JB Hunt Annual Report 2012

FY2012 Annual Report · JB Hunt
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J . B .   H U N T   T R A N S P O R T   S E R V I C E S ,   I N C . 

2012

NOTICE OF ANNUAL MEETING, PROXY STATEMENT 
AND ANNUAL REPORT

TABLE OF CONTENTS

LETTER TO OUR STOCKHOLDERS 

NOTICE OF ANNUAL MEETING  
    OF STOCKHOLDERS 

PROXY STATEMENT 

Questions and Answers About the Proxy Materials  
    and the Annual Meeting 

Proposal Number One – Election of Directors 

Information About the Board 

Nominees for Director 

Director Compensation 

Executive Ofﬁcers of the Company 

Security Ownership of Management 

Corporate Governance 

Audit Committee 

Executive Compensation Committee 

Nominating and Corporate Governance Committee 

Principal Stockholders of the Company 

Report of the Executive Compensation Committee 

Compensation Discussion and Analysis 

Process of Setting Compensation 

2012 Compensation 

Summary Compensation 

Grants of Plan-Based Awards 

Outstanding Equity Awards at Calendar Year-end 

Options Exercised and Restricted Share Units Vested 

Nonqualiﬁed Deferred Compensation 

Potential Post-Employment Beneﬁts 

Report of the Audit Committee 

Proposal Number Two – Ratiﬁcation of Independent  
    Registered Public Accounting Firm 

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2012 ANNUAL REPORT 

PART I

Item 1.  Business 

Item 1A.  Risk Factors 

Item 1B.  Unresolved Staff Comments 

Item 2.  Properties 

Item 3.  Legal Proceedings 

Item 4.  Mine Safety Disclosures 

PART II

Item 5.  Market for Registrant’s Common Equity,  
Related Stockholder Matters and Issuer  
Purchases of Equity Securities 

Stock Performance Graph 

Item 6.  Selected Financial Data 

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Item 7.  Management’s Discussion and Analysis of  

Financial Condition and Results of Operations 

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Item 7A.  Quantitative and Qualitative Disclosures About 

Market Risk 

Item 8.  Financial Statements and Supplementary Data 

Item 9.  Changes in and Disagreements with Accountants  
on Accounting and Financial Disclosure 

Item 9A.  Controls and Procedures 

Item 9B.  Other Information 

PART III

Item 10.  Directors, Executive Ofﬁcers and  
Corporate Governance 

Item 11.  Executive Compensation 

Item 12.  Security Ownership of Certain Beneﬁcial  

Owners and Management and Related  
Stockholder Matters 

Item 13.  Certain Relationships and Related Transactions,  

and Director Independence 

Item 14.  Principal Accounting Fees and Services 

PART IV

Item 15.  Exhibits, Financial Statement Schedules 

Signatures 

Exhibit Index 

Index to Consolidated Financial Information 

CORPORATE INFORMATION

Directors   

Ofﬁcers 

Stockholder Information 

Revenue by Industry 

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TO THE STOCKHOLDERS OF J.B. HUNT TRANSPORT SERVICES, INC.

We are pleased to report that 2012 was the best year in the Company’s 29 years since our Initial Public Offering of stock in 1983. 

Following a record-setting 2011, we again surpassed milestones in critical ﬁnancial, operational and customer development objectives. 
These included record total revenue, record operating income and record earnings per share. Load and stop volumes grew year over year in 
each business. Our measurement of customer retention improved across all four segments with customers who were active in the prior year, 
an indication that we are meeting or exceeding requirements at levels sufﬁcient to keep and grow their business. Customer relationships 
also expanded with new accounts as the approach of integrating the sales and marketing of non-asset, asset-light and full-asset services 
continued to make progress. 

2012 Financial Results

Total revenue exceeded $5 billion, operating income improved to more than $530 million and earnings per share increased to $2.59, 
all record levels for J.B. Hunt. We generated over $750 million in EBITDA, invested a net $370 million in capital equipment and assets, and 
paid $83 million in ordinary dividends (including pulling ahead one quarter for stockholder tax beneﬁt). We reduced our debt by $64 million, 
repurchased $50 million of our common stock at an average price of $58.89 and added more than 800 net new employees in 2012. 

We remain committed to a disciplined and ﬁnancial return-based approach for managing and growing the Company, driven by the 
requirements of our customers and executed by the remarkably capable people of J.B. Hunt. By listening to our customers and doing a great 
job for them, we are developing the services they need for which they are willing to pay fair rates on good terms. This model generates the 
appropriate ﬁnancial returns required for growth and reinvestment. We recognize and thank all of our talented and loyal employees for their 
effort and the great results of 2012.

JBI 

During 2012, JBI eclipsed another signiﬁcant milestone by moving over 1 million loaded units with BNSF. Experiencing solid customer 
demand, we increased JBI assets by growing all components of the ﬂeet, including containers, chassis and tractors. Improvements to service 
on our rail providers coupled with an intense focus on increasing efﬁciencies in operations and dray activities delivered higher equipment 
velocity.  Fleet  capacity  expansion,  improving  service  levels  and  increasing  equipment  turns  all  enhance  our  reach  for  intermodal  lane 
expansion  to  capture  more  highway  business.  We  are  encouraged  by  the  success  of  our  primary  rail  partners  and  we  look  forward  to 
continued investment within each area of our joint services during what we see as ongoing conversion from highway to intermodal in the 
coming years. 

DCS

We have two primary strategies in DCS: creating and converting private ﬂeets and expanding Final Mile Services. We continue to make 
progress in both categories. First, we received several larger-than-usual ﬂeet awards during 2012. These new ﬂeets began implementation 
in the second half of 2012 and will continue through the ﬁrst half of 2013. Second, we added six new customers to the Final Mile Services 
network during the year. Additionally, all customers within the network expanded their business with us. We continue to focus on the 
customer experience in Final Mile Services and the enhancement of our planning, technology, training and “end user” culture. All this is 
being done in preparation for what we think is a promising growth area, particularly with the continuing increase in online shopping and 
the need for home delivery and installation of big and bulky items such as appliances and furniture. 

ICS

As planned, we opened four new outside branches in 2012, augmenting our reach with customers and partner carriers. Our intermediate 
goal is to build an outside branch network of 25 unique ofﬁces. The service offerings in ICS continue to strengthen across our customers’ 
ever-changing supply chains as we gain experience in TL, LTL, refrigerated, expedited, special projects and ﬂatbed services. Marketing 
efforts in ICS focus on new customers and developing expanded revenue streams. This not only fortiﬁes the independent business of ICS, 
through intentional cross-selling, we generate growth in the other three segments of the Company as well. 

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JBT

Assets in JBT decreased throughout the year in response to an ongoing struggle to achieve acceptable, sustainable proﬁtability. Overall 
demand  for  generic  truckload  services  has  not  shown  signs  of  stabilizing  over  the  past  three  years.  Continued  efforts  to  ﬁnd  the  right 
business model with the correct blend of capacity and rate structure are supported by management. We do believe that offering a relevant 
truckload service in lanes where intermodal, dedicated or brokerage are not the best solutions will be valuable and differentiating. 

Strategic Initiatives

Customer  Diversification:  While  focusing  on  customer  retention  and  growth,  we  are  simultaneously  working  toward  customer 
diversiﬁcation. Our goal is to add new clients and widen the span of revenue creation across a broader base while maintaining and growing 
our existing accounts. Additionally, we have developed a Customer Scorecard to guide us in evaluating the quality of each customer proﬁle. 
Some of the data here include buying practices, payment terms, claims and percentage of total spend with J.B. Hunt.

Operational Infrastructure: Our maintenance and properties requirements have evolved over the years and we are currently evaluating all 
locations for improved efﬁciency and relevant placement. Our analyses include proper utilization and cost effectiveness in ongoing maintenance 
schedules, adequate yard space for equipment, location and stem miles to and from intermodal ramps and dedicated customer sites. 

Technology:  We  currently  have  a  number  of  technology-based  initiatives,  including  a  comprehensive  review  of  our  global  database 
strategies, conversion of our sales management and HR software, enhancement of our Final Mile Services planning, routing and delivery 
systems and implementation of electronic on-board recorders for all tractors. We are also introducing a new system in ICS for managing our 
brokerage business and outside carriers. Efforts to maximize our self-service Internet capabilities for our customers and carriers, enhancing 
the use of social media and other emerging ideas are all in scope for the coming years.

We are pleased with the journey so far. Still, there is ample room for improvement on many fronts. The opportunities presented in 
highway-to-intermodal conversion, private ﬂeet outsourcing, Final Mile Services, and the management and brokerage of customers’ freight 
are plentiful. We remain conﬁdent that we will ﬁnd the right blend of assets and services to present a compelling and viable answer to the 
asset-based truckload needs of our customers. 

Again, we thank our employees for their crisp execution and commitment to excellence. We thank our customers for their patronage 

and trust. And we thank our stockholders for your investment and ongoing conﬁdence. 

John N. Roberts, III 
President & Chief Executive Ofﬁcer 

Kirk Thompson
Chairman of the Board

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J.B. HUNT TRANSPORT SERVICES, INC.
615 J.B. Hunt Corporate Drive
Lowell, Arkansas 72745
479-820-0000
Internet Site: www.jbhunt.com
_____________________________________________________________________________

NOTICE OF ANNUAL MEETING OF STOCKHOLDERS

To Be Held April 25, 2013
____________________________________________________________________________

The Annual Meeting of Stockholders of J.B. Hunt Transport Services, Inc. (the “Company”) will be held April 25, 2013, at 10 a.m. (CDT) at 

the Company’s headquarters, located at 615 J.B. Hunt Corporate Drive in Lowell, Arkansas, for the following purposes:

(1) To elect Directors for a term of one (1) year 

(2) To ratify the appointment of Ernst & Young LLP as the Company’s independent registered public accounting ﬁrm for the 2013 calendar year

(3) To transact such other business as may properly come before the Annual Meeting or any adjournments thereof

Only stockholders of record on February 14, 2013, will be entitled to vote at the meeting or any adjournments thereof. The stock transfer books 

will not be closed.

The 2012 Annual Report to Stockholders is included in this publication.

Lowell, Arkansas

March 15, 2013

By Order of the Board of Directors

DAVID G. MEE

Corporate Secretary

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YOUR VOTE IS IMPORTANT
PLEASE EXECUTE YOUR PROXY WITHOUT DELAY 

J.B. HUNT TRANSPORT SERVICES, INC.
615 J.B. Hunt Corporate Drive
Lowell, Arkansas 72745
479-820-0000
Internet Site: www.jbhunt.com 
_____________________________________________________________________________

PROXY STATEMENT
_____________________________________________________________________________

This Proxy Statement is furnished in connection with the solicitation of proxies by J.B. Hunt Transport Services, Inc. (the “Company”), on 
behalf of its Board of Directors (the “Board”), for the 2013 Annual Meeting of Stockholders (the “Annual Meeting”). The Proxy Statement and 
the related proxy card are being distributed on or about March 15, 2013.

IMPORTANT NOTICE REGARDING THE AVAILABILITY OF
PROXY MATERIALS FOR THE STOCKHOLDERS MEETING
TO BE HELD APRIL 25, 2013

This Proxy Statement and our 2012 Annual Report to Stockholders, which includes our Annual Report on Form 10-K, are available at  

www.jbhunt.com.

QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND
THE ANNUAL MEETING

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When And Where Is The Annual Meeting?

Date: 
Time: 
Location: 

Thursday, April 25, 2013
10 a.m., Central Daylight Time
J.B. Hunt Transport Services, Inc.
Corporate Ofﬁces
First-Floor Auditorium
615 J.B. Hunt Corporate Drive
Lowell, Arkansas 72745

What Matters Will Be Voted Upon At The Annual Meeting?

At the Annual Meeting, you will be asked to:

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(cid:85)(cid:202)(cid:202)(cid:10)(cid:156)(cid:152)(cid:195)(cid:136)(cid:96)(cid:105)(cid:192)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:219)(cid:156)(cid:204)(cid:105)(cid:202)(cid:213)(cid:171)(cid:156)(cid:152)(cid:202)(cid:62)(cid:202)(cid:171)(cid:192)(cid:156)(cid:171)(cid:156)(cid:195)(cid:62)(cid:143)(cid:202)(cid:204)(cid:156)(cid:202)(cid:105)(cid:143)(cid:105)(cid:86)(cid:204)(cid:202)(cid:152)(cid:156)(cid:147)(cid:136)(cid:152)(cid:105)(cid:105)(cid:195)(cid:202)(cid:12)(cid:156)(cid:213)(cid:125)(cid:143)(cid:62)(cid:195)(cid:202)(cid:20)(cid:176)(cid:202)(cid:12)(cid:213)(cid:152)(cid:86)(cid:62)(cid:152)(cid:93)(cid:202)(cid:19)(cid:192)(cid:62)(cid:152)(cid:86)(cid:105)(cid:195)(cid:86)(cid:62)(cid:202)(cid:31)(cid:176)(cid:202)(cid:13)(cid:96)(cid:220)(cid:62)(cid:192)(cid:96)(cid:195)(cid:156)(cid:152)(cid:93)(cid:202)(cid:55)(cid:62)(cid:222)(cid:152)(cid:105)(cid:202)(cid:20)(cid:62)(cid:192)(cid:192)(cid:136)(cid:195)(cid:156)(cid:152)(cid:93)(cid:202)(cid:45)(cid:133)(cid:62)(cid:192)(cid:136)(cid:143)(cid:222)(cid:152)(cid:202)(cid:45)(cid:176)(cid:202)(cid:20)(cid:62)(cid:195)(cid:62)(cid:220)(cid:62)(cid:222)(cid:93)(cid:202)
Gary C. George, Bryan Hunt, Coleman H. Peterson, John N. Roberts, III, James L. Robo, Kirk Thompson, and John A. White as directors 
to hold ofﬁce for a term of one year, expiring at the close of the Annual Meeting of Stockholders in 2014. 

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public accounting ﬁrm for the 2013 calendar year.

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What Constitutes A Quorum?

The presence, either in person or by proxy, of the holders of at least a majority of our issued and outstanding shares of common stock entitled 
to vote is required to constitute a quorum for the transaction of business at the Annual Meeting. Abstentions and broker non-votes, which are 
described in more detail below, are counted as shares present at the Annual Meeting for purposes of determining whether a quorum exists.

Who Is Entitled To Vote?

Only stockholders of record of the Company’s common stock at the close of business on Thursday, February 14, 2013, which is the “record 

date,” are entitled to notice of, and to vote at, the Annual Meeting. Shares that may be voted include shares that are held:

(1)   directly by the stockholder of record, and
(2)   beneﬁcially through a broker, bank or other nominee.

Each share of our common stock will be entitled to one vote on all matters submitted for a vote at the Annual Meeting.

As of the record date, there were 117,549,810 shares of our common stock issued and outstanding and entitled to be voted at the Annual Meeting.

What Is The Difference Between Holding Shares As A “Registered Owner” And A “Beneﬁcial Owner”?
  Most of the Company’s stockholders hold their shares through a broker, bank or other nominee rather than directly in their own name. As 
summarized below, there are some distinctions between registered shares and those owned beneﬁcially:

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(cid:85)(cid:202)(cid:202)(cid:44)(cid:105)(cid:125)(cid:136)(cid:195)(cid:204)(cid:105)(cid:192)(cid:105)(cid:96)(cid:202)(cid:34)(cid:220)(cid:152)(cid:105)(cid:192)(cid:195)(cid:202)(cid:113)(cid:202)(cid:22)(cid:118)(cid:202)(cid:222)(cid:156)(cid:213)(cid:192)(cid:202)(cid:195)(cid:133)(cid:62)(cid:192)(cid:105)(cid:195)(cid:202)(cid:62)(cid:192)(cid:105)(cid:202)(cid:192)(cid:105)(cid:125)(cid:136)(cid:195)(cid:204)(cid:105)(cid:192)(cid:105)(cid:96)(cid:202)(cid:96)(cid:136)(cid:192)(cid:105)(cid:86)(cid:204)(cid:143)(cid:222)(cid:202)(cid:136)(cid:152)(cid:202)(cid:222)(cid:156)(cid:213)(cid:192)(cid:202)(cid:152)(cid:62)(cid:147)(cid:105)(cid:202)(cid:220)(cid:136)(cid:204)(cid:133)(cid:202)(cid:156)(cid:213)(cid:192)(cid:202)(cid:204)(cid:192)(cid:62)(cid:152)(cid:195)(cid:118)(cid:105)(cid:192)(cid:202)(cid:62)(cid:125)(cid:105)(cid:152)(cid:204)(cid:93)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:213)(cid:204)(cid:105)(cid:192)(cid:195)(cid:133)(cid:62)(cid:192)(cid:105)(cid:202)(cid:47)(cid:192)(cid:213)(cid:195)(cid:204)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:202)(cid:32)(cid:176)(cid:1)(cid:176)(cid:93)(cid:202)(cid:222)(cid:156)(cid:213)(cid:202)
are, with respect to those shares, the stockholder of record. As the stockholder of record, you have the right to grant your voting proxy 
directly to the Company or to vote in person at the Annual Meeting.

(cid:85)(cid:202)(cid:202)(cid:9)(cid:105)(cid:152)(cid:105)(cid:119)(cid:86)(cid:136)(cid:62)(cid:143)(cid:202)(cid:34)(cid:220)(cid:152)(cid:105)(cid:192)(cid:195)(cid:202)(cid:113)(cid:202)(cid:22)(cid:118)(cid:202)(cid:222)(cid:156)(cid:213)(cid:192)(cid:202)(cid:195)(cid:133)(cid:62)(cid:192)(cid:105)(cid:195)(cid:202)(cid:62)(cid:192)(cid:105)(cid:202)(cid:133)(cid:105)(cid:143)(cid:96)(cid:202)(cid:136)(cid:152)(cid:202)(cid:62)(cid:202)(cid:76)(cid:192)(cid:156)(cid:142)(cid:105)(cid:192)(cid:62)(cid:125)(cid:105)(cid:202)(cid:62)(cid:86)(cid:86)(cid:156)(cid:213)(cid:152)(cid:204)(cid:93)(cid:202)(cid:76)(cid:62)(cid:152)(cid:142)(cid:202)(cid:156)(cid:192)(cid:202)(cid:76)(cid:222)(cid:202)(cid:62)(cid:152)(cid:156)(cid:204)(cid:133)(cid:105)(cid:192)(cid:202)(cid:152)(cid:156)(cid:147)(cid:136)(cid:152)(cid:105)(cid:105)(cid:93)(cid:202)(cid:222)(cid:156)(cid:213)(cid:202)(cid:62)(cid:192)(cid:105)(cid:93)(cid:202)(cid:220)(cid:136)(cid:204)(cid:133)(cid:202)(cid:192)(cid:105)(cid:195)(cid:171)(cid:105)(cid:86)(cid:204)(cid:202)(cid:204)(cid:156)(cid:202)(cid:204)(cid:133)(cid:156)(cid:195)(cid:105)(cid:202)(cid:195)(cid:133)(cid:62)(cid:192)(cid:105)(cid:195)(cid:93)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)
“beneﬁcial owner” of shares held in “street name.” As the beneﬁcial owner, you have the right to direct your broker, bank or other nominee 
on how to vote or to vote in person at the Annual Meeting. However, since you are not a stockholder of record, you may not vote these 
shares in person at the Annual Meeting unless you obtain a “legal proxy” from your broker, bank or other nominee (who is the stockholder 
of record) giving you the right to vote the shares.

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What Stockholder Approval Is Necessary For Approval Of The Proposals?
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Each director shall be elected by a vote of the majority of votes cast with respect to that director. This means that a director must receive 
“for” votes from more than 50% of the number of shares voted with respect to that director. However, if the number of nominees is greater than 
the number of directors to be elected, the directors will be elected by the vote of a plurality of the shares represented in person or by proxy at any 
stockholder meeting.

(cid:202)

(cid:85)(cid:202)(cid:202)(cid:44)(cid:62)(cid:204)(cid:136)(cid:119)(cid:86)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:62)(cid:171)(cid:171)(cid:156)(cid:136)(cid:152)(cid:204)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202)(cid:156)(cid:118)(cid:202)(cid:13)(cid:69)(cid:57)(cid:202)(cid:62)(cid:195)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:136)(cid:152)(cid:96)(cid:105)(cid:171)(cid:105)(cid:152)(cid:96)(cid:105)(cid:152)(cid:204)(cid:202)(cid:192)(cid:105)(cid:125)(cid:136)(cid:195)(cid:204)(cid:105)(cid:192)(cid:105)(cid:96)(cid:202)(cid:171)(cid:213)(cid:76)(cid:143)(cid:136)(cid:86)(cid:202)(cid:62)(cid:86)(cid:86)(cid:156)(cid:213)(cid:152)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:119)(cid:192)(cid:147)

The ratiﬁcation of the Audit Committee’s appointment of E&Y as the Company’s independent registered public accounting ﬁrm requires 
the afﬁrmative vote of a majority of the shares of our common stock cast at the Annual Meeting. For purposes of this vote, a failure to vote, a vote 
to abstain or withholding your vote (or a direction to your broker to do so) are not counted as votes cast and, therefore, will have no effect on the 
outcome of this vote. Stockholder ratiﬁcation is not required for the appointment of the Company’s independent registered public accounting ﬁrm. 
However, we are submitting the proposal to solicit the opinion of our stockholders.

As of the record date, directors and executive ofﬁcers of the Company beneﬁcially owned an aggregate 6,179,658 shares of common stock 
representing 5.3% of our common stock issued and outstanding and, therefore, 5.3% of the voting power entitled to vote at the Annual Meeting. 
The Company believes that its directors and executive ofﬁcers currently intend to vote their shares as follows:

(cid:202)
(cid:202)

(cid:85)(cid:202)(cid:202)(cid:22)(cid:152)(cid:202)(cid:118)(cid:62)(cid:219)(cid:156)(cid:192)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:105)(cid:143)(cid:105)(cid:86)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:156)(cid:118)(cid:202)(cid:96)(cid:136)(cid:192)(cid:105)(cid:86)(cid:204)(cid:156)(cid:192)(cid:195)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:156)(cid:152)(cid:105)(cid:202)(cid:173)(cid:163)(cid:174)(cid:202)(cid:222)(cid:105)(cid:62)(cid:192)
(cid:85)(cid:202)(cid:202)(cid:22)(cid:152)(cid:202)(cid:118)(cid:62)(cid:219)(cid:156)(cid:192)(cid:202) (cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202) (cid:192)(cid:62)(cid:204)(cid:136)(cid:119)(cid:86)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:62)(cid:171)(cid:171)(cid:156)(cid:136)(cid:152)(cid:204)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202)(cid:156)(cid:118)(cid:202)(cid:13)(cid:69)(cid:57)(cid:202)(cid:62)(cid:195)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202) (cid:136)(cid:152)(cid:96)(cid:105)(cid:171)(cid:105)(cid:152)(cid:96)(cid:105)(cid:152)(cid:204)(cid:202) (cid:192)(cid:105)(cid:125)(cid:136)(cid:195)(cid:204)(cid:105)(cid:192)(cid:105)(cid:96)(cid:202)(cid:171)(cid:213)(cid:76)(cid:143)(cid:136)(cid:86)(cid:202)(cid:62)(cid:86)(cid:86)(cid:156)(cid:213)(cid:152)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:119)(cid:192)(cid:147)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202) (cid:211)(cid:228)(cid:163)(cid:206)(cid:202)

calendar year

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May I Vote My Shares In Person At The Annual Meeting?

If you are the registered owner of shares of the Company’s common stock on the record date, you have the right to vote your shares in person 

at the Annual Meeting.

If you are the beneﬁcial owner of shares of the Company’s common stock on the record date, you may vote these shares in person at the 
Annual Meeting if you have requested a legal proxy from your broker, bank or other nominee (the stockholder of record) giving you the right to 
vote the shares at the Annual Meeting, complete such legal proxy and present it to the Company at the Annual Meeting.

Even if you plan to attend the Annual Meeting, we recommend that you submit your proxy card or voting instructions so that your vote will 

be counted if you later decide not to attend the Annual Meeting.

How Can I Vote My Shares Without Attending The Annual Meeting?

If you are a registered owner, you may instruct the named proxy holders on how to vote your shares by completing, signing, dating and 
returning the enclosed proxy card in the postage-paid envelope provided with this Proxy Statement, or by using the Internet voting site or the 
toll-free telephone number listed on the proxy card. Speciﬁc instructions for using the Internet and telephone voting systems are provided on the 
proxy card. The Internet and telephone voting systems will be available until 11:59 p.m. Central Daylight Time on Wednesday, April 24, 2013 
(the day before the Annual Meeting).

If you are the beneﬁcial owner of shares held in “street name,” you should instruct your broker, bank or other nominee on how to vote your 
shares. Your broker, bank or other nominee has enclosed with this Proxy Statement a voting instruction card for you to use in directing your 
nominee on how to vote your shares. The instructions from your nominee will indicate whether Internet or telephone voting is available and, if 
so, will provide details regarding how to use those systems.

If My Shares Are Held In “Street Name,” Will My Broker, Bank Or Other Nominee Vote My Shares For Me?

If you hold shares in street name through a broker, bank or other nominee, your broker, bank or nominee may not be permitted to exercise 
voting discretion with respect to some of the matters to be acted upon at the Annual Meeting. Under current stock exchange rules, brokers who 
do not have instructions from their customers may not use their discretion in voting their customers’ shares on certain speciﬁc matters that are 
not considered to be “routine” matters, including the election of directors, executive compensation and other signiﬁcant matters. The proposal in 
this Proxy Statement to elect directors is not considered to be a routine matter. Therefore, without your speciﬁc instructions, your shares will 
not be voted on this matter and will not be counted in determining the number of shares necessary for approval. Shares represented by such 
“broker non-votes,” however, will be counted in determining whether there is a quorum. You should follow the directions provided by your nominee 
regarding instructions on how to vote your shares.

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The ratiﬁcation of the appointment of E&Y as the Company’s independent registered public accounting ﬁrm is considered a routine matter 
and, therefore, if beneﬁcial owners fail to give voting instructions, brokers, banks and other nominees will have the discretionary authority to vote 
shares of our common stock with respect to this proposal.

What Is A Broker Non-Vote?

