed the useful lives and salvage values of our tractor fleet.  We have utilized the guaranteed trade-in values as well as other operational information, such as anticipated annual miles, in accounting for purchased and leased tractors.  If our tractor supplier was unable to perform under the terms of our agreement for guaranteed trade-in values, it could have a materially negative impact on our financial results.  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 impairments to our existing assets.

 

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