Generally, a “broker non-vote” occurs when a broker, bank or other nominee that holds shares in “street name” for a customer is precluded 

from exercising voting discretion on a particular proposal because:

(1)   the beneﬁcial owner has not instructed the nominee on how to vote, and
(2)   the nominee lacks discretionary voting power to vote such issues.

Under NASDAQ rules, a nominee does not have discretionary voting power with respect to the approval of “nonroutine” matters absent 

speciﬁc voting instructions from the beneﬁcial owners of such shares.

How Will My Proxy Be Voted?

Shares represented by a properly executed proxy (in paper form, by Internet or by telephone) that is received in a timely manner, and not 
subsequently revoked, will be voted at the Annual Meeting or any adjournment or postponement thereof in the manner directed on the proxy. 
Kirk Thompson and John N. Roberts, III are named as proxies in the proxy form and have been designated by the Board as the directors’ proxies 
to represent you and vote your shares at the Annual Meeting. All shares represented by a properly executed proxy on which no choice is speciﬁed 
will be voted:

(1)   FOR the election of the nominees for director named in this Proxy Statement
(2)   FOR the ratiﬁcation of the appointment of E&Y as the Company’s independent registered public accounting ﬁrm for the 2013 calendar 
year, and in accordance with the proxy holders’ best judgment as to any other business that properly comes before the Annual Meeting.

This Proxy Statement is considered to be voting instructions for the trustees of the J.B. Hunt Transport Services, Inc. Employee Retirement 
Plan for our common stock allocated to individual accounts under this plan. If account information is the same, participants in the plan (who are 
stockholders of record) will receive a single proxy representing all of their shares. If a plan participant does not submit a proxy to us, the trustees 

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of the plan in which shares are allocated to his or her individual account will vote such shares in the same proportion as the total shares in such 
plan for which directions have been received.

May I Revoke My Proxy And Change My Vote?

Yes. You may revoke your proxy and change your vote at any time prior to the vote at the Annual Meeting.

If you are the registered owner, you may revoke your proxy and change your vote by:

(1)   submitting a new proxy bearing a later date (which automatically revokes the earlier proxy),
(2)   giving notice of your changed vote to us in writing mailed to the attention of David G. Mee, Corporate Secretary, at our executive 

ofﬁces, or

(3)   attending the Annual Meeting and giving oral notice of your intention to vote in person.

You should be aware that simply attending the Annual Meeting will not in and of itself constitute a revocation of your proxy.

Who Will Pay The Costs Of Soliciting Proxies?

Proxies  will  be solicited initially by  mail.  Further solicitation may be made in person or by telephone, electronic mail or facsimile. The 
Company will bear the expense of preparing, printing and mailing this Proxy Statement and accompanying materials to our stockholders. Upon 
request, the Company will reimburse brokers, banks and other nominees for reasonable expenses incurred in forwarding copies of the proxy materials 
relating to the Annual Meeting to the beneﬁcial owners of our common stock.

In 2012, the Company retained Broadridge, an independent proxy solicitation ﬁrm, to assist in soliciting proxies from stockholders. Broadridge 
received a fee of approximately $48,000 as compensation for its services and was reimbursed for its out-of-pocket expenses. The fee amount is not 
contingent on the number of stockholder votes cast in favor of any proposal, and Broadridge is prohibited from making any recommendation to our 
stockholders to either accept or reject any proposal or otherwise express an opinion concerning a proposal.

What Other Business Will Be Presented At The Annual Meeting?

As of the date of this Proxy Statement, the Board knows of no other business that may properly be, or is likely to be, brought before the Annual 
Meeting. If any other matters should arise at the Annual Meeting, the persons named as proxy holders, Kirk Thompson and John N. Roberts, III, 
will have the discretion to vote your shares on any additional matters properly presented for a vote at the meeting. If, for any unforeseen reason, any 
of the director nominees are not available to serve as a director, the named proxy holders will vote your proxy for such other director candidate or 
candidates as may be nominated by the Board.

What Is The Deadline For Stockholder Proposals For The 2014 Annual Meeting?

In order for a stockholder proposal to be eligible to be included in the Company’s Proxy Statement and proxy card for the 2014 Annual 

Meeting of Stockholders, the proposal:

(1)   must be received by the Company at its executive ofﬁces, 615 J.B. Hunt Corporate Drive, Lowell, Arkansas 72745, Attention: Corporate 

Secretary, on or before November 15, 2013, and

(2)   must concern a matter that may be properly considered and acted upon at the Annual Meeting in accordance with applicable laws, 
regulations and the Company’s Bylaws and policies, and must otherwise comply with Rule 14a-8 of the Securities Exchange Act of 1934, 
as amended (the “Exchange Act”).

Where Can I Find The Voting Results Of The Annual Meeting?

The Company will publish ﬁnal voting results of the Annual Meeting on Form 8-K within four days after the annual stockholders meeting on 

April 25, 2013.

What Should I Do If I Receive More Than One Set Of Voting Materials?

You may receive more than one set of voting materials, including multiple copies of this Proxy Statement and multiple proxies or voting 
instruction cards. For example, if you hold your shares in more than one brokerage account, you may receive a separate voting instruction card for 
each brokerage account. If you are a registered owner and your shares are registered in more than one name, you will receive more than one proxy 
card. Please vote each proxy and instruction card that you receive.

What Is Householding?

In an effort to reduce printing costs and postage fees, the Company has adopted a practice approved by the Securities and Exchange Commission 
(the “SEC”) called “householding.” Under this practice, certain stockholders who have the same address and last name will receive only one copy 
of this Proxy Statement and the Company’s Annual Report, unless one or more of these stockholders notiﬁes the Company that he or she wishes 
to continue receiving individual copies. Stockholders who participate in householding will continue to receive separate proxy cards.

8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
If you share an address with another stockholder and received only one copy of this Proxy Statement and the Company’s Annual Report and 

would like to request a separate copy of these materials, or if you do not wish to participate in householding in the future, please:

(1)   mail  such  request  to  J.B.  Hunt  Transport  Services,  Inc.,  Attention:  Corporate  Secretary,  615  J.B.  Hunt  Corporate  Drive,  Lowell, 

Arkansas 72745, or

(2)   call the Corporate Secretary toll-free at 800-643-3622.

Similarly, you may also contact the Company if you received multiple copies of the Company’s proxy materials and would prefer to receive a 

single copy in the future.

What Do I Need To Do Now?

First, read this Proxy Statement carefully. Then, if you are a registered owner, you should, as soon as possible, submit your proxy by executing 
and returning the proxy card or by voting electronically via the Internet or by telephone. If you are the beneﬁcial owner of shares held in “street 
name,” then you should follow the voting instructions of your broker, bank or other nominee. Your shares will be voted in accordance with the 
directions you specify. If you submit an executed proxy card to the Company, but fail to specify voting directions, your shares will be voted:

(1)   FOR the election of the director nominees,
(2)   FOR the ratiﬁcation of the appointment of E&Y as the Company’s independent registered public accounting ﬁrm for the 2013 calendar year.

Who Can Help Answer My Questions?

If you have questions concerning a proposal or the Annual Meeting, if you would like additional copies of this Proxy Statement, or if you need 
directions to or special assistance at the Annual Meeting, please call the Corporate Secretary toll-free at 800-643-3622. In addition, information 
regarding the Annual Meeting is available via the Internet at our website, www.jbhunt.com.

YOU SHOULD CAREFULLY READ THIS PROXY STATEMENT IN ITS ENTIRETY

The summary information provided above in the question-and-answer format is for your convenience only and is merely a brief description of 

material information contained in this Proxy Statement.

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YOUR VOTE IS IMPORTANT

IF YOU ARE A REGISTERED OWNER, YOU MAY VOTE BY INTERNET, TELEPHONE, 
OR BY COMPLETING, SIGNING AND DATING 
THE ENCLOSED PROXY CARD AND RETURNING IT TO US 
IN THE ACCOMPANYING ENVELOPE AS PROMPTLY AS POSSIBLE

IF YOU ARE A BENEFICIAL OWNER, PLEASE FOLLOW THE VOTING INSTRUCTIONS  
OF YOUR BROKER, BANK OR OTHER NOMINEE 
AS PROVIDED WITH THIS PROXY STATEMENT AS PROMPTLY AS POSSIBLE

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PROPOSALS TO BE VOTED AT THE ANNUAL MEETING

PROPOSAL NUMBER ONE 
ELECTION OF DIRECTORS

Our Board nominates Douglas G. Duncan, Francesca M. Edwardson, Wayne Garrison, Sharilyn S. Gasaway, Gary C. George, Bryan Hunt, 
Coleman H. Peterson, John N. Roberts, III, James L. Robo, Kirk Thompson, and John A. White as directors to hold ofﬁce for a term of one year, 
expiring at the close of the 2014 Annual Meeting of Stockholders or until their successors are elected and qualiﬁed or until their earlier resignation 
or removal. The Board believes that these incumbent directors standing for re-election are well-qualiﬁed and experienced to direct and manage the 
Company’s operations and business affairs and will represent the interests of the stockholders as a whole. Biographical information on each of these 
nominees is set forth below in “Nominees for Director.”

If any director nominee becomes unavailable for election, which is not anticipated, the named proxies will vote for the election of such other 
person as the Board may nominate, unless the Board resolves to reduce the number of directors to serve on the Board and thereby reduce the 
number of directors to be elected at the Annual Meeting.

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE
FOR
EACH OF THE DIRECTOR NOMINEES LISTED HEREIN

INFORMATION ABOUT THE BOARD
The Board’s directors hold a term of ofﬁce of one year.

OTHER INFORMATION YOU NEED TO MAKE AN INFORMED DECISION

DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY

Number of Directors and Term of Directors and Executive Ofﬁcers

The Company’s Bylaws provide that the number of directors shall not be less than three or more than 12, with the exact number to be ﬁxed 

by the Board. Directors serve a term of one year from their election date to the Annual Meeting of Stockholders.

Directors are elected by a majority of votes cast with respect to each director, provided that the number of nominees does not exceed the 

number of directors to be elected.

The stockholders of the Company elect at the Company’s Annual Meeting successors for directors whose terms have expired. The Board 
elects members to ﬁll new membership positions and vacancies in unexpired terms on the Board. No director will be eligible to stand for re-election 
or be elected to a vacancy once he or she has reached 72 years of age. However, on April 26, 2012, our Board of Directors waived this mandatory 
retirement age until the close of our 2014 Annual Meeting of Stockholders. Executive ofﬁcers are elected by the Board and hold ofﬁce until their 
successors are elected and qualiﬁed or until their earlier death, retirement, resignation or removal.

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NOMINEES FOR DIRECTOR

TERMS EXPIRE 2014

Douglas G. Duncan
Mr.  Duncan,  62,  was  elected  to  the  Board  in  2010.  He  is  a  member  of  the  Audit  Committee  and  the  Nominating  and 
Corporate Governance Committee. On February 28, 2010, he retired as President and Chief Executive Ofﬁcer of FedEx 
Freight Corporation, a wholly owned subsidiary of FedEx Corporation. FedEx Freight Corporation is a leading provider of 
regional  and  national  less-than-truckload  (LTL)  freight  services.  Mr.  Duncan  was  the  founding  chief  executive  ofﬁcer  of 
FedEx Freight. He also served on the Strategic Management Committee of FedEx Corporation. Before the formation of FedEx 
Freight, he served for two years as President and Chief Executive Ofﬁcer of Viking Freight. With 30 years of transportation 
experience, Mr. Duncan has held management positions in operations, sales and marketing with Caliber System and Roadway 
Express. He served on the Executive Committee of the American Trucking Associations and as Chairman of the American 
Transportation Research Institute. A graduate of Christopher Newport University, Mr. Duncan served on the university’s 
Board of Visitors. He currently serves on the Board of Directors of Brambles LTD and Benchmark Electronics, Inc., where he 
also chairs the Nominating and Corporate Governance Committee.

Francesca M. Edwardson
Ms. Edwardson, 55, was elected to the Board in 2011. She serves on the Company’s Executive Compensation Committee and 
the Nominating and Corporate Governance Committee. She is the Chief Executive Ofﬁcer of the American Red Cross of 
Greater Chicago, a chartered unit of the American Red Cross. She previously served as Senior Vice President and General 
Counsel for UAL Corporation, a predecessor company to United Continental Holdings, Inc. She has also been a partner in 
the law ﬁrm of Mayer Brown and the Executive Director of the Illinois Securities Department. Ms. Edwardson is a graduate of 
Loyola University in Chicago, Ill., with degrees in economics and law, and serves on the Board of Trustees for Rush University 
Medical Center and the Lincoln Park Zoo.

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Wayne Garrison
Mr. Garrison, 60, was elected to the Board in 1981. He served as Chairman of the Board of the Company from 1995 to 
December 31, 2010, and continues to serve as a member of the Board of Directors. Joining the Company in 1976 as Plant 
Manager, Mr. Garrison has also served as Vice President of Finance in 1978, Executive Vice President of Finance in 1979, 
President in 1982, Chief Executive Ofﬁcer in 1987 and Vice Chairman of the Board from January 1986 until May 1991.

Sharilyn S. Gasaway
Mrs. Gasaway, 44, was elected to the Board in 2009. She is a member of the Audit Committee and the Nominating and 
Corporate  Governance  Committee.  She  served  as  Executive  Vice  President  and  Chief  Financial  Ofﬁcer  of  Alltel  Corp., 
the Little Rock, Arkansas-based Fortune 500 wireless carrier, from 2006 to 2009. She was part of the executive team that 
spearheaded publicly traded Alltel’s transition through the largest private equity buyout in the telecom sector and was an 
integral part of the successful combination of Alltel and Verizon. She also served as Alltel’s Corporate Controller and Principal 
Accounting Ofﬁcer from 2002 to 2006. Joining Alltel in 1999, she served as Director of General Accounting, Controller, 
and Vice President of Accounting and Finance. Prior to joining Alltel, she worked for eight years at Arthur Andersen LLC. 
Mrs. Gasaway has a degree in accounting from Louisiana Tech University and is a Certiﬁed Public Accountant. She currently 
serves on the Board of Directors, chairs the Audit Committee and serves on the Governance, Compensation and Business 
Development Committee of Genesis Energy, LP. She also serves on the Board of Directors and the Audit, Investment, and 
Nominating and Corporate Governance Committees of Waddell & Reed Financial, Inc., as well as on the Louisiana Tech 
University College of Business Advisory Board and the Board of Directors of Arkansas Children’s Hospital.

Gary C. George
Mr. George, 62, was elected to the Board in 2006. He is chairman of the Nominating and Corporate Governance Committee 
and a member of the Executive Compensation Committee. Mr. George is Chairman and Chief Executive Ofﬁcer of George’s, 
Inc., a private, fully integrated poultry company in northwest Arkansas. He is a graduate of the University of Arkansas with 
a degree in business administration. He served on the Board of Trustees for the University of Arkansas from 1995 through 
2005 and was Chairman of the Board of Trustees in 2005. He also serves as Chairman of the Board of Legacy National Bank 
in Springdale, Ark.

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Bryan Hunt
Mr. Hunt, 54, was elected to the Board in 1991. He is the Managing Member of Hunt Auto Group, a private company with 
operations in motor vehicle sales and service in Arkansas and Missouri. He also serves as Managing Member of Best Buy Here 
Pay Here of Arkansas, a private company with used-car operations in Arkansas, Missouri and Oklahoma. Additionally, he is 
the Managing Member of Progressive Car Finance, a private company that provides subprime ﬁnancing for automobile dealers, 
and 71 Auto Auction, a private company engaged in the auction of automobiles, trucks, boats and other motor vehicles to 
dealers and the general public. A graduate of the University of Arkansas, he has a degree in marketing and transportation. He 
is the son of co-founders J.B. and Johnelle Hunt.

Coleman H. Peterson
Mr. Peterson, 64, was elected to the Board in 2004. He is chairman of the Executive Compensation Committee and a member 
of the Nominating and Corporate Governance Committee. Mr. Peterson is the President and CEO of Hollis Enterprises LLC, 
a human resources consulting ﬁrm founded in 2004. He is retired from Wal-Mart Stores, Inc. as Executive Vice President 
of its People Division. During his tenure, Mr. Peterson was responsible for recruitment, retention and development of the 
world’s largest corporate work force. Prior to his experience with Wal-Mart, Mr. Peterson spent 16 years with Venture Stores, 
with his last position being Senior Vice President of Human Resources. He holds bachelor’s and master’s degrees from Loyola 
University of Chicago. Mr. Peterson serves on the Board of Directors, chairs the Compensation Committee, and serves on the 
Nominating and Corporate Governance Committee of Build-A-Bear Workshop. He also serves on the Board of Directors, 
chairs  the  Compensation  Committee,  and  serves  on  the  Nominating  and  Corporate  Governance  Committee  of  Cracker 
Barrel Old Country Store, Inc. Locally, he served as Chairman of the Board of Trustees for Northwest Arkansas Community 
College until December 31, 2010. Mr. Peterson served as a member of the Board of Directors and chaired the Compensation 
Committee of The ServiceMaster Company and served on the Board of Directors of Knockout Holdings, Inc. He also sat on 
the Executive Committee of the NAACP and served as Treasurer for the NAACP’s Special Contribution Fund.

John N. Roberts, III
Mr. Roberts, 48, was elected to the Board in 2010, and was elected to serve as the Company’s President and Chief Executive 
Ofﬁcer  effective  January  1,  2011.  A  graduate  of  the  University  of  Arkansas,  he  served  as  Executive  Vice  President  and 
President of Dedicated Contract Services from 1997 to December 31, 2010. Joining the Company in 1989, he began his career 
as a Management Trainee and subsequently served as an EDI Services Coordinator, Regional Marketing Manager for the 
Intermodal and Truckload business units, Business Development Executive for DCS and Vice President of Marketing Strategy 
for the Company.

James L. Robo
Mr. Robo, 50, was elected to the Board in 2002. He is lead independent director, chairman of the Audit Committee and a 
member of the Nominating and Corporate Governance Committee. Mr. Robo is President and Chief Executive Ofﬁcer of 
NextEra Energy, Inc. He served as President and Chief Operating Ofﬁcer of NextEra Energy until June 2012, as President 
of  NextEra  Energy  Resources  until  December  2006  and  as  Vice  President  of  Corporate  Development  and  Strategy  until 
July 2002. NextEra Energy is a U.S. electric company whose two main subsidiaries are Florida Power & Light and NextEra 
Energy Resources. Prior to joining NextEra Energy in 2002, Mr. Robo spent 10 years at General Electric Company. He served 
as President and Chief Executive Ofﬁcer of GE Mexico from 1997 until 1999 and as President and Chief Executive Ofﬁcer 
of the GE Capital TIP/Modular Space division from 1999 until February 2002. From 1984 through 1992, Mr. Robo worked 
for Mercer Management Consulting. He received a BA summa cum laude from Harvard College and an MBA from Harvard 
Business School, where he was a Baker Scholar.

Kirk Thompson
Mr. Thompson, 59, was elected to the Board in 1985. He was elected Chairman of the Board in 2010, assuming that ofﬁce 
on January 1, 2011. He served as President and Chief Executive Ofﬁcer from 1987 to December 31, 2010. A graduate of the 
University of Arkansas and a Certiﬁed Public Accountant, Mr. Thompson joined the Company in 1973. He served as Vice 
President of Finance from 1979 until 1984, Executive Vice President and Chief Financial Ofﬁcer until 1985, and President and 
Chief Operating Ofﬁcer from 1986 until 1987, when he was elected President and Chief Executive Ofﬁcer.

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John A. White
Dr. White, 73, was elected to the Board in 1998 and resigned his position on our Board effective April 26, 2012, in accordance 
with the Company’s mandatory retirement age policy for Directors. On April 26, 2012, our Board of Directors waived its 
mandatory retirement age until the close of our 2014 Annual Meeting of Stockholders and subsequently elected Dr. White to 
serve a one-year term. He is a member of the Audit Committee, the Executive Compensation Committee, and the Nominating 
and Corporate Governance Committee. Dr. White is Chancellor Emeritus and Distinguished Professor of the University of 
Arkansas. Previous to this appointment, he served as Chancellor of the University of Arkansas, a position he held for 11 
years, beginning July 1, 1997. A graduate of the University of Arkansas (BSIE), Virginia Tech (MSIE) and The Ohio State 
University (Ph.D.), he also holds honorary doctorates from the Katholieke Universiteit of Leuven in Belgium and from George 
Washington University. Dr. White is a member of the National Academy of Engineering and serves on the Board and the 
Audit Committee of Motorola Solutions, Inc. He has served on the boards of directors and the Audit Committees of Eastman 
Chemical, Logility and Russell Corporation.

DIRECTOR COMPENSATION

The Company pays only nonemployee directors for their services as directors. Directors who are also ofﬁcers or employees of the Company are 

not eligible to receive any of the compensation described below.

In calendar year 2012, compensation for nonemployee directors, serving on the Board, was as follows:
(cid:85)(cid:202)(cid:202)(cid:62)(cid:152)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:192)(cid:105)(cid:204)(cid:62)(cid:136)(cid:152)(cid:105)(cid:192)(cid:202)(cid:156)(cid:118)(cid:202)(cid:102)(cid:163)(cid:206)(cid:120)(cid:93)(cid:228)(cid:228)(cid:228)(cid:202)(cid:171)(cid:62)(cid:136)(cid:96)(cid:202)(cid:136)(cid:152)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:202)(cid:195)(cid:204)(cid:156)(cid:86)(cid:142)(cid:93)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:202)(cid:156)(cid:192)(cid:202)(cid:62)(cid:152)(cid:222)(cid:202)(cid:86)(cid:156)(cid:147)(cid:76)(cid:136)(cid:152)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:204)(cid:133)(cid:105)(cid:192)(cid:105)(cid:156)(cid:118)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:152)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:192)(cid:105)(cid:204)(cid:62)(cid:136)(cid:152)(cid:105)(cid:192)(cid:202)(cid:156)(cid:118)(cid:202)(cid:102)(cid:163)(cid:211)(cid:93)(cid:228)(cid:228)(cid:228)(cid:93)(cid:202)(cid:171)(cid:62)(cid:136)(cid:96)(cid:202)(cid:136)(cid:152)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:93)(cid:202)(cid:204)(cid:156)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:1)(cid:213)(cid:96)(cid:136)(cid:204)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:10)(cid:133)(cid:62)(cid:136)(cid:192)(cid:147)(cid:62)(cid:152)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:152)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:192)(cid:105)(cid:204)(cid:62)(cid:136)(cid:152)(cid:105)(cid:192)(cid:202)(cid:156)(cid:118)(cid:202)(cid:102)(cid:110)(cid:93)(cid:228)(cid:228)(cid:228)(cid:93)(cid:202)(cid:171)(cid:62)(cid:136)(cid:96)(cid:202)(cid:136)(cid:152)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:93)(cid:202)(cid:204)(cid:156)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:13)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:10)(cid:133)(cid:62)(cid:136)(cid:192)(cid:147)(cid:62)(cid:152)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:152)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:192)(cid:105)(cid:204)(cid:62)(cid:136)(cid:152)(cid:105)(cid:192)(cid:202)(cid:156)(cid:118)(cid:202)(cid:102)(cid:123)(cid:93)(cid:228)(cid:228)(cid:228)(cid:93)(cid:202)(cid:171)(cid:62)(cid:136)(cid:96)(cid:202)(cid:136)(cid:152)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:93)(cid:202)(cid:204)(cid:156)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:32)(cid:156)(cid:147)(cid:136)(cid:152)(cid:62)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:10)(cid:156)(cid:192)(cid:171)(cid:156)(cid:192)(cid:62)(cid:204)(cid:105)(cid:202)(cid:20)(cid:156)(cid:219)(cid:105)(cid:192)(cid:152)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:10)(cid:133)(cid:62)(cid:136)(cid:192)(cid:147)(cid:62)(cid:152)
(cid:85)(cid:202)(cid:202)(cid:102)(cid:123)(cid:93)(cid:120)(cid:228)(cid:228)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:105)(cid:62)(cid:86)(cid:133)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:147)(cid:105)(cid:105)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:204)(cid:204)(cid:105)(cid:152)(cid:96)(cid:105)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:102)(cid:211)(cid:93)(cid:120)(cid:228)(cid:228)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:105)(cid:62)(cid:86)(cid:133)(cid:202)(cid:1)(cid:213)(cid:96)(cid:136)(cid:204)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:147)(cid:105)(cid:105)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:204)(cid:204)(cid:105)(cid:152)(cid:96)(cid:105)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:102)(cid:211)(cid:93)(cid:228)(cid:228)(cid:228)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:105)(cid:62)(cid:86)(cid:133)(cid:202)(cid:13)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:147)(cid:105)(cid:105)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:204)(cid:204)(cid:105)(cid:152)(cid:96)(cid:105)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:102)(cid:163)(cid:93)(cid:120)(cid:228)(cid:228)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:105)(cid:62)(cid:86)(cid:133)(cid:202)(cid:32)(cid:156)(cid:147)(cid:136)(cid:152)(cid:62)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:10)(cid:156)(cid:192)(cid:171)(cid:156)(cid:192)(cid:62)(cid:204)(cid:105)(cid:202)(cid:20)(cid:156)(cid:219)(cid:105)(cid:192)(cid:152)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:147)(cid:105)(cid:105)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:204)(cid:204)(cid:105)(cid:152)(cid:96)(cid:105)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:136)(cid:147)(cid:76)(cid:213)(cid:192)(cid:195)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202)(cid:156)(cid:118)(cid:202)(cid:105)(cid:221)(cid:171)(cid:105)(cid:152)(cid:195)(cid:105)(cid:195)(cid:202)(cid:204)(cid:156)(cid:202)(cid:62)(cid:204)(cid:204)(cid:105)(cid:152)(cid:96)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:147)(cid:105)(cid:105)(cid:204)(cid:136)(cid:152)(cid:125)(cid:195)

(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)

At the Executive Compensation Committee’s (the “Committee”) meeting on October 24, 2012, the Committee reviewed a summary of various 
compensation packages awarded to directors of the Company’s peer group compiled by Meridian Compensation Partners, LLC. The Committee 
determined that the Board’s compensation would be changed to the following, effective January 1, 2013.

P
r
o
x
y
S
t
a
t
e
m
e
n
t

(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)

(cid:85)(cid:202)(cid:202)(cid:62)(cid:152)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:192)(cid:105)(cid:204)(cid:62)(cid:136)(cid:152)(cid:105)(cid:192)(cid:202)(cid:156)(cid:118)(cid:202)(cid:102)(cid:163)(cid:123)(cid:228)(cid:93)(cid:228)(cid:228)(cid:228)(cid:202)(cid:171)(cid:62)(cid:136)(cid:96)(cid:202)(cid:136)(cid:152)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:202)(cid:195)(cid:204)(cid:156)(cid:86)(cid:142)(cid:93)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:202)(cid:156)(cid:192)(cid:202)(cid:62)(cid:152)(cid:222)(cid:202)(cid:86)(cid:156)(cid:147)(cid:76)(cid:136)(cid:152)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:204)(cid:133)(cid:105)(cid:192)(cid:105)(cid:156)(cid:118)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:152)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:192)(cid:105)(cid:204)(cid:62)(cid:136)(cid:152)(cid:105)(cid:192)(cid:202)(cid:156)(cid:118)(cid:202)(cid:102)(cid:163)(cid:120)(cid:93)(cid:228)(cid:228)(cid:228)(cid:93)(cid:202)(cid:171)(cid:62)(cid:136)(cid:96)(cid:202)(cid:136)(cid:152)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:93)(cid:202)(cid:204)(cid:156)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:1)(cid:213)(cid:96)(cid:136)(cid:204)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:10)(cid:133)(cid:62)(cid:136)(cid:192)(cid:147)(cid:62)(cid:152)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:152)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:192)(cid:105)(cid:204)(cid:62)(cid:136)(cid:152)(cid:105)(cid:192)(cid:202)(cid:156)(cid:118)(cid:202)(cid:102)(cid:163)(cid:228)(cid:93)(cid:228)(cid:228)(cid:228)(cid:93)(cid:202)(cid:171)(cid:62)(cid:136)(cid:96)(cid:202)(cid:136)(cid:152)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:93)(cid:202)(cid:204)(cid:156)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:13)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:10)(cid:133)(cid:62)(cid:136)(cid:192)(cid:147)(cid:62)(cid:152)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:152)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:192)(cid:105)(cid:204)(cid:62)(cid:136)(cid:152)(cid:105)(cid:192)(cid:202)(cid:156)(cid:118)(cid:202)(cid:102)(cid:120)(cid:93)(cid:228)(cid:228)(cid:228)(cid:93)(cid:202)(cid:171)(cid:62)(cid:136)(cid:96)(cid:202)(cid:136)(cid:152)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:93)(cid:202)(cid:204)(cid:156)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:32)(cid:156)(cid:147)(cid:136)(cid:152)(cid:62)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:10)(cid:156)(cid:192)(cid:171)(cid:156)(cid:192)(cid:62)(cid:204)(cid:105)(cid:202)(cid:20)(cid:156)(cid:219)(cid:105)(cid:192)(cid:152)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:10)(cid:133)(cid:62)(cid:136)(cid:192)(cid:147)(cid:62)(cid:152)
(cid:85)(cid:202)(cid:202)(cid:102)(cid:123)(cid:93)(cid:120)(cid:228)(cid:228)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:105)(cid:62)(cid:86)(cid:133)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:147)(cid:105)(cid:105)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:204)(cid:204)(cid:105)(cid:152)(cid:96)(cid:105)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:102)(cid:211)(cid:93)(cid:120)(cid:228)(cid:228)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:105)(cid:62)(cid:86)(cid:133)(cid:202)(cid:1)(cid:213)(cid:96)(cid:136)(cid:204)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:147)(cid:105)(cid:105)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:204)(cid:204)(cid:105)(cid:152)(cid:96)(cid:105)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:102)(cid:211)(cid:93)(cid:228)(cid:228)(cid:228)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:105)(cid:62)(cid:86)(cid:133)(cid:202)(cid:13)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:147)(cid:105)(cid:105)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:204)(cid:204)(cid:105)(cid:152)(cid:96)(cid:105)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:102)(cid:163)(cid:93)(cid:120)(cid:228)(cid:228)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:105)(cid:62)(cid:86)(cid:133)(cid:202)(cid:32)(cid:156)(cid:147)(cid:136)(cid:152)(cid:62)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:10)(cid:156)(cid:192)(cid:171)(cid:156)(cid:192)(cid:62)(cid:204)(cid:105)(cid:202)(cid:20)(cid:156)(cid:219)(cid:105)(cid:192)(cid:152)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:147)(cid:105)(cid:105)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:204)(cid:204)(cid:105)(cid:152)(cid:96)(cid:105)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:136)(cid:147)(cid:76)(cid:213)(cid:192)(cid:195)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202)(cid:156)(cid:118)(cid:202)(cid:105)(cid:221)(cid:171)(cid:105)(cid:152)(cid:195)(cid:105)(cid:195)(cid:202)(cid:204)(cid:156)(cid:202)(cid:62)(cid:204)(cid:204)(cid:105)(cid:152)(cid:96)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:147)(cid:105)(cid:105)(cid:204)(cid:136)(cid:152)(cid:125)(cid:195)

Nonemployee Board of Director Compensation Paid in Calendar Year 2012

Restricted Share 
or Stock Option 
Awards ($) 

Non-Equity 
Incentive Plan 
Compensation ($) 

Fees 
Paid  
in Cash 
($) 
176,000 
27,000 
153,000 
108,500 
31,000 
148,500 
35,000 
53,000 
13,500 
107,500 

Fees 
Paid 
in Stock 
($) 

135,000 

67,500 
135,000 

135,000 
135,000 

67,500 

Board Member 
Douglas G. Duncan 
Francesca M. Edwardson 
Wayne Garrison 
Sharilyn S. Gasaway 
Gary C. George 
Bryan Hunt 
Coleman H. Peterson 
James L. Robo 
William J. Shea, Jr. (2) 
John A. White 

Change in Pension 
Value and 
Nonqualiﬁed
Deferred 

All Other

Compensation  Compensation
Earnings ($) 

($) (1) 
5,482 
3,541 

5,968 
6,456 

Total ($)
181,482
165,541
153,000
176,000
166,000
148,500
175,968
194,456
13,500
175,000

(1)   Reimbursement of expenses to attend Board and Committee meetings.
(2)   Mr. Shea resigned from the Board on April 16, 2012, and attended one Board meeting and four Committee meetings in 2012 prior to his resignation.

13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Each nonemployee member of the Board had the choice of receiving his or her annual retainer of $135,000 in Company stock, cash or any 
combination thereof. Those directors choosing to receive their full retainer in Company stock received 2,518 shares based on the $53.61 closing 
market price on July 25, 2012. Sharilyn S. Gasaway and John A. White elected to receive half their retainer in stock, or 1,259 shares of stock based 
on the closing market price shown above. Douglas G. Duncan, Wayne Garrison and Bryan Hunt elected to receive their annual retainer in cash.

To more closely align his or her interests with those of the stockholders, each Board member is required to own three times his/her estimated 
annual compensation in Company stock within ﬁve years of his/her initial stockholder election to the Board. All Board members are in compliance 
with this requirement.

Nonemployee members of the Board did not participate in either a company-sponsored pension or deferred compensation plan in calendar 

year 2012.

EXECUTIVE OFFICERS OF THE COMPANY

Gary Anderson, 46, joined the Company in 1994 as an Assistant Purchasing Manager and currently serves as Executive Vice President 

of Maintenance, Properties and Equipment. 

David N. Chelette, 49, joined the Company in 1993 as a Finance Manager and currently serves as Senior Vice President and Treasurer and 
Assistant Secretary. Prior to joining the Company, he was Cash Manager for Brinker International, Inc. Mr. Chelette is a Certiﬁed Public Accountant.

Craig Harper, 55, joined the Company in 1992 as Vice President of Marketing and currently serves as Executive Vice President and Chief 

Operations Ofﬁcer. Prior to joining the Company, he worked for Rineco Chemical Industries as its Chief Executive Ofﬁcer.

Nicholas Hobbs, 50, joined the Company in 1984 as a Management Trainee and currently serves as Executive Vice President and President 

of Dedicated Contract Services. 

John Kuhlow, 42, joined the Company in 2006 as Assistant Corporate Controller. He currently serves as Vice President and Controller. Prior 

to joining the Company, he was a Senior Audit Manager for KPMG LLP. Mr. Kuhlow is a Certiﬁed Public Accountant.

Terrence D. Matthews, 54, joined the Company in 1986 as a National Accounts Manager and currently serves as Executive Vice President 

and President of Intermodal. Prior to joining the Company, he worked as a National Accounts Manager for North American Van Lines.

David G. Mee, 52, joined the Company in 1992 as Vice President, Tax and currently serves as Executive Vice President of Finance and 
Administration and Chief Financial Ofﬁcer. He also serves as the Company’s Corporate Secretary. Prior to joining the Company, he was a Senior 
Tax Manager for KPMG LLP. Mr. Mee is a Certiﬁed Public Accountant.

Kay Johnson Palmer, 49, joined the Company in 1988 as a Program Analyst of Finance and currently serves as Executive Vice President and 

Chief Information Ofﬁcer. Prior to joining the Company, she worked at EDS as a Systems Engineer Manager.

Shelley  Simpson,  41,  joined  the  Company  in  1994  as  a  Management  Trainee  and  currently  serves  as  Executive  Vice  President,  Chief 

Marketing Ofﬁcer and President of the Integrated Capacity Solutions business segment.

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14

 
 
 
 
 
 
 
 
 
 
 
 
 
SECURITY OWNERSHIP OF MANAGEMENT

The following table sets forth the beneﬁcial ownership of the Company’s common stock as of February 14, 2013, by each of its current directors 
(including all nominees for director), the Named Executive Ofﬁcers (the “NEOs”), and all other executive ofﬁcers and directors as a group. Unless 
otherwise indicated in the footnotes below, “beneﬁcially owned” means the sole or shared power to vote or direct the voting of a security or the sole 
or shared power to dispose or direct the disposition of a security.

Owner 
Douglas G. Duncan 
Francesca M. Edwardson 
Wayne Garrison  
Sharilyn S. Gasaway  
Gary C. George 
Craig Harper 
Bryan Hunt 
Terrence D. Matthews 
David G. Mee 
Coleman H. Peterson 
John N. Roberts, III 
James L. Robo 
Kirk Thompson 
John A. White 

Number of Shares
Beneﬁcially Owned 
Indirectly (2) 

275  

1,507,123 (4) 

10,833  

Number of Shares 
Beneﬁcially Owned 
Directly (1) 
13,600   
6,518   
3,445,128   
13,103   
42,644   
80,104    
75,145    
96,101   
97,429    
26,299    
301,472   
63,021    
100,239    
41,556    

Percent
of Class (%) (3)
*
*
2.9%
*
1.3%
*
*
*
*
*
*
*
*
*

All executive ofﬁcers and directors as a group (20) 

4,628,422   

1,551,236  

5.3%

*Less than 1 percent

(1)  Includes shares owned by the director or executive ofﬁcer that are: 

(a)  held in a 401(k) or deferred compensation account 
(b)  held in trusts for the beneﬁt of an immediate family member whereby the director or executive ofﬁcer is the trustee but does not have any 

beneﬁcial ownership

(c)  options that are currently exercisable or will become exercisable within 60 days from February 14, 2013
(d)  pledged shares as shown below:

Bryan Hunt 
David G. Mee 
John N. Roberts, III 
Kirk Thompson 
All other executive ofﬁcers and directors as a group 

68,468
62,552
193,273
90,000
120,893

(2)  Indirect beneﬁcial ownership includes shares owned by the director or executive ofﬁcer (a) as beneﬁciary or trustee of a personal trust, (b) by a spouse or 

as trustee or beneﬁciary of a spouse’s trust, or (c) in a spouse’s retirement account.

(3)  Calculated on the basis of 117,549,810 shares of common stock outstanding of the Company on February 14, 2013.
(4)  The reporting person disclaims beneﬁcial ownership of these shares, which are held in limited partnerships. This report shall not be deemed an admission 
that the reporting person is the beneﬁcial owner of such securities for the purposes of Section 16 or for any other purposes. Includes 88,320 shares currently 
pledged by the reporting person.

CORPORATE GOVERNANCE
  We believe that good corporate governance helps to ensure that the Company is managed for the long-term beneﬁt of our stockholders. We 
continually review and consider our corporate governance policies and practices, the SEC’s corporate governance rules and regulations, and the 
corporate governance listing standards of NASDAQ, the stock exchange on which our common stock is traded.

You can access and print the Charters of our Audit Committee, Executive Compensation Committee (“Compensation Committee”), and 
Nominating and Corporate Governance Committee (“Corporate Governance Committee”), as well as our Corporate Governance Guidelines, 
Corporate Code of Ethical and Professional Standards for Directors, Ofﬁcers and Employees, Whistleblower Policy, and other Company policies 
and procedures required by applicable law, regulation or NASDAQ corporate governance listing standards on the “Corporate Governance” page 
of the “Investors” section of our website at www.jbhunt.com. Additionally, you can request copies of any of these documents by writing to our 
Corporate Secretary at the following address:

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J.B. Hunt Transport Services, Inc.
Attention: Corporate Secretary
615 J.B. Hunt Corporate Drive
Lowell, Arkansas 72745

15

 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
Director Independence

The Board is composed of a majority of directors who satisfy the criteria for independence under the NASDAQ corporate governance listing 
standards. In determining independence, each year the Board afﬁrmatively determines, among other items, whether the directors have no material 
relationship with the Company or any of its subsidiaries pursuant to the NASDAQ corporate governance listing standards. When assessing the 
“materiality” of a director’s relationship with the Company, if any, the Board considers all relevant facts and circumstances, not merely from the 
director’s standpoint, but from that of the persons or organizations with which the director has an afﬁliation and the frequency or regularity of the 
services, whether the services are being carried out at arm’s length in the ordinary course of business, and whether the services are being provided 
substantially on the same terms to the Company as those prevailing at the time from unrelated parties for comparable transactions. Material 
relationships  can  include  commercial,  banking,  industrial,  consulting,  legal,  accounting,  charitable  and  familial  relationships.  The  Board  also 
considers any other relationship that could interfere with the exercise of independence or judgment in carrying out the duties of a director.

Applying these independence standards, the Board has determined that Douglas G. Duncan, Francesca M. Edwardson, Sharilyn S. Gasaway, 
Gary C. George, Coleman H. Peterson, James L. Robo and John A. White are all independent directors. After due consideration, the Board has 
determined that none of these nonemployee directors has a material relationship with the Company or any of its subsidiaries (either directly or 
indirectly as a partner, stockholder or ofﬁcer of any organization that has a relationship with the Company or any of its subsidiaries) and that they 
all meet the criteria for independence under the NASDAQ corporate governance listing standards.

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Risk Management and Oversight

As previously described in their biographies, current members of our Board represent diverse backgrounds of business and academic experience. 
The Board, as a whole, performs the risk oversight of the Company and does not assign the task or responsibility to any one member or a committee. 
Therefore, the Board believes that the members each possess unique yet complementary experiences and backgrounds that create diverse points of 
view, opinions, personalities and management styles that allow for the proper risk management and oversight of the Company.

Lead Director

The Board has established the position of Lead Director, to which James L. Robo was appointed. The Lead Director directs the executive 
sessions of independent directors at the Board meetings at which the Chairman is not present and has authority to call meetings of independent 
directors.  The  Lead  Director  facilitates  communication  between  the  Chairman  and  CEO  and  the  independent  directors,  as  appropriate,  and 
performs such other functions as the Board directs. 

Independent Director Meetings

Independent directors generally meet in executive session as part of each regularly scheduled Board meeting, with discussion led by the 

Lead Director.

Director Recommendations By Stockholders

In addition to recommendations from Board members, management or professional search ﬁrms, the Corporate Governance Committee 
will consider director candidates properly submitted by stockholders who individually or as a group have beneﬁcially owned at least 2% of the 
outstanding shares of the Company’s common stock for at least one year from the date the recommendation is submitted. Stockholders must submit 
director candidate recommendations in writing by Certiﬁed Mail to the Company’s Corporate Secretary not less than 120 days prior to the ﬁrst 
anniversary of the date of the Proxy Statement relating to the Company’s previous Annual Meeting. Accordingly, for the 2014 Annual Meeting of 
Stockholders, director candidates must be submitted to the Company’s Corporate Secretary by November 15, 2013. Director candidates submitted 
by stockholders must contain at least the following information:
(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:152)(cid:62)(cid:147)(cid:105)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:62)(cid:96)(cid:96)(cid:192)(cid:105)(cid:195)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:192)(cid:105)(cid:86)(cid:156)(cid:147)(cid:147)(cid:105)(cid:152)(cid:96)(cid:136)(cid:152)(cid:125)(cid:202)(cid:195)(cid:204)(cid:156)(cid:86)(cid:142)(cid:133)(cid:156)(cid:143)(cid:96)(cid:105)(cid:192)(cid:93)
(cid:202)
(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:152)(cid:213)(cid:147)(cid:76)(cid:105)(cid:192)(cid:202)(cid:156)(cid:118)(cid:202)(cid:195)(cid:133)(cid:62)(cid:192)(cid:105)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:86)(cid:156)(cid:147)(cid:147)(cid:156)(cid:152)(cid:202)(cid:195)(cid:204)(cid:156)(cid:86)(cid:142)(cid:202)(cid:76)(cid:105)(cid:152)(cid:105)(cid:119)(cid:86)(cid:136)(cid:62)(cid:143)(cid:143)(cid:222)(cid:202)(cid:156)(cid:220)(cid:152)(cid:105)(cid:96)(cid:202)(cid:76)(cid:222)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:192)(cid:105)(cid:86)(cid:156)(cid:147)(cid:147)(cid:105)(cid:152)(cid:96)(cid:136)(cid:152)(cid:125)(cid:202)(cid:195)(cid:204)(cid:156)(cid:86)(cid:142)(cid:133)(cid:156)(cid:143)(cid:96)(cid:105)(cid:192)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:96)(cid:62)(cid:204)(cid:105)(cid:195)(cid:202)(cid:195)(cid:213)(cid:86)(cid:133)(cid:202)(cid:195)(cid:133)(cid:62)(cid:192)(cid:105)(cid:195)(cid:202)(cid:220)(cid:105)(cid:192)(cid:105)(cid:202)
(cid:202)

purchased,

(cid:202)
(cid:202)
(cid:202)

(cid:202)
(cid:202)

(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:152)(cid:62)(cid:147)(cid:105)(cid:93)(cid:202)(cid:62)(cid:125)(cid:105)(cid:93)(cid:202)(cid:76)(cid:213)(cid:195)(cid:136)(cid:152)(cid:105)(cid:195)(cid:195)(cid:202)(cid:62)(cid:96)(cid:96)(cid:192)(cid:105)(cid:195)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:192)(cid:105)(cid:195)(cid:136)(cid:96)(cid:105)(cid:152)(cid:86)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:62)(cid:152)(cid:96)(cid:136)(cid:96)(cid:62)(cid:204)(cid:105)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:171)(cid:192)(cid:136)(cid:152)(cid:86)(cid:136)(cid:171)(cid:62)(cid:143)(cid:202)(cid:156)(cid:86)(cid:86)(cid:213)(cid:171)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:156)(cid:192)(cid:202)(cid:105)(cid:147)(cid:171)(cid:143)(cid:156)(cid:222)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:62)(cid:152)(cid:96)(cid:136)(cid:96)(cid:62)(cid:204)(cid:105)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:171)(cid:62)(cid:195)(cid:204)(cid:202)(cid:119)(cid:219)(cid:105)(cid:202)(cid:222)(cid:105)(cid:62)(cid:192)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:202)(cid:96)(cid:105)(cid:195)(cid:86)(cid:192)(cid:136)(cid:171)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:62)(cid:152)(cid:96)(cid:136)(cid:96)(cid:62)(cid:204)(cid:105)(cid:189)(cid:195)(cid:202)(cid:181)(cid:213)(cid:62)(cid:143)(cid:136)(cid:119)(cid:86)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:195)(cid:202)(cid:204)(cid:156)(cid:202)(cid:195)(cid:105)(cid:192)(cid:219)(cid:105)(cid:202)(cid:62)(cid:195)(cid:202)(cid:62)(cid:202)(cid:96)(cid:136)(cid:192)(cid:105)(cid:86)(cid:204)(cid:156)(cid:192)(cid:93)(cid:202)(cid:136)(cid:152)(cid:86)(cid:143)(cid:213)(cid:96)(cid:136)(cid:152)(cid:125)(cid:202)(cid:119)(cid:152)(cid:62)(cid:152)(cid:86)(cid:136)(cid:62)(cid:143)(cid:202)(cid:105)(cid:221)(cid:171)(cid:105)(cid:192)(cid:204)(cid:136)(cid:195)(cid:105)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:220)(cid:133)(cid:222)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:62)(cid:152)(cid:96)(cid:136)(cid:96)(cid:62)(cid:204)(cid:105)(cid:202)(cid:96)(cid:156)(cid:105)(cid:195)(cid:202)(cid:156)(cid:192)(cid:202)(cid:96)(cid:156)(cid:105)(cid:195)(cid:202)(cid:152)(cid:156)(cid:204)(cid:202)

qualify as “independent” under the NASDAQ corporate governance listing standards,

(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:152)(cid:213)(cid:147)(cid:76)(cid:105)(cid:192)(cid:202)(cid:156)(cid:118)(cid:202)(cid:195)(cid:133)(cid:62)(cid:192)(cid:105)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:86)(cid:156)(cid:147)(cid:147)(cid:156)(cid:152)(cid:202)(cid:195)(cid:204)(cid:156)(cid:86)(cid:142)(cid:202)(cid:76)(cid:105)(cid:152)(cid:105)(cid:119)(cid:86)(cid:136)(cid:62)(cid:143)(cid:143)(cid:222)(cid:202)(cid:156)(cid:220)(cid:152)(cid:105)(cid:96)(cid:202)(cid:76)(cid:222)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:62)(cid:152)(cid:96)(cid:136)(cid:96)(cid:62)(cid:204)(cid:105)(cid:93)(cid:202)(cid:136)(cid:118)(cid:202)(cid:62)(cid:152)(cid:222)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:202)(cid:96)(cid:105)(cid:195)(cid:86)(cid:192)(cid:136)(cid:171)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:62)(cid:192)(cid:192)(cid:62)(cid:152)(cid:125)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:195)(cid:202)(cid:156)(cid:192)(cid:202)(cid:213)(cid:152)(cid:96)(cid:105)(cid:192)(cid:195)(cid:204)(cid:62)(cid:152)(cid:96)(cid:136)(cid:152)(cid:125)(cid:195)(cid:202)(cid:76)(cid:105)(cid:204)(cid:220)(cid:105)(cid:105)(cid:152)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:192)(cid:105)(cid:86)(cid:156)(cid:147)(cid:147)(cid:105)(cid:152)(cid:96)(cid:136)(cid:152)(cid:125)(cid:202)(cid:195)(cid:204)(cid:156)(cid:86)(cid:142)(cid:133)(cid:156)(cid:143)(cid:96)(cid:105)(cid:192)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:62)(cid:152)(cid:96)(cid:136)(cid:96)(cid:62)(cid:204)(cid:105)(cid:93)(cid:202)(cid:136)(cid:118)(cid:202)(cid:62)(cid:152)(cid:222)(cid:93)(cid:202)(cid:156)(cid:192)(cid:202)(cid:62)(cid:152)(cid:222)(cid:202)(cid:156)(cid:204)(cid:133)(cid:105)(cid:192)(cid:202)(cid:171)(cid:105)(cid:192)(cid:195)(cid:156)(cid:152)(cid:202)

pursuant to which the recommending stockholder is making the recommendation.

16

 
 
 
 
 
 
 
In addition, the recommending stockholder and the candidate must submit, with the recommendation, a signed statement agreeing and 

acknowledging that:
(cid:202)

(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:62)(cid:152)(cid:96)(cid:136)(cid:96)(cid:62)(cid:204)(cid:105)(cid:202)(cid:86)(cid:156)(cid:152)(cid:195)(cid:105)(cid:152)(cid:204)(cid:195)(cid:202)(cid:204)(cid:156)(cid:202)(cid:76)(cid:105)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:202)(cid:96)(cid:136)(cid:192)(cid:105)(cid:86)(cid:204)(cid:156)(cid:192)(cid:202)(cid:86)(cid:62)(cid:152)(cid:96)(cid:136)(cid:96)(cid:62)(cid:204)(cid:105)(cid:202)(cid:62)(cid:152)(cid:96)(cid:93)(cid:202)(cid:136)(cid:118)(cid:202)(cid:152)(cid:156)(cid:147)(cid:136)(cid:152)(cid:62)(cid:204)(cid:105)(cid:96)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:105)(cid:143)(cid:105)(cid:86)(cid:204)(cid:105)(cid:96)(cid:93)(cid:202)(cid:133)(cid:105)(cid:202)(cid:156)(cid:192)(cid:202)(cid:195)(cid:133)(cid:105)(cid:202)(cid:220)(cid:136)(cid:143)(cid:143)(cid:202)(cid:195)(cid:105)(cid:192)(cid:219)(cid:105)(cid:202)(cid:62)(cid:195)(cid:202)(cid:62)(cid:202)(cid:96)(cid:136)(cid:192)(cid:105)(cid:86)(cid:204)(cid:156)(cid:192)(cid:202)(cid:192)(cid:105)(cid:171)(cid:192)(cid:105)(cid:195)(cid:105)(cid:152)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:143)(cid:143)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)

(cid:202)

(cid:202)

(cid:202)

Company’s stockholders in accordance with applicable laws and the Company’s Articles of Incorporation and Bylaws,

(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:62)(cid:152)(cid:96)(cid:136)(cid:96)(cid:62)(cid:204)(cid:105)(cid:93)(cid:202)(cid:136)(cid:118)(cid:202)(cid:105)(cid:143)(cid:105)(cid:86)(cid:204)(cid:105)(cid:96)(cid:93)(cid:202)(cid:220)(cid:136)(cid:143)(cid:143)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:143)(cid:222)(cid:202)(cid:220)(cid:136)(cid:204)(cid:133)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:10)(cid:156)(cid:192)(cid:171)(cid:156)(cid:192)(cid:62)(cid:204)(cid:105)(cid:202)(cid:20)(cid:156)(cid:219)(cid:105)(cid:192)(cid:152)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:20)(cid:213)(cid:136)(cid:96)(cid:105)(cid:143)(cid:136)(cid:152)(cid:105)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:62)(cid:152)(cid:222)(cid:202)(cid:156)(cid:204)(cid:133)(cid:105)(cid:192)(cid:202)(cid:62)(cid:171)(cid:171)(cid:143)(cid:136)(cid:86)(cid:62)(cid:76)(cid:143)(cid:105)(cid:202)(cid:192)(cid:213)(cid:143)(cid:105)(cid:93)(cid:202)(cid:192)(cid:105)(cid:125)(cid:213)(cid:143)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:93)(cid:202)

policy or standard of conduct applicable to the Board and its individual members,

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through the date of the Annual Meeting for which the candidate is being recommended for nomination and that, upon the candidate’s 
nomination and election to the Board, the recommending stockholder intends to maintain such ownership throughout the candidate’s term 
as director, and,

(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:192)(cid:105)(cid:86)(cid:156)(cid:147)(cid:147)(cid:105)(cid:152)(cid:96)(cid:136)(cid:152)(cid:125)(cid:202)(cid:195)(cid:204)(cid:156)(cid:86)(cid:142)(cid:133)(cid:156)(cid:143)(cid:96)(cid:105)(cid:192)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:62)(cid:152)(cid:96)(cid:136)(cid:96)(cid:62)(cid:204)(cid:105)(cid:202)(cid:220)(cid:136)(cid:143)(cid:143)(cid:202)(cid:171)(cid:192)(cid:156)(cid:147)(cid:171)(cid:204)(cid:143)(cid:222)(cid:202)(cid:171)(cid:192)(cid:156)(cid:219)(cid:136)(cid:96)(cid:105)(cid:202)(cid:62)(cid:152)(cid:222)(cid:202)(cid:62)(cid:96)(cid:96)(cid:136)(cid:204)(cid:136)(cid:156)(cid:152)(cid:62)(cid:143)(cid:202)(cid:136)(cid:152)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:192)(cid:105)(cid:181)(cid:213)(cid:105)(cid:195)(cid:204)(cid:105)(cid:96)(cid:202)(cid:76)(cid:222)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:192)(cid:171)(cid:156)(cid:192)(cid:62)(cid:204)(cid:105)(cid:202)(cid:20)(cid:156)(cid:219)(cid:105)(cid:192)(cid:152)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)
Committee and/or the Board to assist in the consideration of the candidate, including a completed and signed Questionnaire for Directors 
and Ofﬁcers on the Company’s standard form and an interview with the Corporate Governance Committee or its representative.

For a complete list of the information that must be included in director recommendations submitted by stockholders, please see the “Director 
Recommendations by Stockholders Policy” on the “Corporate Governance” page of the “Investors” section of our website at www.jbhunt.com. The 
Corporate Governance Committee will consider all director candidates submitted through its established processes and will evaluate each of them, 
including incumbents, based on the same criteria. However, the Corporate Governance Committee may prefer incumbent directors and director 
candidates whom they know personally or who have relevant industry experience and in-depth knowledge of the Company’s business and operations.

The policies and procedures as set forth above are intended to provide ﬂexible guidelines for the effective functioning of the Company’s 
director nomination process. The Board intends to review these policies and procedures periodically and anticipates that modiﬁcations may be 
necessary from time to time as the Company’s needs and circumstances change.

Board Composition and Director Qualiﬁcations

The Corporate Governance Committee periodically assesses the appropriate size and composition of the Board and whether any vacancies 
on the Board are expected. In the event that vacancies are anticipated or otherwise arise, the Corporate Governance Committee will review and 
assess potential director candidates. The Corporate Governance Committee utilizes various methods for identifying and evaluating candidates 
for  director.  Candidates  may  come  to  the  attention  of  the  Corporate  Governance  Committee  through  recommendations  of  Board  members, 
management, stockholders or professional search ﬁrms. Generally, director candidates should, at a minimum:
(cid:202)
(cid:202)
(cid:202)
(cid:202)

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(cid:85)(cid:202)(cid:202)(cid:133)(cid:62)(cid:219)(cid:105)(cid:202)(cid:195)(cid:213)(cid:118)(cid:119)(cid:86)(cid:136)(cid:105)(cid:152)(cid:204)(cid:202)(cid:204)(cid:136)(cid:147)(cid:105)(cid:202)(cid:204)(cid:156)(cid:202)(cid:96)(cid:105)(cid:219)(cid:156)(cid:204)(cid:105)(cid:202)(cid:204)(cid:156)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:147)(cid:105)(cid:105)(cid:204)(cid:136)(cid:152)(cid:125)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:86)(cid:156)(cid:152)(cid:195)(cid:213)(cid:143)(cid:204)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:156)(cid:152)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:147)(cid:62)(cid:204)(cid:204)(cid:105)(cid:192)(cid:195)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:76)(cid:105)(cid:202)(cid:118)(cid:192)(cid:105)(cid:105)(cid:202)(cid:118)(cid:192)(cid:156)(cid:147)(cid:202)(cid:86)(cid:156)(cid:152)(cid:121)(cid:136)(cid:86)(cid:204)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:136)(cid:152)(cid:204)(cid:105)(cid:192)(cid:105)(cid:195)(cid:204)(cid:202)(cid:204)(cid:133)(cid:62)(cid:204)(cid:202)(cid:219)(cid:136)(cid:156)(cid:143)(cid:62)(cid:204)(cid:105)(cid:202)(cid:62)(cid:171)(cid:171)(cid:143)(cid:136)(cid:86)(cid:62)(cid:76)(cid:143)(cid:105)(cid:202)(cid:143)(cid:62)(cid:220)(cid:202)(cid:156)(cid:192)(cid:202)(cid:136)(cid:152)(cid:204)(cid:105)(cid:192)(cid:118)(cid:105)(cid:192)(cid:105)(cid:202)(cid:220)(cid:136)(cid:204)(cid:133)(cid:202)(cid:96)(cid:136)(cid:192)(cid:105)(cid:86)(cid:204)(cid:156)(cid:192)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:176)

In addition, the Corporate Governance Committee seeks director candidates who possess the following qualities and skills:
(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:62)(cid:171)(cid:62)(cid:86)(cid:136)(cid:204)(cid:222)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:96)(cid:105)(cid:195)(cid:136)(cid:192)(cid:105)(cid:202)(cid:204)(cid:156)(cid:202)(cid:192)(cid:105)(cid:171)(cid:192)(cid:105)(cid:195)(cid:105)(cid:152)(cid:204)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:136)(cid:152)(cid:204)(cid:105)(cid:192)(cid:105)(cid:195)(cid:204)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:195)(cid:204)(cid:156)(cid:86)(cid:142)(cid:133)(cid:156)(cid:143)(cid:96)(cid:105)(cid:192)(cid:195)(cid:202)(cid:62)(cid:195)(cid:202)(cid:62)(cid:202)(cid:220)(cid:133)(cid:156)(cid:143)(cid:105)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:156)(cid:86)(cid:86)(cid:213)(cid:171)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:62)(cid:143)(cid:202)(cid:105)(cid:221)(cid:171)(cid:105)(cid:192)(cid:136)(cid:105)(cid:152)(cid:86)(cid:105)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:171)(cid:105)(cid:192)(cid:195)(cid:171)(cid:105)(cid:86)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:204)(cid:133)(cid:62)(cid:204)(cid:93)(cid:202)(cid:204)(cid:156)(cid:125)(cid:105)(cid:204)(cid:133)(cid:105)(cid:192)(cid:202)(cid:220)(cid:136)(cid:204)(cid:133)(cid:202)(cid:156)(cid:204)(cid:133)(cid:105)(cid:192)(cid:202)(cid:96)(cid:136)(cid:192)(cid:105)(cid:86)(cid:204)(cid:156)(cid:192)(cid:195)(cid:93)(cid:202)(cid:105)(cid:152)(cid:133)(cid:62)(cid:152)(cid:86)(cid:105)(cid:195)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:181)(cid:213)(cid:62)(cid:143)(cid:136)(cid:204)(cid:222)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:143)(cid:105)(cid:62)(cid:96)(cid:105)(cid:192)(cid:195)(cid:133)(cid:136)(cid:171)(cid:202)(cid:105)(cid:221)(cid:171)(cid:105)(cid:192)(cid:136)(cid:105)(cid:152)(cid:86)(cid:105)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:195)(cid:156)(cid:213)(cid:152)(cid:96)(cid:202)(cid:76)(cid:213)(cid:195)(cid:136)(cid:152)(cid:105)(cid:195)(cid:195)(cid:202)(cid:141)(cid:213)(cid:96)(cid:125)(cid:147)(cid:105)(cid:152)(cid:204)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:86)(cid:86)(cid:156)(cid:147)(cid:171)(cid:143)(cid:136)(cid:195)(cid:133)(cid:147)(cid:105)(cid:152)(cid:204)(cid:195)(cid:202)(cid:136)(cid:152)(cid:202)(cid:204)(cid:133)(cid:105)(cid:136)(cid:192)(cid:202)(cid:192)(cid:105)(cid:195)(cid:171)(cid:105)(cid:86)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:119)(cid:105)(cid:143)(cid:96)(cid:93)(cid:202)(cid:220)(cid:136)(cid:204)(cid:133)(cid:202)(cid:195)(cid:213)(cid:171)(cid:105)(cid:192)(cid:136)(cid:156)(cid:192)(cid:202)(cid:86)(cid:192)(cid:105)(cid:96)(cid:105)(cid:152)(cid:204)(cid:136)(cid:62)(cid:143)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:192)(cid:105)(cid:86)(cid:156)(cid:125)(cid:152)(cid:136)(cid:204)(cid:136)(cid:156)(cid:152)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:142)(cid:152)(cid:156)(cid:220)(cid:143)(cid:105)(cid:96)(cid:125)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:192)(cid:136)(cid:204)(cid:136)(cid:86)(cid:62)(cid:143)(cid:202)(cid:62)(cid:195)(cid:171)(cid:105)(cid:86)(cid:204)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:76)(cid:213)(cid:195)(cid:136)(cid:152)(cid:105)(cid:195)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:156)(cid:171)(cid:105)(cid:192)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:195)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:62)(cid:76)(cid:136)(cid:143)(cid:136)(cid:204)(cid:222)(cid:202)(cid:204)(cid:156)(cid:202)(cid:86)(cid:156)(cid:152)(cid:204)(cid:192)(cid:136)(cid:76)(cid:213)(cid:204)(cid:105)(cid:202)(cid:204)(cid:156)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:147)(cid:136)(cid:221)(cid:202)(cid:156)(cid:118)(cid:202)(cid:195)(cid:142)(cid:136)(cid:143)(cid:143)(cid:195)(cid:93)(cid:202)(cid:86)(cid:156)(cid:192)(cid:105)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:204)(cid:105)(cid:152)(cid:86)(cid:136)(cid:105)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:181)(cid:213)(cid:62)(cid:143)(cid:136)(cid:119)(cid:86)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:204)(cid:133)(cid:192)(cid:156)(cid:213)(cid:125)(cid:133)(cid:202)(cid:105)(cid:221)(cid:171)(cid:105)(cid:192)(cid:204)(cid:136)(cid:195)(cid:105)(cid:202)(cid:136)(cid:152)(cid:202)(cid:156)(cid:152)(cid:105)(cid:202)(cid:156)(cid:192)(cid:202)(cid:147)(cid:156)(cid:192)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)

(cid:202)
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following areas:

– accounting and ﬁnance
– mergers and acquisitions
– investment management
– law
– academia
– strategic planning
– investor relations
– executive leadership development
– executive compensation
– service as a senior ofﬁcer of, or a trusted adviser to senior management of, a publicly held company.

17

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The independent members of the Board each possess the general skills, experience, attributes and qualiﬁcations that make them a proper ﬁt 
for the Company’s Board as described above. Speciﬁc strengths and qualities possessed by each member that makes him or her eligible to serve on 
the Company’s Board include:

Douglas G. Duncan – 30 years of experience in the transportation industry

Francesca M. Edwardson – business experience in the transportation industry, law, human resources, and corporate governance

Sharilyn S. Gasaway – accounting, ﬁnance, mergers and acquisitions, and regulatory experience

Gary C. George – business experience related to managing a diversiﬁed business located in northwest Arkansas

Coleman H. Peterson – human resource experience with a large international workforce, corporate governance, and retail experience

James L. Robo – business experience related to the transportation industry and equipment

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John A. White –  business and academic experience related to general business practices and extensive service on the boards of other publicly 

traded companies

  Messrs. Garrison, Hunt, Roberts and Thompson, as nonindependent directors, have extensive work experience and history with the Company 
from its origins, which the Board believes is critical to its composition.

Board Diversity

As indicated by the criteria above, the Board prefers a mix of background and experience among its members. Furthermore, the Board is 
diverse both in gender and ethnic representation, with more than 25% of our current members reﬂecting demographic minorities. The Board does 
not follow any ratio or formula to determine the appropriate mix. Rather, it uses its judgment to identify nominees whose backgrounds, attributes 
and experiences, taken as a whole, will contribute to the high standards of Board service to the Company. The effectiveness of this approach is 
evidenced by the directors’ participation in insightful and robust yet mutually respectful deliberation that occurs at Board and Committee meetings. 

Board Leadership Structure

The Company split the titles, roles and responsibilities of the Chairman of the Board and Chief Executive Ofﬁcer in 1985. The Company and 
the Board believe that while the duties may be performed by the same person without consequence to either Company operations or stockholders’ 
interest, separation of duties allows the Chairman to focus more on active participation by the Board and oversight of management, while the Chief 
Executive Ofﬁcer is better able to focus on day-to-day operations of the Company.

Communications With The Board

Stockholders and other interested parties may communicate with the Board, Board Committees, the independent or the nonmanagement 
directors, each as a group or any director individually by submitting their communications in writing to the attention of the Company’s Corporate 
Secretary. All communications must identify the recipient and author, state whether the author is a stockholder of the Company and be forwarded 
to the following address via Certiﬁed Mail:

J.B. Hunt Transport Services, Inc.
Attention: Corporate Secretary
615 J.B. Hunt Corporate Drive
Lowell, Arkansas 72745

The directors of the Company have instructed the Corporate Secretary not to forward to the intended recipient any communications that are 

reasonably determined in good faith by the Corporate Secretary to relate to improper or irrelevant topics or that are substantially incomplete.

Board Meetings

The  Board  held  four  scheduled  meetings  and  one  uncompensated  specially  called  meeting  during  the  2012  calendar  year.  All  directors 
attended at least 75% of the Board meetings and committee meetings on which each served during 2012. All directors attended the 2012 Annual 
Meeting of Stockholders. The Company has adopted a Director Attendance Policy to stress the importance of attendance, director preparedness, 
and active and effective participation at Board and Board Committee meetings.

18

 
 
 
 
 
 
 
 
 
 
 
 
 
 
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y
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Board Committees

Standing committees of the Board include the Audit, Executive Compensation, and Nominating and Corporate Governance committees. 
Committee  members  are  elected  annually  by  the  Board  and  serve  until  their  successors  are  elected  and  qualiﬁed  or  until  their  earlier  death, 
retirement, resignation or removal.

The following table summarizes the membership of the Board and each of its committees and the number of times each met during calendar 

year 2012:

Director 
Douglas G. Duncan 
Francesca M. Edwardson 
Sharilyn S. Gasaway 
Gary C. George 
Coleman H. Peterson 
James L. Robo 
John A. White 
Number of Meetings in 2012 

Audit 
X 

X 

Chair 
X 
8 

Compensation 

X 

X 
Chair 

X 
3 

Corporate
Governance
X
X
X
Chair
X
X
X
2

On January 31, 2013, the Corporate Governance Committee recommended, and the Board approved, the following committee assignments 

for the 2013 calendar year.

Director 
Douglas G. Duncan 
Francesca M. Edwardson 
Sharilyn S. Gasaway 
Gary C. George 
Coleman H. Peterson 
James L. Robo 
John A. White 

AUDIT COMMITTEE

Audit 
X 

X 

Chair 
X 

Compensation 

X 

X 
Chair 

X 

Corporate
Governance
X
X
X
Chair
X
X
X

Under the terms of its charter, the Audit Committee represents and assists the Board in fulﬁlling its oversight responsibility relating to the 
integrity of the Company’s ﬁnancial statements and the ﬁnancial reporting process, the systems of internal accounting and ﬁnancial controls, the 
internal audit function, the annual independent audit of the Company’s ﬁnancial statements, the Company’s compliance with legal and regulatory 
requirements,  the  independent  auditor’s  qualiﬁcations  and  independence,  the  performance  of  the  Company’s  internal  audit  function  and  the 
performance of its independent auditors.

In fulﬁlling its duties, the Audit Committee, among other things, shall:
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Company,

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(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:181)(cid:213)(cid:62)(cid:192)(cid:204)(cid:105)(cid:192)(cid:143)(cid:222)(cid:202)(cid:119)(cid:152)(cid:62)(cid:152)(cid:86)(cid:136)(cid:62)(cid:143)(cid:202)(cid:195)(cid:204)(cid:62)(cid:204)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:195)(cid:93)(cid:202)(cid:136)(cid:152)(cid:86)(cid:143)(cid:213)(cid:96)(cid:136)(cid:152)(cid:125)(cid:202)(cid:96)(cid:136)(cid:195)(cid:86)(cid:143)(cid:156)(cid:195)(cid:213)(cid:192)(cid:105)(cid:195)(cid:202)(cid:147)(cid:62)(cid:96)(cid:105)(cid:202)(cid:136)(cid:152)(cid:202)(cid:186)(cid:31)(cid:62)(cid:152)(cid:62)(cid:125)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:189)(cid:195)(cid:202)(cid:12)(cid:136)(cid:195)(cid:86)(cid:213)(cid:195)(cid:195)(cid:136)(cid:156)(cid:152)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:1)(cid:152)(cid:62)(cid:143)(cid:222)(cid:195)(cid:136)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)

Financial Condition and Results of Operations” set forth in periodic reports ﬁled with the SEC,

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internal control matters of the Company,

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(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)

(cid:202)
(cid:202)

(cid:202)
(cid:202)
(cid:202)

(cid:202)
(cid:202)

The Board has determined that each member of the Audit Committee satisﬁes the independence and other requirements for audit committee 
membership of the NASDAQ corporate governance listing standards and SEC requirements. The Board has also determined that all members of 
the Audit Committee have the attributes of an audit committee ﬁnancial expert as deﬁned by the SEC. The Board determined that these members 
acquired such attributes through their experience in preparing, auditing, analyzing or evaluating ﬁnancial statements, or actively supervising one 
or more persons engaged in such activities, and their experience of overseeing or assessing the performance of companies and public accountants 
with respect to preparation, auditing or evaluation of ﬁnancial statements. In 2012, the Audit Committee met eight times. All members attended 
at least seven Audit Committee meetings. For additional information concerning the Audit Committee, see “Report of the Audit Committee” set 
forth below.

19

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EXECUTIVE COMPENSATION COMMITTEE

The Executive Compensation Committee (the “Compensation Committee”) shall:
(cid:85)(cid:202)(cid:202)(cid:96)(cid:105)(cid:204)(cid:105)(cid:192)(cid:147)(cid:136)(cid:152)(cid:105)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:62)(cid:171)(cid:171)(cid:192)(cid:156)(cid:219)(cid:105)(cid:202)(cid:76)(cid:62)(cid:195)(cid:105)(cid:202)(cid:195)(cid:62)(cid:143)(cid:62)(cid:192)(cid:222)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:195)(cid:105)(cid:152)(cid:136)(cid:156)(cid:192)(cid:202)(cid:105)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:156)(cid:118)(cid:119)(cid:86)(cid:105)(cid:192)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:96)(cid:105)(cid:204)(cid:105)(cid:192)(cid:147)(cid:136)(cid:152)(cid:105)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:62)(cid:171)(cid:171)(cid:192)(cid:156)(cid:219)(cid:105)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:105)(cid:181)(cid:213)(cid:136)(cid:204)(cid:222)(cid:135)(cid:76)(cid:62)(cid:195)(cid:105)(cid:96)(cid:202)(cid:62)(cid:220)(cid:62)(cid:192)(cid:96)(cid:195)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:186)(cid:136)(cid:152)(cid:195)(cid:136)(cid:96)(cid:105)(cid:192)(cid:195)(cid:187)(cid:202)(cid:62)(cid:195)(cid:202)(cid:96)(cid:105)(cid:119)(cid:152)(cid:105)(cid:96)(cid:202)(cid:136)(cid:152)(cid:202)(cid:45)(cid:105)(cid:86)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:163)(cid:200)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:45)(cid:105)(cid:86)(cid:213)(cid:192)(cid:136)(cid:204)(cid:136)(cid:105)(cid:195)(cid:202)(cid:13)(cid:221)(cid:86)(cid:133)(cid:62)(cid:152)(cid:125)(cid:105)(cid:202)(cid:1)(cid:86)(cid:204)(cid:202)(cid:156)(cid:118)(cid:202)

1934, with the exception of the Chairman of the Board and the Chief Executive Ofﬁcer,

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Chairman of the Board and the Chief Executive Ofﬁcer,

(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:62)(cid:171)(cid:171)(cid:192)(cid:156)(cid:219)(cid:105)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:125)(cid:156)(cid:62)(cid:143)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:156)(cid:76)(cid:141)(cid:105)(cid:86)(cid:204)(cid:136)(cid:219)(cid:105)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:195)(cid:105)(cid:152)(cid:136)(cid:156)(cid:192)(cid:202)(cid:105)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:156)(cid:118)(cid:119)(cid:86)(cid:105)(cid:192)(cid:195)(cid:93)(cid:202)(cid:136)(cid:152)(cid:86)(cid:143)(cid:213)(cid:96)(cid:136)(cid:152)(cid:125)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:133)(cid:136)(cid:105)(cid:118)(cid:202)(cid:13)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)

Ofﬁcer,

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(cid:85)(cid:202)(cid:202)(cid:156)(cid:219)(cid:105)(cid:192)(cid:195)(cid:105)(cid:105)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:136)(cid:152)(cid:86)(cid:105)(cid:152)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:105)(cid:181)(cid:213)(cid:136)(cid:204)(cid:222)(cid:135)(cid:76)(cid:62)(cid:195)(cid:105)(cid:96)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:171)(cid:143)(cid:62)(cid:152)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:195)(cid:195)(cid:105)(cid:195)(cid:195)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:62)(cid:96)(cid:105)(cid:181)(cid:213)(cid:62)(cid:86)(cid:222)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:204)(cid:136)(cid:204)(cid:136)(cid:219)(cid:105)(cid:152)(cid:105)(cid:195)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:105)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:96)(cid:136)(cid:192)(cid:105)(cid:86)(cid:204)(cid:156)(cid:192)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:171)(cid:192)(cid:156)(cid:125)(cid:192)(cid:62)(cid:147)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:96)(cid:136)(cid:195)(cid:86)(cid:213)(cid:195)(cid:195)(cid:202)(cid:220)(cid:136)(cid:204)(cid:133)(cid:202)(cid:147)(cid:62)(cid:152)(cid:62)(cid:125)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:12)(cid:136)(cid:195)(cid:86)(cid:213)(cid:195)(cid:195)(cid:136)(cid:156)(cid:152)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:1)(cid:152)(cid:62)(cid:143)(cid:222)(cid:195)(cid:136)(cid:195)(cid:202)(cid:173)(cid:186)(cid:10)(cid:12)(cid:69)(cid:1)(cid:187)(cid:174)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:192)(cid:105)(cid:86)(cid:156)(cid:147)(cid:147)(cid:105)(cid:152)(cid:96)(cid:202)(cid:220)(cid:133)(cid:105)(cid:204)(cid:133)(cid:105)(cid:192)(cid:202)(cid:195)(cid:213)(cid:86)(cid:133)(cid:202)(cid:62)(cid:152)(cid:62)(cid:143)(cid:222)(cid:195)(cid:136)(cid:195)(cid:202)(cid:195)(cid:133)(cid:156)(cid:213)(cid:143)(cid:96)(cid:202)

be included in the Proxy Statement ﬁled with the SEC,

(cid:85)(cid:202)(cid:202)(cid:171)(cid:192)(cid:156)(cid:96)(cid:213)(cid:86)(cid:105)(cid:202)(cid:62)(cid:152)(cid:202)(cid:1)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:44)(cid:105)(cid:171)(cid:156)(cid:192)(cid:204)(cid:202)(cid:156)(cid:152)(cid:202)(cid:105)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:136)(cid:152)(cid:86)(cid:143)(cid:213)(cid:195)(cid:136)(cid:156)(cid:152)(cid:202)(cid:136)(cid:152)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:42)(cid:192)(cid:156)(cid:221)(cid:222)(cid:202)(cid:45)(cid:204)(cid:62)(cid:204)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:202) (cid:62)(cid:152)(cid:96)(cid:202) (cid:62)(cid:171)(cid:171)(cid:192)(cid:156)(cid:219)(cid:105)(cid:202) (cid:62)(cid:152)(cid:222)(cid:202) (cid:105)(cid:147)(cid:171)(cid:143)(cid:156)(cid:222)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202) (cid:62)(cid:125)(cid:192)(cid:105)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:195)(cid:93)(cid:202) (cid:195)(cid:105)(cid:219)(cid:105)(cid:192)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202) (cid:62)(cid:125)(cid:192)(cid:105)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:195)(cid:202) (cid:156)(cid:192)(cid:202) (cid:62)(cid:192)(cid:192)(cid:62)(cid:152)(cid:125)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:195)(cid:93)(cid:202) (cid:192)(cid:105)(cid:204)(cid:136)(cid:192)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202) (cid:62)(cid:192)(cid:192)(cid:62)(cid:152)(cid:125)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:195)(cid:93)(cid:202) (cid:86)(cid:133)(cid:62)(cid:152)(cid:125)(cid:105)(cid:202) (cid:136)(cid:152)(cid:202) (cid:86)(cid:156)(cid:152)(cid:204)(cid:192)(cid:156)(cid:143)(cid:202)

agreements/provisions, and any special or supplemental beneﬁts for each ofﬁcer of the Company,

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for ofﬁcers,

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(cid:85)(cid:202)(cid:202)(cid:62)(cid:96)(cid:147)(cid:136)(cid:152)(cid:136)(cid:195)(cid:204)(cid:105)(cid:192)(cid:93)(cid:202)(cid:147)(cid:156)(cid:96)(cid:136)(cid:118)(cid:222)(cid:202)(cid:156)(cid:192)(cid:202)(cid:62)(cid:147)(cid:105)(cid:152)(cid:96)(cid:202)(cid:105)(cid:181)(cid:213)(cid:136)(cid:204)(cid:222)(cid:135)(cid:76)(cid:62)(cid:195)(cid:105)(cid:96)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:171)(cid:143)(cid:62)(cid:152)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:171)(cid:143)(cid:62)(cid:152)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:195)(cid:213)(cid:86)(cid:86)(cid:105)(cid:195)(cid:195)(cid:136)(cid:156)(cid:152)(cid:202)(cid:156)(cid:118)(cid:202)(cid:147)(cid:62)(cid:152)(cid:62)(cid:125)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:93)(cid:202)
(cid:85)(cid:202)(cid:202)(cid:147)(cid:156)(cid:152)(cid:136)(cid:204)(cid:156)(cid:192)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:96)(cid:136)(cid:219)(cid:105)(cid:192)(cid:195)(cid:136)(cid:204)(cid:222)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:220)(cid:156)(cid:192)(cid:142)(cid:118)(cid:156)(cid:192)(cid:86)(cid:105)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:156)(cid:204)(cid:133)(cid:105)(cid:192)(cid:220)(cid:136)(cid:195)(cid:105)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:143)(cid:222)(cid:202)(cid:220)(cid:136)(cid:204)(cid:133)(cid:202)(cid:136)(cid:204)(cid:195)(cid:202)(cid:192)(cid:105)(cid:195)(cid:171)(cid:156)(cid:152)(cid:195)(cid:136)(cid:76)(cid:136)(cid:143)(cid:136)(cid:204)(cid:136)(cid:105)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:96)(cid:213)(cid:204)(cid:136)(cid:105)(cid:195)(cid:202)(cid:62)(cid:195)(cid:202)(cid:195)(cid:105)(cid:204)(cid:202)(cid:118)(cid:156)(cid:192)(cid:204)(cid:133)(cid:202)(cid:136)(cid:152)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:10)(cid:133)(cid:62)(cid:192)(cid:204)(cid:105)(cid:192)(cid:176)

(cid:202)
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(cid:202)

(cid:202)
(cid:202)
(cid:202)
(cid:202)

(cid:202)
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(cid:202)

(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)

None of the individuals serving on the Compensation Committee has ever been an ofﬁcer or employee of the Company. The Board has 
determined that all members of the Compensation Committee satisfy the independence requirements of the NASDAQ corporate governance 
listing standards. All members of the Compensation Committee qualify as “nonemployee directors” for purposes of Rule 16b-3 of the Exchange Act 
and as “outside directors” for purposes of Section 162(m) of the Internal Revenue Code, as amended.

The Compensation Committee met three times in 2012. All members attended each of the Compensation Committee meetings.

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20

 
 
 
 
NOMINATING AND CORPORATE GOVERNANCE COMMITTEE

The Nominating and Corporate Governance Committee (the “Corporate Governance Committee”) shall:
(cid:85)(cid:202)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:143)(cid:222)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:10)(cid:156)(cid:192)(cid:171)(cid:156)(cid:192)(cid:62)(cid:204)(cid:105)(cid:202)(cid:20)(cid:156)(cid:219)(cid:105)(cid:192)(cid:152)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:20)(cid:213)(cid:136)(cid:96)(cid:105)(cid:143)(cid:136)(cid:152)(cid:105)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:195)(cid:195)(cid:136)(cid:195)(cid:204)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:136)(cid:152)(cid:202)(cid:136)(cid:96)(cid:105)(cid:152)(cid:204)(cid:136)(cid:118)(cid:222)(cid:136)(cid:152)(cid:125)(cid:93)(cid:202)(cid:195)(cid:86)(cid:192)(cid:105)(cid:105)(cid:152)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:192)(cid:105)(cid:86)(cid:192)(cid:213)(cid:136)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:181)(cid:213)(cid:62)(cid:143)(cid:136)(cid:119)(cid:105)(cid:96)(cid:202)(cid:136)(cid:152)(cid:96)(cid:136)(cid:219)(cid:136)(cid:96)(cid:213)(cid:62)(cid:143)(cid:195)(cid:202)(cid:204)(cid:156)(cid:202)(cid:76)(cid:105)(cid:86)(cid:156)(cid:147)(cid:105)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:147)(cid:105)(cid:147)(cid:76)(cid:105)(cid:192)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:171)(cid:192)(cid:156)(cid:171)(cid:156)(cid:195)(cid:105)(cid:202)(cid:152)(cid:156)(cid:147)(cid:136)(cid:152)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:195)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:147)(cid:105)(cid:147)(cid:76)(cid:105)(cid:192)(cid:195)(cid:133)(cid:136)(cid:171)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:86)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:147)(cid:105)(cid:147)(cid:76)(cid:105)(cid:192)(cid:195)(cid:133)(cid:136)(cid:171)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:195)(cid:195)(cid:105)(cid:195)(cid:195)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:156)(cid:195)(cid:136)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:136)(cid:204)(cid:195)(cid:202)(cid:86)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:156)(cid:219)(cid:105)(cid:192)(cid:195)(cid:105)(cid:105)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:86)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:195)(cid:202)(cid:204)(cid:133)(cid:105)(cid:192)(cid:105)(cid:156)(cid:118)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:156)(cid:204)(cid:133)(cid:105)(cid:192)(cid:220)(cid:136)(cid:195)(cid:105)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:143)(cid:222)(cid:202)(cid:220)(cid:136)(cid:204)(cid:133)(cid:202)(cid:136)(cid:204)(cid:195)(cid:202)(cid:192)(cid:105)(cid:195)(cid:171)(cid:156)(cid:152)(cid:195)(cid:136)(cid:76)(cid:136)(cid:143)(cid:136)(cid:204)(cid:136)(cid:105)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:96)(cid:213)(cid:204)(cid:136)(cid:105)(cid:195)(cid:202)(cid:62)(cid:195)(cid:202)(cid:195)(cid:105)(cid:204)(cid:202)(cid:118)(cid:156)(cid:192)(cid:204)(cid:133)(cid:202)(cid:136)(cid:152)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:10)(cid:156)(cid:192)(cid:171)(cid:156)(cid:192)(cid:62)(cid:204)(cid:105)(cid:202)(cid:20)(cid:156)(cid:219)(cid:105)(cid:192)(cid:152)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202)(cid:10)(cid:133)(cid:62)(cid:192)(cid:204)(cid:105)(cid:192)(cid:176)

(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)

The Board has determined that all members of the Corporate Governance Committee satisfy the independence requirements of the NASDAQ 
corporate governance listing standards. The Corporate Governance Committee met twice during 2012. All members attended both Corporate 
Governance Committee meetings.

Code of Business Conduct and Ethics

The Board has adopted a Corporate Code of Ethical and Professional Standards for Directors, Ofﬁcers and Employees (the “Code of Ethics”) 
that applies to all of the Company’s directors, ofﬁcers and employees. The purpose and role of this Code of Ethics is to focus our directors, ofﬁcers 
and  employees  on  areas  of  ethical  risk,  provide  guidance  to  help  them  recognize  and  deal  with  ethical  issues,  provide  mechanisms  to  report 
unethical or unlawful conduct, and help enhance and formalize our culture of integrity, honesty and accountability. As required by applicable 
law, the Company will post on the “Corporate Governance” page of the “Investors” section of its website at www.jbhunt.com any amendments or 
waivers of any provision of this Code of Ethics made for the beneﬁt of executive ofﬁcers or directors of the Company.

Corporate Governance Guidelines

The Board has adopted Corporate Governance Guidelines to assist it in exercising its responsibilities to the Company and its stockholders. 

These guidelines address, among other items, director responsibilities, Board Committees and nonemployee director compensation.

Section 16(a) Beneﬁcial Ownership Reporting Compliance

Section 16(a) of the Exchange Act requires each director, ofﬁcer and any individual beneﬁcially owning more than 10% of the Company’s 
common stock to ﬁle with the SEC reports of security ownership and reports on subsequent changes in ownership. These reports are generally due 
within two business days of the transaction giving rise to the reporting obligation.

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To the Company’s knowledge, based solely on a review of the copies of such reports furnished to the Company and written representations that 
no other reports were required, all Section 16(a) ﬁlings were made in a timely manner, with the exception of two ofﬁcers, Nicholas Hobbs and John 
Kuhlow, and one director, Wayne Garrison, who each had one late ﬁling. A Form 4 for each individual correcting the oversight was subsequently 
ﬁled with the SEC in 2012.

Certain Relationships and Related Transactions

The  Corporate  Governance  Committee  is  charged  with  the  responsibility  of  reviewing  and  preapproving  all  related-party  transactions 
(as deﬁned in SEC regulations) and periodically reassessing any related-party transaction entered into by the Company in accordance with the 
Company’s Code of Ethics.

Bryan Hunt is the son of Johnelle Hunt, a principal stockholder of the Company. There are no other family relationships among the 

foregoing directors.

A son-in-law of Kirk Thompson, Chairman of the Board of the Company, was employed by the Company in calendar year 2012 and earned 

$428,532 in 2012 compensation. He was also employed in calendar year 2000, prior to becoming Mr. Thompson’s son-in-law.

In August 2010, the Company made a gift of $5,000,000 to Arkansas Children’s Hospital. The gift is payable in equal increments over a 
10-year period beginning in calendar year 2011. Sharilyn S. Gasaway is currently a member of the Board of Directors of Arkansas Children’s 
Hospital. However, at the time of the gift, Mrs. Gasaway was not associated with this organization, nor was she instrumental in the Company’s 
decision to support the medical facility.

In December 2008, the Company made a gift of $250,000 to Northwest Arkansas Community College. The gift is payable in equal increments 
over a 10-year period beginning in calendar year 2009. At the time of the gift, Coleman H. Peterson served as Chairman of the Board of Trustees 
of this organization. Mr. Peterson did not solicit the contribution on behalf of the organization, nor was he instrumental in the Company’s decision 
to support the local junior college.

Compensation Committee Interlocks and Insider Participation

During the 2012 calendar year, none of the Company’s executive ofﬁcers served on the Board of Directors or Compensation Committees 
of any entity whose directors or ofﬁcers served on the Company’s Board or Compensation Committee. No current or past executive ofﬁcers or 
employees of the Company served on the Compensation Committee.

21

 
 
 
 
 
 
 
 
 
 
 
 
 
PRINCIPAL STOCKHOLDERS OF THE COMPANY

The following table sets forth all persons known to be the beneﬁcial owner of more than 5% of the Company’s common stock as of 
December 31, 2012. Unless otherwise indicated in the footnotes below, “beneﬁcially owned” means the sole or shared power to vote or direct 
the voting of a security or the sole or shared power to dispose or direct the disposition of a security.

Name and Address 
Johnelle Hunt 
3333 Pinnacle Hills Parkway 
Rogers, AR 72756

T. Rowe Price Associates, Inc. 
100 East Pratt Street
Baltimore, MD 21202

FMR LLC 
82 Devonshire Street
Boston, MA 02109 

BlackRock, Inc. 
40 East 52nd Street
New York, NY 10022 

Number 
of shares 
19,955,232 

7,304,544 

6,769,872 

  5,917,101 

Percent of
Class
17.0%

6.1%

5.7%

5.0%

Information  relating  to  Johnelle  Hunt  is  based  on  the  stockholder’s  Form  5,  ﬁled  with  the  SEC  on  February  14,  2013  Information 
pertaining to the ownership of T. Rowe Price, FMR LLC, and BlackRock, Inc. is based on the organization’s Schedule 13G ﬁled with the SEC 
on February 13, 2013, February 14, 2013, and January 30, 2013, respectively.

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22

 
 
 
 
REPORT OF THE EXECUTIVE COMPENSATION COMMITTEE

The Executive Compensation Committee (the “Compensation Committee”) is composed of Coleman H. Peterson, Chairman, Francesca 
M. Edwardson, Gary C. George and John A. White, none of whom is an ofﬁcer or employee of the Company and all of whom have been determined 
by the Board of Directors of the Company (the “Board”) to be independent. Additionally, all members of the Compensation Committee qualify as 
“nonemployee directors” for purposes of Rule 16b-3 of the Exchange Act and as “outside directors” for purposes of Section 162(m) of the Internal 
Revenue Code, as amended (the “Code”). 

The  Compensation  Committee  operates  under  a  written  charter  adopted  by  the  Board,  a  copy  of  which  is  available  on  the  “Corporate 
Governance” page of the “Investors” section of the Company’s website at www.jbhunt.com. In carrying out its responsibilities, the Compensation 
Committee, among other things:
(cid:202)

(cid:85)(cid:202)(cid:202)(cid:105)(cid:219)(cid:62)(cid:143)(cid:213)(cid:62)(cid:204)(cid:105)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:192)(cid:105)(cid:86)(cid:156)(cid:147)(cid:147)(cid:105)(cid:152)(cid:96)(cid:195)(cid:202)(cid:204)(cid:156)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:136)(cid:152)(cid:96)(cid:105)(cid:171)(cid:105)(cid:152)(cid:96)(cid:105)(cid:152)(cid:204)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:147)(cid:105)(cid:147)(cid:76)(cid:105)(cid:192)(cid:195)(cid:93)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:204)(cid:133)(cid:105)(cid:136)(cid:192)(cid:202)(cid:62)(cid:171)(cid:171)(cid:192)(cid:156)(cid:219)(cid:62)(cid:143)(cid:93)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:195)(cid:62)(cid:143)(cid:62)(cid:192)(cid:136)(cid:105)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:76)(cid:156)(cid:152)(cid:213)(cid:195)(cid:105)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:133)(cid:62)(cid:136)(cid:192)(cid:147)(cid:62)(cid:152)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)

Board and the Chief Executive Ofﬁcer,

(cid:202)

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(cid:202)
(cid:202)
(cid:202)
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(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:62)(cid:171)(cid:171)(cid:192)(cid:156)(cid:219)(cid:105)(cid:195)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:86)(cid:156)(cid:192)(cid:171)(cid:156)(cid:192)(cid:62)(cid:204)(cid:105)(cid:202)(cid:125)(cid:156)(cid:62)(cid:143)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:156)(cid:76)(cid:141)(cid:105)(cid:86)(cid:204)(cid:136)(cid:219)(cid:105)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:133)(cid:62)(cid:136)(cid:192)(cid:147)(cid:62)(cid:152)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:133)(cid:136)(cid:105)(cid:118)(cid:202)(cid:13)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:34)(cid:118)(cid:119)(cid:86)(cid:105)(cid:192)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:156)(cid:204)(cid:133)(cid:105)(cid:192)(cid:202)

Section 16 reporting ofﬁcers,

(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:86)(cid:156)(cid:147)(cid:147)(cid:105)(cid:152)(cid:96)(cid:195)(cid:202) (cid:118)(cid:156)(cid:192)(cid:202) (cid:62)(cid:171)(cid:171)(cid:192)(cid:156)(cid:219)(cid:62)(cid:143)(cid:202) (cid:204)(cid:156)(cid:202) (cid:204)(cid:133)(cid:105)(cid:202) (cid:136)(cid:152)(cid:96)(cid:105)(cid:171)(cid:105)(cid:152)(cid:96)(cid:105)(cid:152)(cid:204)(cid:202) (cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202) (cid:147)(cid:105)(cid:147)(cid:76)(cid:105)(cid:192)(cid:195)(cid:202) (cid:105)(cid:181)(cid:213)(cid:136)(cid:204)(cid:222)(cid:135)(cid:76)(cid:62)(cid:195)(cid:105)(cid:96)(cid:202) (cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202) (cid:62)(cid:220)(cid:62)(cid:192)(cid:96)(cid:195)(cid:202) (cid:213)(cid:152)(cid:96)(cid:105)(cid:192)(cid:202) (cid:204)(cid:133)(cid:105)(cid:202) (cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202) (cid:31)(cid:62)(cid:152)(cid:62)(cid:125)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202)

Incentive Plan (the “MIP”), as amended and restated, for the Chairman of the Board and the Chief Executive Ofﬁcer,

(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:62)(cid:171)(cid:171)(cid:192)(cid:156)(cid:219)(cid:105)(cid:195)(cid:202)(cid:105)(cid:181)(cid:213)(cid:136)(cid:204)(cid:222)(cid:135)(cid:76)(cid:62)(cid:195)(cid:105)(cid:96)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:62)(cid:220)(cid:62)(cid:192)(cid:96)(cid:195)(cid:202)(cid:213)(cid:152)(cid:96)(cid:105)(cid:192)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:31)(cid:22)(cid:42)(cid:93)(cid:202)(cid:62)(cid:195)(cid:202)(cid:62)(cid:147)(cid:105)(cid:152)(cid:96)(cid:105)(cid:96)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:192)(cid:105)(cid:195)(cid:204)(cid:62)(cid:204)(cid:105)(cid:96)(cid:93)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:45)(cid:105)(cid:86)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:163)(cid:200)(cid:202)(cid:192)(cid:105)(cid:171)(cid:156)(cid:192)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)

ofﬁcers,

(cid:85)(cid:202)(cid:202)(cid:105)(cid:195)(cid:204)(cid:62)(cid:76)(cid:143)(cid:136)(cid:195)(cid:133)(cid:105)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:86)(cid:105)(cid:192)(cid:204)(cid:136)(cid:119)(cid:105)(cid:195)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:62)(cid:86)(cid:133)(cid:136)(cid:105)(cid:219)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202)(cid:156)(cid:118)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:125)(cid:156)(cid:62)(cid:143)(cid:195)(cid:202)(cid:213)(cid:152)(cid:96)(cid:105)(cid:192)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:136)(cid:152)(cid:86)(cid:105)(cid:152)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:135)(cid:76)(cid:62)(cid:195)(cid:105)(cid:96)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:171)(cid:143)(cid:62)(cid:152)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:62)(cid:171)(cid:171)(cid:192)(cid:156)(cid:219)(cid:105)(cid:195)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:192)(cid:105)(cid:86)(cid:156)(cid:147)(cid:147)(cid:105)(cid:152)(cid:96)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:195)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:96)(cid:136)(cid:192)(cid:105)(cid:86)(cid:204)(cid:156)(cid:192)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:195)(cid:202)(cid:156)(cid:204)(cid:133)(cid:105)(cid:192)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:202)(cid:105)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:171)(cid:192)(cid:156)(cid:125)(cid:192)(cid:62)(cid:147)(cid:195)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:195)(cid:202) (cid:62)(cid:152)(cid:96)(cid:202) (cid:62)(cid:171)(cid:171)(cid:192)(cid:156)(cid:219)(cid:105)(cid:195)(cid:202) (cid:204)(cid:133)(cid:105)(cid:202) (cid:10)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202) (cid:10)(cid:156)(cid:147)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:105)(cid:202) (cid:192)(cid:105)(cid:171)(cid:156)(cid:192)(cid:204)(cid:202) (cid:204)(cid:156)(cid:202) (cid:204)(cid:133)(cid:105)(cid:202) (cid:195)(cid:204)(cid:156)(cid:86)(cid:142)(cid:133)(cid:156)(cid:143)(cid:96)(cid:105)(cid:192)(cid:195)(cid:202) (cid:62)(cid:152)(cid:96)(cid:202) (cid:204)(cid:133)(cid:105)(cid:202) (cid:10)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202) (cid:12)(cid:136)(cid:195)(cid:86)(cid:213)(cid:195)(cid:195)(cid:136)(cid:156)(cid:152)(cid:202) (cid:62)(cid:152)(cid:96)(cid:202) (cid:1)(cid:152)(cid:62)(cid:143)(cid:222)(cid:195)(cid:136)(cid:195)(cid:202) (cid:173)(cid:204)(cid:133)(cid:105)(cid:202)

“CD&A”) report included in the Proxy.

The Chairman of the Board recommends to the Compensation Committee the form and amount of compensation to be paid to the Chief 
Executive Ofﬁcer. The Chief Executive Ofﬁcer provides recommendations to the Compensation Committee regarding the form and amount of 
compensation to be paid to executive ofﬁcers who report directly to him. Additionally, the Chairman of the Board, the Chief Executive Ofﬁcer 
and the Chief Financial Ofﬁcer regularly attend Compensation Committee meetings, except for executive sessions. Traditionally, management has 
provided to the Compensation Committee historical and prospective breakdowns of primary compensation components for each executive ofﬁcer, 
as well as tally sheets, wealth accumulation analyses and internal pay equity analyses as described in more detail below.

At our 2011 Annual Meeting, the stockholders approved, on an advisory basis, the compensation of the named executive ofﬁcers (98.6% 
of votes cast), and voted for approval of a frequency of holding future advisory votes every three years with respect to named executive ofﬁcer 
compensation (51% of votes cast). The Compensation Committee believes this level of stockholder support reﬂects a strong endorsement of the 
Company’s compensation policies and decisions. The Compensation Committee has considered the results of this advisory vote on executive 
compensation in determining the Company’s compensation policies and decisions for 2013, and has determined that these policies and decisions 
are appropriate and in the best interests of the Company and its stockholders at this time.

In 2012, the Compensation Committee engaged Meridian Compensation Partners, LLC (“Meridian”) to review the Company’s executive 
compensation policies and practices. Meridian was also directed to determine a comparable peer group for executive compensation purposes and to 
report considerations regarding changes in compensation levels for the NEOs to bring them into the 75th percentile of total direct compensation 
of the peer group. Meridian is retained by, and reports to, the Compensation Committee to provide compensation analyses and consultation at the 
Committee’s request. Meridian was paid $47,876 for the consulting engagement and provides no other services to the Company.

The Compensation Committee met three times in 2012 to discuss, among other items, the salaries, bonuses and other compensation of the 
senior executive ofﬁcers and other key employees of the Company, including the Chairman of the Board and the Chief Executive Ofﬁcer. The 
Compensation Committee did not act by unanimous consent at any time in 2012.

Historically, the Compensation Committee meets each February to ﬁnalize discussion regarding the Company’s performance goals for the 
previous and current year with respect to performance-based compensation to be paid to executive ofﬁcers and to approve its letter for the Proxy 
Statement. These goals are approved within 90 days of the beginning of the year, pursuant to the Code. During the third quarter of each year, 
the Compensation Committee generally discusses any new compensation issues, the base compensation, bonus and MIP award analyses, and the 
engagement of the compensation consultant for annual executive and director compensation surveys. The Compensation Committee also meets 
during the fourth quarter to:
(cid:202)

(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:96)(cid:136)(cid:195)(cid:86)(cid:213)(cid:195)(cid:195)(cid:202)(cid:136)(cid:152)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:171)(cid:192)(cid:156)(cid:219)(cid:136)(cid:96)(cid:105)(cid:96)(cid:202)(cid:76)(cid:222)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:86)(cid:156)(cid:152)(cid:195)(cid:213)(cid:143)(cid:204)(cid:62)(cid:152)(cid:204)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:192)(cid:105)(cid:86)(cid:156)(cid:147)(cid:147)(cid:105)(cid:152)(cid:96)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:195)(cid:202)(cid:147)(cid:62)(cid:96)(cid:105)(cid:202)(cid:76)(cid:222)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:133)(cid:62)(cid:136)(cid:192)(cid:147)(cid:62)(cid:152)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)(cid:202)

and the Chief Executive Ofﬁcer,

(cid:202)
(cid:202)

(cid:202)

(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:136)(cid:152)(cid:96)(cid:136)(cid:219)(cid:136)(cid:96)(cid:213)(cid:62)(cid:143)(cid:202)(cid:156)(cid:118)(cid:119)(cid:86)(cid:105)(cid:192)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:105)(cid:221)(cid:204)(cid:105)(cid:152)(cid:204)(cid:202)(cid:204)(cid:156)(cid:202)(cid:220)(cid:133)(cid:136)(cid:86)(cid:133)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:125)(cid:156)(cid:62)(cid:143)(cid:195)(cid:202)(cid:220)(cid:105)(cid:192)(cid:105)(cid:202)(cid:62)(cid:204)(cid:204)(cid:62)(cid:136)(cid:152)(cid:105)(cid:96)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:62)(cid:171)(cid:171)(cid:192)(cid:156)(cid:219)(cid:105)(cid:202)(cid:195)(cid:133)(cid:156)(cid:192)(cid:204)(cid:135)(cid:204)(cid:105)(cid:192)(cid:147)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:202)(cid:76)(cid:156)(cid:152)(cid:213)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:143)(cid:156)(cid:152)(cid:125)(cid:135)(cid:204)(cid:105)(cid:192)(cid:147)(cid:202)(cid:136)(cid:152)(cid:86)(cid:105)(cid:152)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)

awards, and

(cid:85)(cid:202)(cid:202)(cid:96)(cid:105)(cid:204)(cid:105)(cid:192)(cid:147)(cid:136)(cid:152)(cid:105)(cid:202)(cid:105)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:195)(cid:189)(cid:202)(cid:76)(cid:62)(cid:195)(cid:105)(cid:202)(cid:195)(cid:62)(cid:143)(cid:62)(cid:192)(cid:136)(cid:105)(cid:195)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:118)(cid:156)(cid:143)(cid:143)(cid:156)(cid:220)(cid:136)(cid:152)(cid:125)(cid:202)(cid:222)(cid:105)(cid:62)(cid:192)(cid:176)

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23

 
 
 
 
 
 
 
  Management  also  advises  the  full  Board,  including  the  Compensation  Committee  members,  throughout  the  year  of  any  new  issues  and 
developments regarding executive compensation.

The  Compensation  Committee  has  reviewed  and  discussed  the  following  CD&A  with  management,  and  based  upon  such  review  and 

discussions, the Compensation Committee recommended to the Board that the CD&A be included in the Company’s Proxy Statement.

J.B. Hunt Transport Services, Inc.
2012 Executive Compensation Committee
Coleman H. Peterson, Chairman
Francesca M. Edwardson
Gary C. George
John A. White

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COMPENSATION DISCUSSION AND ANALYSIS
Introduction

The Compensation Discussion and Analysis provides information regarding the compensation paid to our President and Chief Executive 
Ofﬁcer, Chief Financial Ofﬁcer and certain other executive ofﬁcers who were the most highly compensated in calendar year 2012. These individuals, 
referred to collectively as “named executive ofﬁcers” or NEOs, are identiﬁed below:
(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)

(cid:85)(cid:202)(cid:202)(cid:27)(cid:156)(cid:133)(cid:152)(cid:202)(cid:32)(cid:176)(cid:202)(cid:44)(cid:156)(cid:76)(cid:105)(cid:192)(cid:204)(cid:195)(cid:93)(cid:202)(cid:22)(cid:22)(cid:22)(cid:202)(cid:113)(cid:202)(cid:42)(cid:192)(cid:105)(cid:195)(cid:136)(cid:96)(cid:105)(cid:152)(cid:204)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:10)(cid:133)(cid:136)(cid:105)(cid:118)(cid:202)(cid:13)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:34)(cid:118)(cid:119)(cid:86)(cid:105)(cid:192)
(cid:85)(cid:202)(cid:202)(cid:12)(cid:62)(cid:219)(cid:136)(cid:96)(cid:202)(cid:20)(cid:176)(cid:202)(cid:31)(cid:105)(cid:105)(cid:202)(cid:113)(cid:202)(cid:13)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:54)(cid:136)(cid:86)(cid:105)(cid:202)(cid:42)(cid:192)(cid:105)(cid:195)(cid:136)(cid:96)(cid:105)(cid:152)(cid:204)(cid:93)(cid:202)(cid:19)(cid:136)(cid:152)(cid:62)(cid:152)(cid:86)(cid:105)(cid:201)(cid:1)(cid:96)(cid:147)(cid:136)(cid:152)(cid:136)(cid:195)(cid:204)(cid:192)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:93)(cid:202)(cid:10)(cid:133)(cid:136)(cid:105)(cid:118)(cid:202)(cid:19)(cid:136)(cid:152)(cid:62)(cid:152)(cid:86)(cid:136)(cid:62)(cid:143)(cid:202)(cid:34)(cid:118)(cid:119)(cid:86)(cid:105)(cid:192)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:10)(cid:156)(cid:192)(cid:171)(cid:156)(cid:192)(cid:62)(cid:204)(cid:105)(cid:202)(cid:45)(cid:105)(cid:86)(cid:192)(cid:105)(cid:204)(cid:62)(cid:192)(cid:222)
(cid:85)(cid:202)(cid:202)(cid:28)(cid:136)(cid:192)(cid:142)(cid:202)(cid:47)(cid:133)(cid:156)(cid:147)(cid:171)(cid:195)(cid:156)(cid:152)(cid:202)(cid:113)(cid:202)(cid:10)(cid:133)(cid:62)(cid:136)(cid:192)(cid:147)(cid:62)(cid:152)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:9)(cid:156)(cid:62)(cid:192)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:47)(cid:105)(cid:192)(cid:192)(cid:105)(cid:152)(cid:86)(cid:105)(cid:202)(cid:12)(cid:176)(cid:202)(cid:31)(cid:62)(cid:204)(cid:204)(cid:133)(cid:105)(cid:220)(cid:195)(cid:202)(cid:113)(cid:202)(cid:13)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:54)(cid:136)(cid:86)(cid:105)(cid:202)(cid:42)(cid:192)(cid:105)(cid:195)(cid:136)(cid:96)(cid:105)(cid:152)(cid:204)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:42)(cid:192)(cid:105)(cid:195)(cid:136)(cid:96)(cid:105)(cid:152)(cid:204)(cid:202)(cid:156)(cid:118)(cid:202)(cid:22)(cid:152)(cid:204)(cid:105)(cid:192)(cid:147)(cid:156)(cid:96)(cid:62)(cid:143)
(cid:85)(cid:202)(cid:202)(cid:10)(cid:192)(cid:62)(cid:136)(cid:125)(cid:202)(cid:21)(cid:62)(cid:192)(cid:171)(cid:105)(cid:192)(cid:202)(cid:113)(cid:202)(cid:13)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:54)(cid:136)(cid:86)(cid:105)(cid:202)(cid:42)(cid:192)(cid:105)(cid:195)(cid:136)(cid:96)(cid:105)(cid:152)(cid:204)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:10)(cid:133)(cid:136)(cid:105)(cid:118)(cid:202)(cid:34)(cid:171)(cid:105)(cid:192)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:195)(cid:202)(cid:34)(cid:118)(cid:119)(cid:86)(cid:105)(cid:192)

Compensation Philosophy and Principles

The Compensation Committee acknowledges that the transportation industry is highly competitive and that experienced professionals have 
career mobility. The Company believes that it competes for executive talent with a large number of companies, some of which have signiﬁcantly 
larger market capitalizations and others of which are privately owned. Retention of key talent remains critical to our success. The Company’s need 
to focus on retention is compounded by its size and geographic location. The Company’s compensation program is structured to attract, retain 
and develop executive talent with the ability to assume a broad span of responsibilities and successfully lead complex business units to market-
leading positions in the industry. The Compensation Committee believes that the ability to attract, retain and provide appropriate incentives for 
professional personnel, including the senior executive ofﬁcers and other key employees of the Company, is essential to maintaining the Company’s 
leading competitive position, thereby providing for the long-term success of the Company. The Compensation Committee’s goal is to maintain 
compensation programs that are competitive within the transportation industry. Each year, the Compensation Committee reviews the executive 
compensation program with respect to the external competitiveness and linkage between executive compensation and the creation of stockholder 
value and determines what changes, if any, are appropriate.

(cid:202)

(cid:202)

(cid:202)

(cid:202)

The overall compensation philosophy of the Compensation Committee and management is guided by the following principles:
(cid:85)(cid:202)(cid:202)Compensation levels should be sufﬁciently competitive to attract and retain key talent. The Company aims to attract, motivate and retain high-
performance talent to achieve and maintain a leading position in its industry. Our total compensation package should be strongly competitive 
with other transportation companies.

(cid:85)(cid:202)(cid:202)Compensation should relate directly to performance and responsibility. Total compensation should be tied to and vary with performance and 
responsibility, both at the Company and individual level, in achieving ﬁnancial, operational and strategic objectives. Differentiated pay for 
high performing individuals should be proportional to their contributions to the Company’s success.

(cid:85)(cid:202)(cid:202)Short-term incentive compensation should constitute a signiﬁcant portion of total executive compensation. A large portion of total compensation 
should be tied to performance, and therefore at risk, as position and responsibility increase. Individuals with greater roles and the ability to 
directly impact strategic direction and long-term results should bear a greater proportion of the risk.

(cid:85)(cid:202)(cid:202)Long-term incentive compensation, the Company’s MIP, should be closely aligned with stockholders’ interests. Awards of long-term compensation 
encourage executive ofﬁcers to focus on the Company’s long-range growth and development and incent them to manage from the perspective 
of stockholders with a meaningful stake in the Company, as well as to focus on long-term career orientation. Participants in the MIP are 
required to own Company stock. The requirements are discussed in this CD&A under the caption “Stock Ownership Guidelines.”

The Company’s executive compensation program is designed to reward the achievement of initiatives regarding growth, productivity and 

people, including:
(cid:202)

(cid:85)(cid:202)(cid:202)(cid:195)(cid:105)(cid:204)(cid:204)(cid:136)(cid:152)(cid:125)(cid:93)(cid:202)(cid:136)(cid:147)(cid:171)(cid:143)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:86)(cid:156)(cid:147)(cid:147)(cid:213)(cid:152)(cid:136)(cid:86)(cid:62)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:195)(cid:204)(cid:192)(cid:62)(cid:204)(cid:105)(cid:125)(cid:136)(cid:105)(cid:195)(cid:93)(cid:202)(cid:125)(cid:156)(cid:62)(cid:143)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:156)(cid:76)(cid:141)(cid:105)(cid:86)(cid:204)(cid:136)(cid:219)(cid:105)(cid:195)(cid:202)(cid:204)(cid:156)(cid:202)(cid:105)(cid:152)(cid:195)(cid:213)(cid:192)(cid:105)(cid:202)(cid:204)(cid:133)(cid:62)(cid:204)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:202)(cid:125)(cid:192)(cid:156)(cid:220)(cid:195)(cid:202)(cid:192)(cid:105)(cid:219)(cid:105)(cid:152)(cid:213)(cid:105)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:105)(cid:62)(cid:192)(cid:152)(cid:136)(cid:152)(cid:125)(cid:195)(cid:202)(cid:62)(cid:204)(cid:202)(cid:192)(cid:62)(cid:204)(cid:105)(cid:195)(cid:202)

that are comparable to or greater than those of our peers and that create value for our stockholders,

(cid:85)(cid:202)(cid:202)(cid:147)(cid:156)(cid:204)(cid:136)(cid:219)(cid:62)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:105)(cid:221)(cid:133)(cid:136)(cid:76)(cid:136)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:143)(cid:105)(cid:62)(cid:96)(cid:105)(cid:192)(cid:195)(cid:133)(cid:136)(cid:171)(cid:202)(cid:204)(cid:133)(cid:62)(cid:204)(cid:202)(cid:62)(cid:143)(cid:136)(cid:125)(cid:152)(cid:195)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:136)(cid:152)(cid:204)(cid:105)(cid:192)(cid:105)(cid:195)(cid:204)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:156)(cid:213)(cid:192)(cid:202)(cid:105)(cid:147)(cid:171)(cid:143)(cid:156)(cid:222)(cid:105)(cid:105)(cid:195)(cid:202)(cid:220)(cid:136)(cid:204)(cid:133)(cid:202)(cid:204)(cid:133)(cid:156)(cid:195)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:156)(cid:213)(cid:192)(cid:202)(cid:195)(cid:204)(cid:156)(cid:86)(cid:142)(cid:133)(cid:156)(cid:143)(cid:96)(cid:105)(cid:192)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:96)(cid:105)(cid:219)(cid:105)(cid:143)(cid:156)(cid:171)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:202)(cid:125)(cid:192)(cid:62)(cid:195)(cid:171)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:204)(cid:136)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:105)(cid:152)(cid:219)(cid:136)(cid:192)(cid:156)(cid:152)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:204)(cid:62)(cid:142)(cid:136)(cid:152)(cid:125)(cid:202)(cid:195)(cid:204)(cid:105)(cid:171)(cid:195)(cid:202)(cid:204)(cid:156)(cid:202)(cid:171)(cid:156)(cid:195)(cid:136)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:125)(cid:192)(cid:156)(cid:220)(cid:204)(cid:133)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:62)(cid:195)(cid:202)(cid:62)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:204)(cid:136)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:118)(cid:156)(cid:192)(cid:86)(cid:105)(cid:202)(cid:136)(cid:152)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)

industry,

(cid:85)(cid:202)(cid:202)(cid:86)(cid:156)(cid:152)(cid:195)(cid:204)(cid:62)(cid:152)(cid:204)(cid:143)(cid:222)(cid:202)(cid:192)(cid:105)(cid:152)(cid:105)(cid:220)(cid:136)(cid:152)(cid:125)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:76)(cid:213)(cid:195)(cid:136)(cid:152)(cid:105)(cid:195)(cid:195)(cid:202)(cid:147)(cid:156)(cid:96)(cid:105)(cid:143)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:195)(cid:105)(cid:105)(cid:142)(cid:136)(cid:152)(cid:125)(cid:202)(cid:195)(cid:204)(cid:192)(cid:62)(cid:204)(cid:105)(cid:125)(cid:136)(cid:86)(cid:202)(cid:156)(cid:171)(cid:171)(cid:156)(cid:192)(cid:204)(cid:213)(cid:152)(cid:136)(cid:204)(cid:136)(cid:105)(cid:195)(cid:202)(cid:204)(cid:133)(cid:62)(cid:204)(cid:202)(cid:76)(cid:105)(cid:152)(cid:105)(cid:119)(cid:204)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:136)(cid:204)(cid:195)(cid:202)(cid:195)(cid:204)(cid:156)(cid:86)(cid:142)(cid:133)(cid:156)(cid:143)(cid:96)(cid:105)(cid:192)(cid:195)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:136)(cid:147)(cid:171)(cid:143)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:62)(cid:202)(cid:96)(cid:136)(cid:195)(cid:86)(cid:136)(cid:171)(cid:143)(cid:136)(cid:152)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:143)(cid:136)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:118)(cid:156)(cid:86)(cid:213)(cid:195)(cid:136)(cid:152)(cid:125)(cid:202)(cid:156)(cid:152)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:133)(cid:136)(cid:125)(cid:133)(cid:105)(cid:195)(cid:204)(cid:202)(cid:195)(cid:204)(cid:62)(cid:152)(cid:96)(cid:62)(cid:192)(cid:96)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:171)(cid:192)(cid:156)(cid:118)(cid:105)(cid:195)(cid:195)(cid:136)(cid:156)(cid:152)(cid:62)(cid:143)(cid:202)(cid:86)(cid:156)(cid:152)(cid:96)(cid:213)(cid:86)(cid:204)(cid:176)

(cid:202)
(cid:202)

(cid:202)
(cid:202)

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PROCESS OF SETTING COMPENSATION
Benchmarking Against A Peer Group

The Compensation Committee engaged Meridian to perform a competitive market assessment for the NEOs to evaluate base salary, target 

annual incentives, target total cash compensation, long-term incentives and total direct compensation.

The assessment involved the selection of a peer group, as noted below, consisting of 13 transportation and logistics companies in the national 

marketplace. These companies represent both business competition and the most relevant labor market for our executives.

Arkansas Best Corporation 
Expeditors Int’l of Washington, Inc. 
Landstar System, Inc. 
Ryder System, Inc. 
  Werner Enterprises, Inc. 

CH Robinson Worldwide, Inc. 
Hub Group, Inc. 
Old Dominion Freight Line, Inc. 
Swift Transportation Company  

CON-Way, Inc.
Kansas City Southern
Pacer International, Inc.
UTI Worldwide, Inc.

The  Compensation  Committee  utilized  a  different  peer  group  of  15  companies  for  the  Executive  Chairman/Non-CEO  position.  These 

companies are similar to the Company in size, revenue or market capitalization, and have a comparable chairman role.

Atmos Energy Corporation 
Constellation Brands, Inc. 
Hyatt Hotels Corp. 
  Mueller Industries 

Regal Entertainment Group 

Avis Budget Group, Inc. 
Dole Food Co., Inc. 
Kansas City Southern 
Old Dominion Freight Line, Inc. 
The Timken Company 

Cablevision Systems Corporation
Host Hotels & Resorts, Inc.
Live Nation Entertainment, Inc.
O’Reilly Automotive, Inc.
Werner Enterprises, Inc.

The Compensation Committee decided that the appropriate comparative total compensation target should be at the 75th percentile of the 

respective peer group.

Compensation Analysis Tools

In addition to the competitive compensation survey information for each ofﬁcer that was compiled, the Compensation Committee also 
reviewed a three-year history of executive compensation tally sheets. The Compensation Committee anticipates that pertinent compensation 
information will continue to be developed and enhanced to allow the Committee to perform the most relevant analyses practicable.

Our objective for total executive compensation is to provide compensation in the 75th percentile of the respective peer group. We arrived 
at this conclusion because of our size and performance compared with the peer group. We believe that a sizeable portion of overall compensation 
should be at risk and tied to stockholder value. Our bonuses are tied to earnings per share (“EPS”); as EPS increases, so do executive bonuses. Long-
term incentives are used as tools to reward executives for current and future performance, to encourage an executive to remain with the Company 
and to align the executive’s interests with those of our stockholders. As part of our long-term incentive strategy, executives are expected to maintain 
stock ownership values as a multiple of their base salary. While certain components of compensation are directly tied to the Company’s reported 
ﬁnancial  performance,  sufﬁcient  accounting  and  operational  controls  are  in  place  and  effective  to  ensure  that  the  Company’s  compensation 
practices and policies, including those for nonexecutives, are not reasonably likely to have a material adverse effect on the Company.

Our Company has a 401(k) plan that assists participants in providing for retirement. The Company contributes to each NEO’s account per 
year based on the NEO’s voluntary contribution amount. This “match,” however, was suspended from March 1, 2009, until July 1, 2010. The 
equity buildup in unvested equity-based awards and stock owned currently is critical to each executive’s ability to adequately provide for his or 
her retirement. As previously mentioned and explained in detail later, we have a Company stock ownership policy for our executives, but we 
do not have a “hold until retirement” restriction. We do not believe that such a restriction is prudent for the employee or necessary to protect 
our Company.

Tally Sheets

A compensation tally sheet for each of the NEOs was prepared and reviewed by the Compensation Committee in 2012. These tally sheets 
detail a three-year history of dollar amounts for components of the NEO’s total compensation, including current salary and estimated cash bonus, 
equity-based awards, change in control severance payments, if any, personal beneﬁts, if any, and other perquisites.

Long-Term Compensation Analyses and Policies
  With respect to long-term, equity-based awards, the Company maintains the MIP. The MIP was originally adopted and approved by the 
Board on March 17, 1989, and an amended and restated MIP was subsequently approved by the stockholders on May 11, 1995. The MIP has been 
amended and restated since the time of its adoption, and all amendments requiring approval of the stockholders have been approved, with the last 
approval occurring at our Annual Meeting of Stockholders held in 2012. Currently, there are 44 million shares of common stock authorized for 
issuance under the MIP, of which approximately 9 million shares are available for future options and other awards.

Restricted share units and stock options of the Company are granted under the MIP in an effort to link future compensation to the long-
term ﬁnancial success of the Company. These equity-based awards are granted to executive ofﬁcers, including the NEOs, and other key employees 

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(approximately 315 individuals) and are intended to attract and retain employees, to provide incentives to enhance job performance, and to enable 
those persons to participate in the long-term success and growth of the Company through an equity interest in the Company.

The Compensation Committee typically grants time-vested restricted share units under the MIP to non-NEO employees of the Company, 
while granting performance-based restricted share units to the NEOs of the Company. The future vesting of performance-based awards is contingent 
on the Company’s attainment of predetermined performance metrics established by the Compensation Committee. The Compensation Committee 
believes that restricted share units, both time-vested and performance-based, are currently more effective than stock options in achieving the 
Company’s compensation objectives, as these grants are subject to less market volatility and are less dilutive to stockholders. Employees realize 
immediate value as restricted share units vest, with such value increasing as the Company’s stock performance increases. Cash dividends are not 
paid and there are no voting rights on unvested restricted share units.

The Company does not have a formal policy, but has an established practice described below, with respect to the granting of any form of 
equity compensation. The Company does not have a policy or practice of either timing equity-based compensation grants to current or new 
executive ofﬁcers, or timing the release of material, nonpublic information to affect the value of executive compensation. Recommendations for 
all Section 16 ﬁlers, except for the Chairman of the Board and the Chief Executive Ofﬁcer, are presented to the Compensation Committee by the 
Chief Executive Ofﬁcer. The Chairman of the Board recommends to the Compensation Committee the award for the Chief Executive Ofﬁcer. 
The Compensation Committee approves or adjusts the award using the above tools for all Section 16 ﬁlers, except for the Chairman of the Board 
and the Chief Executive Ofﬁcer. The awards for the Chairman of the Board and Chief Executive Ofﬁcer are recommended by the Compensation 
Committee and submitted for ﬁnal approval to the Company’s independent Board members. This process occurs in late October or early November 
of each year to coincide with our third-quarter Board meeting. We consider this our annual award date. The Compensation Committee does not 
expect to delegate approval authority to grant awards to management or any subcommittee at this time or in the near future. The grant date is 
typically set by the Compensation Committee. Historically, annual awards of equity compensation have been granted to all awardees, including the 
NEOs, in October. In 2012, 333,244 grants were made on October 24, and 83,000 grants were made on October 25, the date of the third-quarter 
Board meeting. Grants have been made in months other than the annual award date on a very limited basis. The limited exceptions to this grant-
date practice have included, for example, the hiring of a key employee or the promotion of an employee to an executive ofﬁce.

The Compensation Committee anticipates that it will continue adhering to these general grant dates for the foreseeable future for administrative 
ease and consistency. Awards are made in the fourth quarter because the Compensation Committee has a good view as to the Company’s ﬁnancial 
performance and the executive’s individual performance for the current year and has the most recently available competitive market data.

Pursuant to the provisions of the MIP, all stock options are granted with an exercise price equal to 100% of the fair market value of the 
Company’s common stock on the grant date. Stock options are generally exercisable over ﬁve to 10 years from the grant date. The exercise price of 
stock options may be satisﬁed with payment of cash or previously owned Company stock or through a cashless simultaneous exercise and sale. In 
response to emerging changes in the area of accounting for equity-based compensation and to position ourselves competitively with our peers, the 
Compensation Committee began granting restricted share units in lieu of stock options under the MIP in 2005. The Compensation Committee 
anticipates granting restricted share units in lieu of stock options for the foreseeable future, but in the event stock options are granted, such stock 
options will be granted under the terms discussed above. Similar to stock options, the total number of restricted share units that may be awarded 
to an individual is within the discretion of the Compensation Committee but also limited by the MIP and is generally based on the Company’s 
performance and the individual’s current level of compensation, individual performance, potential for promotion and marketability outside the 
Company. The number of restricted share units or stock options previously granted to an individual may be, but is not always, a consideration in 
determining the amount of awards granted to that individual in the future. Generally, restricted share units vest over three to 10 years.

As stated above, the Company does not have a policy or practice of timing the grant of equity-based awards and the release of material, 
nonpublic information in a manner that would affect compensation for new or current executive ofﬁcers, nor has it deliberately or knowingly 
done so. In the event that material, nonpublic information becomes known to the Compensation Committee, the Company or its employees 
at  a  time  when  such  information  could  affect  or  otherwise  impact  the  imminent  grant  of  equity-based  compensation,  management  and  the 
Compensation Committee will take the existence of such information under advisement and determine whether to delay the grant of such equity-
based compensation to a later date to avoid the appearance of any impropriety.

Deductibility of Compensation and Other Regulatory Considerations

The Code places a limit of $1 million on the amount of compensation the Company may deduct for federal income tax purposes in any one 
year with respect to the Company’s Chief Executive Ofﬁcer and the next three most highly compensated executive ofﬁcers whose compensation 
is required to be disclosed in the Company’s annual Proxy Statement, other than the Chief Financial Ofﬁcer (the “Covered Employees”). There 
is an exception to this $1 million limitation for performance-based compensation that meets certain requirements. In reviewing the effectiveness 
of the Company’s compensation program, the Compensation Committee considers the anticipated tax treatment to the Company and to its 
executives of various payments and beneﬁts. Additionally, the deductibility of certain compensation payments depends upon the timing of an 
executive’s vesting or exercise of previously granted awards, as well as interpretations and changes in the tax laws and other factors beyond the 
Compensation Committee’s control. For these and other reasons, including the need to maintain ﬂexibility in compensating executive ofﬁcers in a 
manner designed to promote varying corporate goals, the Compensation Committee will not necessarily, nor in all circumstances, limit executive 
compensation to that which is deductible under the Code. The Company has not adopted a policy requiring all compensation to be deductible. 

26

 
 
 
 
 
 
 
The MIP contains speciﬁc language and requirements regarding performance-based awards granted to a Covered Employee intended to be 
“qualiﬁed performance-based compensation” as deﬁned by the Code. These awards shall be based on the attainment of one or more objective 
performance goals established in writing by the Committee. Performance goals must be based on one or more criteria approved by the MIP (e.g., 
revenue, operating income, return on assets) and be based on an objective formula or standard. Prior to any vesting of an award, the Committee 
must certify in writing that all of the necessary performance goals have been met. Material terms of the performance goals must be disclosed to and 
reapproved by the stockholders every ﬁve years. In October 2012, 120,500 grants of “qualiﬁed performance-based compensation” restricted share 
units were made to Covered Employees and vest, under the provisions of the MIP, upon the Company’s attainment of predetermined performance 
metrics established and approved by the Compensation Committee.

The  Compensation  Committee  will  continue  to  consider  various  alternatives  to  preserving  the  deductibility  of  compensation  payments 
and beneﬁts to the extent reasonably practicable and to the extent consistent with its other compensation objectives. Base salary, bonuses or the 
vesting of non-performance-based restricted share units do not qualify as performance-based compensation under the Code. In 2012, the following 
compensation paid was not deductible by the Company:

John N. Roberts, III 
Kirk Thompson 
Terrence D. Matthews 
Craig Harper 

$1,830,536
3,731,281
435,774
768,050

Derivative Trading

It is the Company’s policy that ofﬁcers and directors not engage in any put or call transactions on Company stock. Such transactions create 
a signiﬁcant enticement for abusive trading and, in many instances, give the unwelcome appearance of the ofﬁcer or director betting against the 
Company. There is no Company policy, other than required by law, that would prohibit the Company’s executive ofﬁcers from entering into a 
forward-sale or forward-purchase contract.

Stock Ownership Guidelines

To  motivate  the  Company’s  ofﬁcers  and  senior  management  to  emulate  its  stockholders,  the  Company  expects  its  management  to  own 

Company stock at levels described in the table shown below.

Stock ownership is deﬁned as stock owned:
(cid:85)(cid:202)(cid:202)(cid:96)(cid:136)(cid:192)(cid:105)(cid:86)(cid:204)(cid:143)(cid:222)(cid:202)(cid:156)(cid:192)(cid:202)(cid:136)(cid:152)(cid:96)(cid:136)(cid:192)(cid:105)(cid:86)(cid:204)(cid:143)(cid:222)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)(cid:201)(cid:156)(cid:192)
(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:192)(cid:156)(cid:213)(cid:125)(cid:133)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:123)(cid:228)(cid:163)(cid:173)(cid:142)(cid:174)(cid:202)(cid:13)(cid:147)(cid:171)(cid:143)(cid:156)(cid:222)ee Retirement Plan.

(cid:202)
(cid:202)

P
r
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y
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t
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Position 
Chief Executive Ofﬁcer 
Executive Vice Presidents 
Senior Vice Presidents 
Vice Presidents 

Ownership Multiple
of Base Salary
6 times
3.5 times
2.75 times
2.5 times

The Compensation Committee has determined that as of the annual award dates, October 24 and October 25, 2012, all of the Company’s 

ofﬁcers and members of senior management covered by these guidelines had met their ownership goals.

Stock Retention Policy

Other than indicated above, the Company does not have any other stock retention policy.

Recovery of Awards

The Company does not have a policy, other than required by law, requiring replacement of awards or payments as a result of an ofﬁcer’s illegal 
transactions or restatements. However, the Compensation Committee has formally adopted and explicitly communicated the “clawback” provisions 
of the Dodd-Frank Wall Street Reform and Consumer Protection Act with regard to annual cash bonus awards paid to the Company’s executive 
ofﬁcers. Since becoming a public company in 1983, the Company has had no illegal actions by its ofﬁcers or restatements of ﬁnancial information.

27

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
t
n
e
m
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Summary

The Company intends to continue its practice of compensating its executives through programs that emphasize performance. To that end, 
executive compensation is tied directly to the performance of the Company and is structured to ensure that, due to the nature of the business and 
the degree of competitiveness for executive talent, there is an appropriate balance between:
(cid:202)
(cid:202)
(cid:202)

(cid:85)(cid:202)(cid:202)(cid:76)(cid:62)(cid:195)(cid:105)(cid:202)(cid:195)(cid:62)(cid:143)(cid:62)(cid:192)(cid:222)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:136)(cid:152)(cid:86)(cid:105)(cid:152)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:195)(cid:133)(cid:156)(cid:192)(cid:204)(cid:135)(cid:204)(cid:105)(cid:192)(cid:147)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:143)(cid:156)(cid:152)(cid:125)(cid:135)(cid:204)(cid:105)(cid:192)(cid:147)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:152)(cid:156)(cid:152)(cid:86)(cid:62)(cid:195)(cid:133)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:176)

Each is determined and measured by:
(cid:85)(cid:202)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:204)(cid:136)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:96)(cid:62)(cid:204)(cid:62)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:119)(cid:152)(cid:62)(cid:152)(cid:86)(cid:136)(cid:62)(cid:143)(cid:93)(cid:202)(cid:156)(cid:171)(cid:105)(cid:192)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:62)(cid:143)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:195)(cid:204)(cid:192)(cid:62)(cid:204)(cid:105)(cid:125)(cid:136)(cid:86)(cid:202)(cid:125)(cid:156)(cid:62)(cid:143)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:143)(cid:156)(cid:152)(cid:125)(cid:135)(cid:204)(cid:105)(cid:192)(cid:147)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:195)(cid:133)(cid:156)(cid:192)(cid:204)(cid:135)(cid:204)(cid:105)(cid:192)(cid:147)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:62)(cid:192)(cid:105)(cid:96)(cid:202)(cid:220)(cid:136)(cid:204)(cid:133)(cid:202)(cid:136)(cid:204)(cid:195)(cid:202)(cid:171)(cid:105)(cid:105)(cid:192)(cid:202)(cid:125)(cid:192)(cid:156)(cid:213)(cid:171)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:136)(cid:152)(cid:96)(cid:136)(cid:219)(cid:136)(cid:96)(cid:213)(cid:62)(cid:143)(cid:202)(cid:86)(cid:156)(cid:152)(cid:204)(cid:192)(cid:136)(cid:76)(cid:213)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:204)(cid:156)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:195)(cid:213)(cid:86)(cid:86)(cid:105)(cid:195)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:176)

(cid:202)
(cid:202)
(cid:202)
(cid:202)

2012 COMPENSATION
Elements of Compensation

The  Company’s  primary  compensation  components  are  summarized  below.  Generally,  the  Company’s  compensation  program  consists  of 
an annual base salary, a short-term cash incentive award, and an annual long-term, equity-based award. Primary beneﬁts for executives include 
participation in the Company’s 401(k) plan, health, dental and vision plans, and various insurance plans, including disability and life insurance, all 
of which are available to all employees on a nondiscriminatory basis. The Company provides limited perquisites to executive ofﬁcers and other key 
employees as described in more detail on page 31 under the section titled “Other Perquisites.”

Total direct compensation for executive ofﬁcers, including the NEOs, consists of one or more of the following components:
(cid:85)(cid:202)(cid:202)(cid:76)(cid:62)(cid:195)(cid:105)(cid:202)(cid:195)(cid:62)(cid:143)(cid:62)(cid:192)(cid:222)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:135)(cid:76)(cid:62)(cid:195)(cid:105)(cid:96)(cid:202)(cid:136)(cid:152)(cid:86)(cid:105)(cid:152)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:202)(cid:76)(cid:156)(cid:152)(cid:213)(cid:195)(cid:202)(cid:62)(cid:220)(cid:62)(cid:192)(cid:96)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:143)(cid:156)(cid:152)(cid:125)(cid:135)(cid:204)(cid:105)(cid:192)(cid:147)(cid:202)(cid:136)(cid:152)(cid:86)(cid:105)(cid:152)(cid:204)(cid:136)(cid:219)(cid:105)(cid:201)(cid:105)(cid:181)(cid:213)(cid:136)(cid:204)(cid:222)(cid:135)(cid:76)(cid:62)(cid:195)(cid:105)(cid:96)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:133)(cid:105)(cid:62)(cid:143)(cid:204)(cid:133)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:220)(cid:105)(cid:143)(cid:118)(cid:62)(cid:192)(cid:105)(cid:202)(cid:76)(cid:105)(cid:152)(cid:105)(cid:119)(cid:204)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:156)(cid:204)(cid:133)(cid:105)(cid:192)(cid:202)(cid:76)(cid:105)(cid:152)(cid:105)(cid:119)(cid:204)(cid:195)(cid:176)

(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)

The Compensation Committee, with recommendations from management, works to create what it believes is the best mix of these components 
in delivering total direct compensation. In determining annual compensation, the Compensation Committee reviews all elements of compensation 
separately and in the aggregate. These compensation components are comparable to those of the Company’s competitors and peer group.

In its review of executive compensation, and, in particular, in determining the amount and form of incentive awards discussed below, the 

Compensation Committee generally considers several factors. Among these factors are:
(cid:202)
(cid:202)
(cid:202)
(cid:202)
(cid:202)

(cid:85)(cid:202)(cid:202)(cid:147)(cid:62)(cid:192)(cid:142)(cid:105)(cid:204)(cid:202)(cid:136)(cid:152)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:220)(cid:136)(cid:204)(cid:133)(cid:202)(cid:192)(cid:105)(cid:195)(cid:171)(cid:105)(cid:86)(cid:204)(cid:202)(cid:204)(cid:156)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:143)(cid:156)(cid:152)(cid:125)(cid:135)(cid:204)(cid:105)(cid:192)(cid:147)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:136)(cid:204)(cid:195)(cid:202)(cid:171)(cid:105)(cid:105)(cid:192)(cid:202)(cid:125)(cid:192)(cid:156)(cid:213)(cid:171)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:147)(cid:156)(cid:213)(cid:152)(cid:204)(cid:195)(cid:202)(cid:171)(cid:62)(cid:136)(cid:96)(cid:202)(cid:204)(cid:156)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:105)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:156)(cid:118)(cid:119)(cid:86)(cid:105)(cid:192)(cid:202)(cid:136)(cid:152)(cid:202)(cid:171)(cid:192)(cid:136)(cid:156)(cid:192)(cid:202)(cid:222)(cid:105)(cid:62)(cid:192)(cid:195)(cid:202)(cid:62)(cid:195)(cid:202)(cid:195)(cid:62)(cid:143)(cid:62)(cid:192)(cid:222)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:152)(cid:152)(cid:213)(cid:62)(cid:143)(cid:202)(cid:76)(cid:156)(cid:152)(cid:213)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:156)(cid:204)(cid:133)(cid:105)(cid:192)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:156)(cid:118)(cid:119)(cid:86)(cid:105)(cid:192)(cid:189)(cid:195)(cid:202)(cid:192)(cid:105)(cid:195)(cid:171)(cid:156)(cid:152)(cid:195)(cid:136)(cid:76)(cid:136)(cid:143)(cid:136)(cid:204)(cid:136)(cid:105)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:96)(cid:213)(cid:192)(cid:136)(cid:152)(cid:125)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:86)(cid:62)(cid:143)(cid:105)(cid:152)(cid:96)(cid:62)(cid:192)(cid:202)(cid:222)(cid:105)(cid:62)(cid:192)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:156)(cid:219)(cid:105)(cid:192)(cid:62)(cid:143)(cid:143)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:96)(cid:213)(cid:192)(cid:136)(cid:152)(cid:125)(cid:202)(cid:171)(cid:192)(cid:136)(cid:156)(cid:192)(cid:202)(cid:86)(cid:62)(cid:143)(cid:105)(cid:152)(cid:96)(cid:62)(cid:192)(cid:202)(cid:222)(cid:105)(cid:62)(cid:192)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:136)(cid:204)(cid:195)(cid:202)(cid:118)(cid:213)(cid:204)(cid:213)(cid:192)(cid:105)(cid:202)(cid:156)(cid:76)(cid:141)(cid:105)(cid:86)(cid:204)(cid:136)(cid:219)(cid:105)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:86)(cid:133)(cid:62)(cid:143)(cid:143)(cid:105)(cid:152)(cid:125)(cid:105)(cid:195)(cid:176)

At transportation companies, generally the largest elements of compensation are paid in the form of annual short-term incentives and long-
term compensation. Compensation mix and industry proﬁtability vary as the industry faces many risk factors, such as the economy and fuel prices.

Cash compensation for our NEOs varies as the EPS of the Company changes, due to the nature of our bonus plan described below. Grants of 
stock options or restricted share units are made annually. Stock options and restricted share units are based on each employee’s level of responsibility 
and are generally computed as a multiple of base salary.

It has been the policy of the Company to put a signiﬁcant portion of the executive’s compensation at risk. This is accomplished by our cash 
bonus plan, which is directly tied to EPS. Equity-based awards from the MIP may also vary in vesting from three to 10 years. These awards are 
subject to forfeiture if the employee leaves the Company. Furthermore, the future vesting of performance-based equity awards is contingent on the 
Company’s attainment of predetermined performance metrics established by the Committee. The Committee and management believe that the 
proportion of compensation at risk should rise as the employee’s level of responsibility increases.

28

 
 
 
 
 
 
 
 
 
 
The  Compensation  Committee  has  retained  Meridian  as  its  compensation  consultant.  Meridian  reports  directly  to  the  Compensation 
Committee and has no other engagements with the Company. In 2012, Meridian prepared a study providing information and an independent 
analysis of the Company’s executive compensation program and practices. The results of this study included observations about the Company’s 
target 2012 executive compensation.

In general:
(cid:85)(cid:202)(cid:202)(cid:76)(cid:62)(cid:195)(cid:105)(cid:202)(cid:195)(cid:62)(cid:143)(cid:62)(cid:192)(cid:136)(cid:105)(cid:195)(cid:202)(cid:192)(cid:62)(cid:152)(cid:125)(cid:105)(cid:202)(cid:118)(cid:192)(cid:156)(cid:147)(cid:202)(cid:120)(cid:211)(cid:175)(cid:202)(cid:204)(cid:156)(cid:202)(cid:163)(cid:228)(cid:206)(cid:175)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:199)(cid:120)(cid:204)(cid:133)(cid:202)(cid:171)(cid:105)(cid:192)(cid:86)(cid:105)(cid:152)(cid:204)(cid:136)(cid:143)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:192)(cid:105)(cid:195)(cid:171)(cid:105)(cid:86)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:171)(cid:105)(cid:105)(cid:192)(cid:202)(cid:125)(cid:192)(cid:156)(cid:213)(cid:171)
(cid:85)(cid:202)(cid:202)(cid:204)(cid:62)(cid:192)(cid:125)(cid:105)(cid:204)(cid:202)(cid:86)(cid:62)(cid:195)(cid:133)(cid:202)(cid:76)(cid:156)(cid:152)(cid:213)(cid:195)(cid:105)(cid:195)(cid:202)(cid:192)(cid:62)(cid:152)(cid:125)(cid:105)(cid:202)(cid:118)(cid:192)(cid:156)(cid:147)(cid:202)(cid:163)(cid:199)(cid:175)(cid:202)(cid:204)(cid:156)(cid:202)(cid:120)(cid:200)(cid:175)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:199)(cid:120)(cid:204)(cid:133)(cid:202)(cid:171)(cid:105)(cid:192)(cid:86)(cid:105)(cid:152)(cid:204)(cid:136)(cid:143)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:192)(cid:105)(cid:195)(cid:171)(cid:105)(cid:86)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:171)(cid:105)(cid:105)(cid:192)(cid:202)(cid:125)(cid:192)(cid:156)(cid:213)(cid:171)
(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:143)(cid:213)(cid:147)(cid:171)(cid:135)(cid:195)(cid:213)(cid:147)(cid:202)(cid:219)(cid:62)(cid:143)(cid:213)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:143)(cid:156)(cid:152)(cid:125)(cid:135)(cid:204)(cid:105)(cid:192)(cid:147)(cid:202)(cid:136)(cid:152)(cid:86)(cid:105)(cid:152)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:62)(cid:220)(cid:62)(cid:192)(cid:96)(cid:195)(cid:202)(cid:192)(cid:62)(cid:152)(cid:125)(cid:105)(cid:195)(cid:202)(cid:118)(cid:192)(cid:156)(cid:147)(cid:202)(cid:163)(cid:211)(cid:123)(cid:175)(cid:202)(cid:204)(cid:156)(cid:202)(cid:206)(cid:123)(cid:120)(cid:175)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:199)(cid:120)(cid:204)(cid:133)(cid:202)(cid:171)(cid:105)(cid:192)(cid:86)(cid:105)(cid:152)(cid:204)(cid:136)(cid:143)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:192)(cid:105)(cid:195)(cid:171)(cid:105)(cid:86)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:171)(cid:105)(cid:105)(cid:192)(cid:202)(cid:125)(cid:192)(cid:156)(cid:213)(cid:171)
(cid:85)(cid:202)(cid:202)(cid:204)(cid:156)(cid:204)(cid:62)(cid:143)(cid:202)(cid:96)(cid:136)(cid:192)(cid:105)(cid:86)(cid:204)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:118)(cid:156)(cid:192)(cid:202)(cid:105)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:156)(cid:118)(cid:119)(cid:86)(cid:105)(cid:192)(cid:195)(cid:202)(cid:192)(cid:62)(cid:152)(cid:125)(cid:105)(cid:195)(cid:202)(cid:118)(cid:192)(cid:156)(cid:147)(cid:202)(cid:199)(cid:200)(cid:175)(cid:202)(cid:204)(cid:156)(cid:202)(cid:163)(cid:120)(cid:123)(cid:175)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:199)(cid:120)(cid:204)(cid:133)(cid:202)(cid:171)(cid:105)(cid:192)(cid:86)(cid:105)(cid:152)(cid:204)(cid:136)(cid:143)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:192)(cid:105)(cid:195)(cid:171)(cid:105)(cid:86)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:171)(cid:105)(cid:105)(cid:192)(cid:202)(cid:125)(cid:192)(cid:156)(cid:213)(cid:171)

(cid:202)
(cid:202)
(cid:202)
(cid:202)

The Compensation Committee does not rely solely on predetermined formulas or a limited set of criteria when it evaluates the individual 
performances of the NEOs. The Compensation Committee considers actual results against deliverables and also bases its compensation decisions 
for the NEOs on:
(cid:85)(cid:202)(cid:202)(cid:143)(cid:105)(cid:62)(cid:96)(cid:105)(cid:192)(cid:195)(cid:133)(cid:136)(cid:171)(cid:93)
(cid:202)
(cid:85)(cid:202)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:105)(cid:221)(cid:105)(cid:86)(cid:213)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:156)(cid:118)(cid:202)(cid:76)(cid:213)(cid:195)(cid:136)(cid:152)(cid:105)(cid:195)(cid:195)(cid:202)(cid:171)(cid:143)(cid:62)(cid:152)(cid:195)(cid:93)
(cid:202)
(cid:85)(cid:202)(cid:202)(cid:195)(cid:204)(cid:192)(cid:62)(cid:204)(cid:105)(cid:125)(cid:136)(cid:86)(cid:202)(cid:192)(cid:105)(cid:195)(cid:213)(cid:143)(cid:204)(cid:195)(cid:93)
(cid:202)
(cid:85)(cid:202)(cid:202)(cid:156)(cid:171)(cid:105)(cid:192)(cid:62)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:192)(cid:105)(cid:195)(cid:213)(cid:143)(cid:204)(cid:195)(cid:93)
(cid:202)
(cid:85)(cid:202)(cid:202)(cid:125)(cid:192)(cid:156)(cid:220)(cid:204)(cid:133)(cid:202)(cid:136)(cid:152)(cid:202)(cid:13)(cid:42)(cid:45)(cid:93)
(cid:202)
(cid:85)(cid:202)(cid:202)(cid:195)(cid:136)(cid:226)(cid:105)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:143)(cid:105)(cid:221)(cid:136)(cid:204)(cid:222)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:76)(cid:213)(cid:195)(cid:136)(cid:152)(cid:105)(cid:195)(cid:195)(cid:93)
(cid:202)
(cid:85)(cid:202)(cid:202)(cid:105)(cid:221)(cid:171)(cid:105)(cid:192)(cid:136)(cid:105)(cid:152)(cid:86)(cid:105)(cid:93)
(cid:202)
(cid:85)(cid:202)(cid:202)(cid:195)(cid:204)(cid:192)(cid:105)(cid:152)(cid:125)(cid:204)(cid:133)(cid:105)(cid:152)(cid:136)(cid:152)(cid:125)(cid:202)(cid:156)(cid:118)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:204)(cid:136)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:171)(cid:156)(cid:195)(cid:136)(cid:204)(cid:136)(cid:156)(cid:152)(cid:93)
(cid:202)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:152)(cid:62)(cid:143)(cid:222)(cid:195)(cid:136)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:204)(cid:136)(cid:204)(cid:136)(cid:219)(cid:105)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:202)(cid:171)(cid:192)(cid:62)(cid:86)(cid:204)(cid:136)(cid:86)(cid:105)(cid:195)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)
(cid:202)
(cid:85)(cid:202)(cid:202)(cid:62)(cid:195)(cid:195)(cid:105)(cid:195)(cid:195)(cid:147)(cid:105)(cid:152)(cid:204)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:176)
(cid:202)

  Where possible, the above criteria were compared with the peer group selected as well as the Chief Executive Ofﬁcer’s input for his direct 
reports and the Chairman of the Board’s input for the Chief Executive Ofﬁcer.

Base Salary

The  Compensation  Committee  believes  that  competitive  levels  of  cash  compensation,  together  with  equity-based  and  other  incentive 
programs, are necessary for motivating and retaining the Company’s executives. Salaries provide executives with a base level of monthly income 
and help achieve the objectives outlined above by attracting and retaining strong talent. Base salaries are evaluated annually for all executive 
ofﬁcers, including the Chairman of the Board and the Chief Executive Ofﬁcer. Generally, base salaries are not directly related to speciﬁc measures 
of corporate performance, but are determined by the relevance of experience, the scope and complexity of the position, current job responsibilities, 
retention and relative salaries of the peer group members. The Compensation Committee may elect not to increase an executive ofﬁcer’s annual 
salary, and has so elected in prior years. However, if warranted, the Compensation Committee may increase base salary where an executive ofﬁcer 
takes on added responsibilities or is promoted.

Annual Bonus Award

As  previously  mentioned,  the  Company  has  had  in  place  for  several  years  a  bonus  plan  that  is  tied  to  EPS.  At  its  fall  meeting  when 
management presents its budget for the following year, the Compensation Committee establishes a matrix of EPS results with bonus payout levels. 
These  forecasted  earnings  results  are  based  on  customer  freight  trends,  strategies  for  growth  and  controlling  costs,  and  corporate  strategies  to 
maximize stockholder return. Once presented to the Board, the EPS budget and bonus plan matrix remain ﬁxed, though management continually 
reforecasts expectations based on actual results and on changing facts and assumptions. Changes in uncontrollable factors such as general economic 
conditions, railroad or port authority service issues, or rapidly ﬂuctuating fuel costs can have a signiﬁcant impact on the Company’s actual EPS. 
Therefore, as the Company performs against the original budget, the executive’s bonus performs against the pre-established matrix.

The bonus plan is based on annual EPS; however, quarterly EPS targets are established. If the Company meets a quarterly EPS target, the 
executive is eligible to receive a “progress payment” equal to approximately 12.5% of his or her projected annual bonus payout. The annual bonus 
earned is reduced by the progress payments received during the year. We consider a single quarterly progress payment, computed at approximately 
12.5% of the executive’s lowest possible annual bonus amount, to be the threshold bonus amounts described below. The Company’s bonus plan 
has no reimbursement or “clawback” feature if a progress payment is made in a plan year where an annual bonus is not earned. However, the 
Compensation Committee has formally adopted and explicitly communicated the “clawback” provisions of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act with regard to annual cash bonus awards paid to the Company’s executive ofﬁcers.

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For 2012, the established matrix consisted of EPS ranging from $2.15 to $3.25, translating to annual bonus payout percentages ranging from 
5% to 180% of an executive’s base salary. The 2012 quarterly and annual bonus payout targets compared with actual reported EPS and actual payout 
percentages were as follows:

Period 
1Q 12 
2Q 12 
3Q 12 
4Q 12 
Annual 

EPS 
 _____________________________________  
Reported EPS 
Target 
Minimum 
0.57 
0.52 
0.41 
0.67 
0.67 
0.56 
0.65 
0.67 
0.56 
0.70 
0.72 
0.62 
2.59 
2.58 
2.15 

Bonus Payout % of Salary
 ___________________________________
Actual
Target 
Minimum 
11.2
5.6 
0.6 
5.6
5.6 
0.6 
4.4
5.6 
0.6 
23.8
28.2 
3.2 
45.0
45.0 
5.0 

Actual earned bonus amounts by quarter for each NEO:

John N. Roberts, III 
David G. Mee 
Kirk Thompson 
Terrence D. Matthews 
Craig Harper 

Long-Term, Equity-Based Award

1Q 12 
$66,938 
41,063 
61,875 
41,906 
41,625 

2Q 12 
$33,469 
20,531 
30,938 
20,953 
20,812 

3Q 12 
$26,031 
15,969 
24,062 
16,297 
16,188 

4Q 12 
$141,312 
86,687 
130,625 
88,469 
87,875 

Total
Annual
$267,750
164,250
247,500
167,625
166,500

Each executive is eligible to receive a long-term incentive award of restricted share units. Restricted share units are intended to help achieve 
the objectives of the compensation program, including the retention of high-performing and experienced talent, a career orientation and strong 
alignment with stockholders’ interests. The restricted share units are awarded and settled from shares reserved for issuance under the MIP. The 
Compensation Committee approves or adjusts the award based on the above criteria for all Section 16 ﬁlers who are employees of the Company. The 
awards for the Company’s Chairman of the Board and Chief Executive Ofﬁcer are presented for ﬁnal approval to the Company’s independent Board 
members. The Compensation Committee believes that restricted share units must be sufﬁcient in size to provide a strong, long-term performance 
and retention incentive for executives and to increase their vested interest in the Company. Restricted share units are used as long-term incentives 
because they are less dilutive to shares outstanding and to proﬁts. Restricted share units generally vest from three to 10 years.

In administering the MIP and awarding long-term incentive awards, we are sensitive to the potential for dilution of future EPS. The MIP is 
a broad-based equity compensation program. We focus the program on employees who will have the greatest impact on strategic direction and 
long-term results of the Company by virtue of their senior roles and responsibilities. A total of 521,426 restricted share units were granted in 
2012. Approximately 23% of the total share units granted were to the NEOs, and approximately 33% of the total share units granted were to the 
executive ofﬁcer group as a whole. As described above, MIP participants who hold the title of director and above have an ownership requirement 
in Company stock.

For 2012, the Compensation Committee and/or independent directors approved the following restricted share unit grants to the NEOs:

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John N. Roberts, III 
Kirk Thompson 
David G. Mee 
Terrence D. Matthews 
Craig Harper 

45,000
38,000
12,500
12,500
12,500

The 2012 NEO awards shown above are performance-based restricted share units. These grants vest from four to ﬁve years annually, beginning 
July 15, 2013, upon the Company’s attainment of predetermined operating metrics established and approved by the Compensation Committee, and 
are deemed “qualiﬁed performance-based compensation” awards under Section 162(m) of the Code. The Compensation Committee acknowledged 
that the separate components of total direct compensation were not always in the 75th percentile of their respective peer groups, as determined 
earlier, but it felt that its mix of current and long-term compensation is more appropriate to align the NEOs’ compensation with the stockholders’ 
interests in both the near and longer term.

The Committee also reviewed its compensation strategy in general and speciﬁc components of total direct compensation and determined that 
none of the Company’s compensation programs, individually or as a whole, would create risks that are reasonably likely to have a material adverse 
effect on the Company. The Committee presented its review and conclusion to the entire Board.

Deferred Compensation

The Company administers a Deferred Compensation Plan for certain of its ofﬁcers. The employee participant may elect on an annual basis to 
defer part of his or her salary and/or bonus. This plan assists key employees in planning for retirement. The Company contributes nothing to the 
plan, and participants are not permitted to defer shares of Company stock.

30

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Health and Welfare Beneﬁts

The Company provides beneﬁts such as medical, vision, life insurance, long-term disability coverage, and 401(k) plan opportunities to all 
eligible employees, including the NEOs. The Company provides up to $750,000 in life insurance coverage and up to $10,000 per month in long-
term disability coverage. The value of these beneﬁts is not required to be included in the Summary Compensation Table since they are available to 
all employees on a nondiscriminatory basis. The Company matches certain employee contributions to the 401(k) plan. The Company provides no 
postretirement medical or supplemental retirement beneﬁts to its employees.

The Company also provides vacation, sick leave and other paid holidays to employees, including the NEOs, that are comparable to those 
provided at other transportation companies. The Company’s commitment to provide employee beneﬁts is due to our recognition that the health 
and well-being of our employees contributes directly to a productive and successful work life that produces better results for the Company and for 
its employees.

Personal Beneﬁts

The Company provides certain perquisites to management employees, including the NEOs, as summarized below.

Company Aircraft

The Company actively participates in shared ownership of aircraft services with NetJets and Citationair. With the approval of the Chief 
Executive Ofﬁcer, the NEOs and other management employees use Company aircraft services for business purposes. Personal use of Company 
aircraft services is provided to executive ofﬁcers on a very limited basis and to other management employees in the event of emergency or other 
urgent situations.

Company Vehicles

The Company does not provide Company-owned cars to executives.

Other Perquisites

The Company provides executive ofﬁcers a taxable allowance of up to $10,000 a year for ﬁnancial counseling services, which may include 
legal, ﬁnancial, estate and/or tax planning, and tax return preparation. This beneﬁt is based on actual cost to the Company. The Company also 
provides country club memberships to certain of its executive ofﬁcers. These memberships are valued based on the actual costs of the membership, 
including dues, regardless of whether use was personal or business. The Company believes that these clubs provide a quiet venue for negotiations 
and entertainment of clients, bankers, investment bankers, stockholders, etc.

Severance Agreements

The Company does not have employment contracts or predetermined personal severance agreements with any of its executives. However, 
according to the terms of the awards granted under the previously mentioned MIP, all outstanding non-incentive-based options and restricted share 
units would immediately vest upon a “change in control.”

Generally, a “change in control” would be deemed to occur when more than 30% of the outstanding shares of common stock of the Company 
change ownership in a transaction that is a merger, reorganization or consolidation, when the persons who constitute the Company’s incumbent 
board of directors cease to constitute a majority of the board, or when the stockholders approve a transaction that is a merger, reorganization or 
consolidation where more than 50% of the outstanding shares change ownership or a complete liquidation or dissolution of the Company or the 
sale or disposition of all or substantially all of the assets of the Company.

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SUMMARY COMPENSATION

The following table summarizes the total compensation earned by or paid to the Chief Executive Ofﬁcer, Chief Financial Ofﬁcer and the next 
three most highly compensated executive ofﬁcers of the Company who served in such capacities as of December 31, 2012, for services rendered to 
the Company. These ﬁve ofﬁcers are referred to as the NEOs in this Proxy Statement.

Year 
2012 
2011 

Salary 
($) (1) 
601,954 
549,019 

Option 
Awards 
($) (2)  

Share 
Units 
($) (2) 
2,505,420 
4,374,300 

Non-Equity
Incentive
Plan 
Compensation 
($) (1) 
267,750 
412,500 

Deferred 
Compensation 
($) 
0 
0 

All Other
Compensation
($) 
14,742 
12,917 

Name and 
Principal 
Position 
John N. Roberts, III 
      President  
      and CEO

David G. Mee 
      EVP, Finance  
      & Administration 
      and CFO  

2012 
2011 
2010 

369,615 
352,308 
297,030 

691,575 
624,900 
1,218,700 

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Kirk Thompson 
      Chairman of  
      the Board 

2012 
2011 
2010 

542,308 
591,923 
695,000 

2,115,688 
2,499,600 
2,089,200 

Terrence D. Matthews  2012 
      EVP, and  
      President 
      of Intermodal 

379,931 

691,575 

Craig Harper 
      EVP, Operations  
      and COO 

2012 
2011 
2010 

371,569 
370,000 
361,538 

691,575 
624,900 
661,580 

Total ($)
3,389,866
5,348,736

1,242,740
1,259,448
1,627,453

2,915,848
3,553,413
3,038,445

17,300 
19,740 
 11,133 

10,352 
15,640 
10,999 

32,028 

1,271,159

11,250 
7,823 
5,654 

1,240,894
1,280,223
1,154,772

164,250 
262,500 
 100,590 

247,500 
446,250 
243,246 

167,625 

166,500 
277,500 
126,000 

0 
0 
0  

0 
0 
0 

0 

0 
0 
0 

(1)   Non-equity incentive plan compensation (paid as a bonus) and salary amounts shown above are reported as gross earnings. Totals may include amounts 
transferred into the deferred compensation plan and/or into the Company’s 401(k) plan. All non-equity awards are reported in the year in which they 
are earned.

(2)   Amounts reﬂect grant date fair value of the award, which will be earned over the vesting period (4 to 7 years) of each individual’s speciﬁc grant. No stock 

options were granted during 2012, 2011 or 2010.

Components of All Other Compensation for Calendar Year 2012

Name 
John N. Roberts, III 
David G. Mee 
Kirk Thompson 
Terrence D. Matthews 
Craig Harper 

Perquisites 
and Other 
Personal Beneﬁts 
($) 
14,742 
7,500 
5,702 
23,579 
0 

Company
Contributions
to 401(k) Plan 
($) 

0 
9,800 
4,650 
8,449 
11,250 

Total
($)
14,742
17,300
10,352
32,028
11,250

Year 
2012 
2012 
2012 
2012 
2012 

32

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Components of Perquisites for Calendar Year 2012

Name 
John N. Roberts, III 
David G. Mee 
Kirk Thompson 
Terrence D. Matthews 
Craig Harper 

Personal Use 
of Company Plane 
($) (1) 
0 
0 
0 
0 
0 

Legal and 
Accounting  
Fees  
($) 
6,120 
0 
4,135 
210 
0 

Club 
Dues 
($) 
8,622 
7,500 
1,567 
23,369 
0 

Year 
2012 
2012 
2012 
2012 
2012 

Total
Perquisites
and Other
Personal
Beneﬁts ($)
14,742
7,500
5,702
23,579
0

(1)   The value of personal aircraft usage reported above is based on the Company’s actual invoiced amount from NetJets or Citationair for the variable costs 
incurred on each trip. Since the Company’s aircraft is used primarily for business travel, this methodology excludes ﬁxed costs that do not change based on 
usage, such as depreciation and management fees. On certain occasions, an executive’s spouse or other family member may accompany the executive on 
a ﬂight when such person is invited to attend the event for appropriate business purposes. No additional direct operating cost is incurred in such situations 
under the foregoing methodology; however, the value of personal use of Company aircraft is imputed for federal income tax purposes as income to the NEO. 
Messrs. Roberts, Matthews and Harper had such imputed income in 2012. This value is calculated pursuant to Internal Revenue Service guidelines using 
Standard Industry Fare Level rates, which are determined by the U.S. Department of Transportation.

Grants of Plan-Based Awards

The following table reﬂects estimated possible payouts under equity and non-equity incentive plans to the NEOs during 2012. The Company’s 
equity-based and non-equity incentive-based awards are granted to the NEOs based upon pre-established performance goals set annually by the 
Compensation Committee with a performance period equal to the calendar year for which the performance goals are set.

The MIP is an annual plan consisting of equity-based awards only. The number of shares awarded is measured based on the executive’s level 
of responsibility and other matters described on page 30 under “Long-Term, Equity-Based Award.” Dividends are not paid on awards of restricted 
share units.

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NEOs are eligible to earn cash bonuses under the non-equity incentive award plan based on the Company’s EPS for the calendar year. Please 

refer to page 29 under “Annual Bonus Award” for further detail.

Estimated Possible Payouts 
Under Non-Equity 
Incentive Awards 

Estimated Possible Payouts 
Under Equity Incentive 
Plan Awards 

Grant  Threshold  Target  Maximum  Threshold  Target  Maximum 
($) (1) 
Date 

(#) (2) 

(#) 

(#) 

($) 

($) 

3,719 

267,750 

1,071,000 

9,000 

45,000 

45,000 

Name 
John. N.
  Roberts, III  10/25/2012 

David G.
  Mee 

Kirk
  Thompson 

Terrence D.
  Matthews 

Craig
  Harper 

10/24/2012 

2,281 

164,250 

   657,000 

3,125 

12,500 

12,500 

10/25/2012 

3,438 

247,500 

   990,000 

7,600 

38,000 

38,000 

10/24/2012 

2,328 

167,625 

   670,500 

3,125 

12,500 

12,500 

10/24/2012 

2,313 

166,500 

   666,000 

3,125 

  12,500 

12,500 

Stock 
Option 
Awards: 
Awards: 
Number 
Number 
Exercise 
of 
of 
or Base 
Price of 
Securities 
Shares 
of Stock  Underlying  Option 
Options 
or Units 
(#) 
(#) 

Grant
Date Fair
Value
of Stock
and
Option
Awards  Awards
($) (3)
($/Sh) 

55.68

55.33

55.68

55.33

55.33

(1)   This column reﬂects the maximum non-equity incentive award each NEO was eligible to receive for 2012 under the percentage assigned to each NEO 
for the cash bonus pool. The actual awards earned are reported in the Summary Compensation Table shown on page 32 of this Proxy Statement.

(2)   This column reﬂects the number of performance-based restricted share units that were granted to the NEOs in 2012.
(3)   The fair value of the awards was based on a 2.8% discount from the Company’s closing stock price of $56.92 on October 24, 2012, or $57.28 on 
October 25, 2012. The discount represents the present value of expected dividends to be paid on the Company’s common stock, using the current 
dividend rate and the risk-free interest rate, over the vesting period. The Company believes that this discount is appropriate to value the restricted share 
units, as the units do not collect or accrue dividends until the awards vest and are settled with Company stock.

33

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding Equity Awards at Calendar Year-end

The following table sets forth information concerning stock options and restricted share units held by the NEOs as of December 31, 2012.

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Name 
John N. 
  Roberts, III 

David G.
  Mee 

Kirk 
  Thompson 

Terrence D.
  Matthews 

Craig
  Harper 

Option Awards 

Equity 
Incentive 
Plan 
Awards: 
Number of 
Securities 

Number of 
Securities 
Underlying 
Unexercised  Unexercised  Underlying  Option 

Number of 
Securities 
Underlying 

Options 

Options 
Exercisable  Unexercisable  Unearned 
Options (#) 
(#) (1) 

(#) 

Unexercised  Exercise  Option 

Price 
($) 

Expiration 
Date 

12.20 
20.36 

10/23/14 
10/21/15 

9,600 
32,000 

6,400 
21,333 

12.20 
20.36 

10/23/14 
10/21/15 

20,000 
80,000 

12.20 
20.36 

10/23/14 
10/21/15 

8,000 
40,000 

12.20 
20.36 

10/23/14 
10/21/15 

9,600 
32,000 

12.20 
20.36 

10/23/14 
10/21/15 

34

RSU Awards

Equity 
Incentive 
Plan 
Awards: 

Equity
Incentive
Plan Awards:
Market
Value of
Unearned
Shares, Units
or Other

or 

Number  Market  Number of 
of Shares  Value of  Unearned 
Shares or 
Units of  Units of 
Stock That  Stock That 
Have Not  Have Not  Rights That  Rights That
Have Not

Shares, 
Units or 
Other 

Vested 
($) (3)  Vested (#) (2)  Vested ($) (3)

Vested 
(#) (2) 

Have Not 

13,600 
6,000 
17,000 
4,000 
10,000 
45,000 

812,056 
358,260 
1,015,070 
238,840 
597,100 
2,686,950 

8,800 
6,000 
17,000 
3,400 
30,000 
21,000 

525,448 
358,260 
1,015,070 
203,014 
1,791,300 
1,253,910 

35,000 
30,000 
53,000 
20,800 
33,280 
36,000 

2,089,850 
1,791,300 
3,164,630 
1,241,968 
1,987,149 
2,149,560 

11,200 
6,000 
17,000 
4,000 
6,400 
10,800 

668,752 
358,260 
1,015,070
238,840
382,144
644,868

13,600 
9,000 
17,000 
4,800 
7,680 
11,400 

812,056 
537,390 
1,015,070 
286,608 
458,573 
680,694 

90,000 
45,000 

5,373,900
2,686,950

12,000 
12,500 

  716,520
  746,375

48,000 
38,000 

2,866,080
2,268,980

27,000 
12,500 

1,612,170
  746,375

12,000 
12,500 

  716,520
  746,375

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)   Unvested and unexercisable options. Effective vesting dates are noted below.

Shares Vesting  Vesting Date 

Shares Vesting  Vesting Date

John N. Roberts, III 

David G. Mee 

Kirk Thompson 

Terrence D. Matthews 

Craig Harper 

9,600 
16,000 
6,400 
10,666 
20,000 
40,000 
8,000 
20,000 
9,600 
16,000 

6/1/13 
6/1/13 
6/1/13 
6/1/13 
6/1/13 
6/1/13
6/1/13 
6/1/13  
6/1/13 
6/1/13 

16,000 

10,667 

40,000 

20,000 

16,000 

6/1/14

6/1/14

6/1/14

6/1/14

6/1/14

(2)   Restricted share units are time-vested or performance-based awards. Effective vesting dates, pending achievement of required performance goals set for 

performance-based awards, are noted below.

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Time-Based Awards

John N. Roberts, III 

David G. Mee  

Kirk Thompson 

Terrence D. Matthews 

Craig Harper 

Shares Vesting  Vesting Date 

Shares Vesting  Vesting Date

4,000 
5,000 
5,000 
15,000 
15,000 
15,000 

3,400 
10,000 
10,000 
10,000 
7,000 
7,000 
7,000 
23,000 
20,800 
16,640 
16,640 
12,000 
12,000 
12,000 

4,000 
3,200 
3,200 
3,600 
3,600 
3,600 

8,000 
4,800 
3,840 
3,840 
3,800 
3,800 
3,800 

7/15/13
7/15/13
7/15/14
7/15/13
7/15/14
7/15/15

7/15/13
7/15/14
7/15/15
7/15/16
7/15/13
7/15/14
7/15/15
7/15/15
7/15/13
7/15/13
7/15/14
7/15/13
7/15/14
7/15/15

7/15/13
7/15/13 
7/15/14
7/15/13
7/15/14
7/15/15

7/15/15
7/15/13
7/15/13
7/15/14
7/15/13
7/15/14
7/15/15

4,250 
4,250 
5,100 
3,000 
2,010 
990 
17,000 
2,750 
2,750 
3,300 
3,000 
2,010 
990 
17,000 
8,750 
8,750 
17,500 
5,000 
5,000 
10,000 
10,000 
30,000 
3,500 
3,500 
4,200 
3,000 
2,010 
990 
17,000 
4,250 
4,250 
5,100 
4,000 
3,000 
2,000 
9,000 

7/15/13 
7/15/14 
7/15/15 
7/15/13 
7/15/14 
7/15/15 
7/15/14 
7/15/13 
7/15/14 
7/15/15 
7/15/13 
7/15/14 
7/15/15 
7/15/15 
7/15/13 
7/15/14 
7/15/15 
7/15/13 
7/15/14 
7/15/15 
7/15/16 
7/15/14 
7/15/13 
7/15/14 
7/15/15 
7/15/13 
7/15/14 
7/15/15 
7/15/15
7/15/13 
7/15/14 
7/15/15 
7/15/13 
7/15/14 
7/15/15 
7/15/14 

35

 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance-Based Awards

John N. Roberts, III 

David G. Mee  

Kirk Thompson 

Terrence D. Matthews 

Craig Harper 

Shares Vesting  Vesting Date 

Shares Vesting  Vesting Date

15,000 
15,000 
15,000 
15,000 
15,000 
15,000 
3,000 
3,000 
3,000 
3,000 
12,000 
12,000 
12,000 
12,000 
7,600 
3,000 
3,000 
3,000 
3,000 
3,000 
3,000 
3,000 
3,000 
3,000 
3,000 
3,000 

7/15/13 
7/15/14 
7/15/15 
7/15/16 
7/15/17 
7/15/18
7/15/13 
7/15/14 
7/15/15 
7/15/16 
7/15/13 
7/15/14 
7/15/15 
7/15/16 
7/15/13
7/15/13 
7/15/14 
7/15/15 
7/15/16 
7/15/17 
7/15/18 
7/15/19
7/15/13 
7/15/14 
7/15/15 
7/15/16 

9,000 
9,000 
9,000 
9,000 
9,000 

3,125 
3,125 
3,125 
3,125 
7,600 
7,600 
7,600 
7,600 

3,000 
3,000 
3,125 
3,125 
3,125 
3,125 

3,125 
3,125 
3,125 
3,125 

7/15/13
7/15/14
7/15/15
7/15/16
7/15/17

7/15/13
7/15/14
7/15/15
7/15/16
7/15/14
7/15/15
7/15/16
7/15/17

7/15/20
7/15/21
7/15/13
7/15/14
7/15/15
7/15/16

7/15/13
7/15/14
7/15/15
7/15/16

(3)   Values are based on the last closing market price of $59.71 on December 31, 2012.

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36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options Exercised and Restricted Share Units Vested

 __________________________________    ___________________________________

Restricted Share Units

Option Awards 

Name 
John N. Roberts, III 

Total 
David G. Mee 

Total 
Kirk Thompson 

Total 
Terrence D. Matthews 

Total 
Craig Harper 

Number of Shares 
Acquired on 
Exercise 
(#) 
8,896 
9,600 
16,000 

Value 
Realized on 
Exercise 
($) (1) (2) 
427,364 
412,032 
556,160 

34,496 
6,672 
6,400 
10,667 

23,739 
17,792 
20,000  
20,000 

57,792 
12,000 
8,896 
28,000 

48,896 
8,896 
9,600 
16,000 

1,395,556 
320,386 
274,557 
370,566 

965,509 
845,132 
845,878  
682,678 

2,373,688 
598,190 
431,073 
1,153,193 

2,182,456 
427,186 
411,245 
554,848 

Total 

34,496 

1,393,279 

Number of Shares 
Acquired on 
Vesting 
(#) 
3,400 
3,990 
4,000 
5,000 
15,000 
15,000 
46,390 
2,200 
3,990 
3,400 
7,000 
3,000 
19,590 
5,000 
10,000 
20,800 
16,640 
12,000 
12,000 
76,440 
2,800 
3,990 
4,000 
3,200 
3,600 
3,000 
20,590 
3,400 
5,000 
4,800 
3,840 
3,800 
3,000 
23,840 

Value
Realized on
Vesting
($) (1) (2)
200,906
235,769
236,360
295,450
886,350
886,350 
2,741,185
129,998
235,769
200,906
413,630
177,270
1,157,573
295,450
590,900
1,229,072
983,258
709,080
709,080
4,516,840
165,452
235,769
236,360
189,088
212,724
177,270
1,216,663
200,906
295,450
283,632
226,906
224,542
177,270
1,408,706

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(1)   Value realized on the acquired shares shown above is gross earnings. Values are earned over multiple years. Election to exercise an option or the receipt 
of vested shares in calendar year 2012 should not be interpreted to mean that all value was earned in the year the option was exercised or shares received. 
Each executive exercised and purchased or retained a portion of the available vested shares as shown below:

John N. Roberts, III 
David G. Mee 
Kirk Thompson 
Terrence D. Matthews 
Craig Harper 

46,960
11,473
60,164
13,705
13,484

(2)   Values are calculated by subtracting the exercise price from the fair market value of the underlying common stock on the date of exercise or vesting.

37

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Components of Nonqualiﬁed Deferred Compensation for Calendar Year 2012
  We have a nonqualiﬁed deferred compensation plan that allows eligible employees to defer a portion of their compensation. Participants can 
elect to defer up to a maximum of 50% of their base salary as well as up to 85% of their bonus for the year. The compensation deferred under this 
plan is credited with earnings or losses of investments elected by plan participants. Each participant is fully vested in all deferred compensation 
and earnings; however, these amounts are subject to general creditor claims until actually distributed to the employee. A participant may elect to 
receive deferred amounts in one payment or in quarterly installments payable over a period of two to 25 years upon reaching the age of 55, having 
15 years of service, or becoming disabled. Our total liability under this plan was $11,163,233 as of December 31, 2012, and $10,751,270 as of 
December 31, 2011. These amounts are included in other long-term liabilities in our Consolidated Balance Sheets. Participant withholdings are 
held by a trustee and invested as directed by participants. These investments are included in “other assets” in our Consolidated Balance Sheets and 
totaled $11,163,233 as of December 31, 2012, and $10,751,270 as of December 31, 2011.

Name 
John N. Roberts, III 
David G. Mee 
Kirk Thompson 
Terrence D. Matthews 
Craig Harper 

Executive 
Contributions 
in 2012 
($) (1) 
0 
0 
0 
196,041 
67,933 

Registrant 
Contributions 
in 2012 
($) 
0 
0 
0 
0 
0 

Aggregate 
Earnings 
in 2012 
($) 

0 
0 
81,586 
216,130 
39,436 

Aggregate 
Withdrawals and 
Distributions 
($) 

0 
0 
0 
0 
18,856 

Aggregate
Balance
at 2012
($)

0
0
837,205
2,350,940
532,747

(1)   Amounts of executive contributions are included as part of the NEO’s salary in the Summary Compensation Table detailed above.

Potential Post-Employment Beneﬁts

The Company does not have employment contracts or predetermined personal severance agreements with any of its executives. However, 
according to the terms of the awards granted under the previously mentioned MIP, all outstanding non-incentive-based options and restricted share 
units would immediately vest upon a “change in control.”

Generally, a “change in control” would be deemed to occur when more than 30% of the outstanding shares of common stock of the Company 
change ownership in a transaction that is a merger, reorganization or consolidation, when the persons who constitute the Company’s incumbent 
board of directors cease to constitute a majority of the board, or when the stockholders approve a transaction that is a merger, reorganization or 
consolidation where more than 50% of the outstanding shares change ownership or a complete liquidation or dissolution of the Company or the 
sale or disposition of all or substantially all of the assets of the Company.

Potential beneﬁts of the NEOs due to a “change in control” are shown below. The amounts represent the immediate vesting of all outstanding 

non-incentive-based options and restricted share units and are valued using the last closing market price of $59.71 on December 31, 2012.

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John N. Roberts, III 
David G. Mee 
Kirk Thompson 
Terrence D. Matthews 
Craig Harper 

$  7,423,572
6,290,520
16,522,657
5,262,014
5,505,687

38

 
 
 
 
 
 
 
 
 
 
 
 
REPORT OF THE AUDIT COMMITTEE
The Audit Committee

The  Audit  Committee  is  composed  of  James  L.  Robo,  Chairman,  Douglas  G.  Duncan,  Sharilyn  S.  Gasaway,  and  John  A.  White.  Each 
served as a member of the Audit Committee during calendar year 2012. The Company’s Board has determined that all members of the Audit 
Committee satisfy the independence and other requirements for audit committee membership pursuant to the NASDAQ corporate governance 
listing standards and has also determined that Messrs. Robo, Duncan, and White and Mrs. Gasaway each has the attributes of an audit committee 
ﬁnancial expert as deﬁned by SEC requirements.

The Audit Committee operates under a written charter adopted by the Board. A copy of the Audit Committee Charter is available on the 
“Corporate Governance” page of the “Investors” section of the Company’s website at www.jbhunt.com. In carrying out its responsibilities, the 
Audit Committee, among other things:
(cid:202)

(cid:85)(cid:202)(cid:202)(cid:147)(cid:156)(cid:152)(cid:136)(cid:204)(cid:156)(cid:192)(cid:195)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:136)(cid:152)(cid:204)(cid:105)(cid:125)(cid:192)(cid:136)(cid:204)(cid:222)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:119)(cid:152)(cid:62)(cid:152)(cid:86)(cid:136)(cid:62)(cid:143)(cid:202)(cid:192)(cid:105)(cid:171)(cid:156)(cid:192)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:171)(cid:192)(cid:156)(cid:86)(cid:105)(cid:195)(cid:195)(cid:93)(cid:202)(cid:195)(cid:222)(cid:195)(cid:204)(cid:105)(cid:147)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:136)(cid:152)(cid:204)(cid:105)(cid:192)(cid:152)(cid:62)(cid:143)(cid:202)(cid:62)(cid:86)(cid:86)(cid:156)(cid:213)(cid:152)(cid:204)(cid:136)(cid:152)(cid:125)(cid:202)(cid:86)(cid:156)(cid:152)(cid:204)(cid:192)(cid:156)(cid:143)(cid:195)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:119)(cid:152)(cid:62)(cid:152)(cid:86)(cid:136)(cid:62)(cid:143)(cid:202)(cid:195)(cid:204)(cid:62)(cid:204)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:192)(cid:105)(cid:171)(cid:156)(cid:192)(cid:204)(cid:195)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)

Company,

(cid:202)

(cid:202)
(cid:202)
(cid:202)

(cid:85)(cid:202)(cid:202)(cid:62)(cid:171)(cid:171)(cid:156)(cid:136)(cid:152)(cid:204)(cid:195)(cid:93)(cid:202)(cid:192)(cid:105)(cid:204)(cid:62)(cid:136)(cid:152)(cid:195)(cid:93)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:105)(cid:152)(cid:195)(cid:62)(cid:204)(cid:105)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:156)(cid:219)(cid:105)(cid:192)(cid:195)(cid:105)(cid:105)(cid:195)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:136)(cid:152)(cid:96)(cid:105)(cid:171)(cid:105)(cid:152)(cid:96)(cid:105)(cid:152)(cid:204)(cid:202)(cid:62)(cid:213)(cid:96)(cid:136)(cid:204)(cid:156)(cid:192)(cid:195)(cid:93)(cid:202)(cid:136)(cid:152)(cid:86)(cid:143)(cid:213)(cid:96)(cid:136)(cid:152)(cid:125)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:136)(cid:152)(cid:125)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:181)(cid:213)(cid:62)(cid:143)(cid:136)(cid:119)(cid:86)(cid:62)(cid:204)(cid:136)(cid:156)(cid:152)(cid:195)(cid:93)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)

independence of the independent auditors,

(cid:85)(cid:202)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:171)(cid:192)(cid:105)(cid:62)(cid:171)(cid:171)(cid:192)(cid:156)(cid:219)(cid:105)(cid:195)(cid:202)(cid:62)(cid:143)(cid:143)(cid:202)(cid:62)(cid:213)(cid:96)(cid:136)(cid:204)(cid:93)(cid:202)(cid:62)(cid:204)(cid:204)(cid:105)(cid:195)(cid:204)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:192)(cid:105)(cid:219)(cid:136)(cid:105)(cid:220)(cid:202)(cid:195)(cid:105)(cid:192)(cid:219)(cid:136)(cid:86)(cid:105)(cid:195)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:171)(cid:105)(cid:192)(cid:147)(cid:136)(cid:204)(cid:204)(cid:105)(cid:96)(cid:202)(cid:152)(cid:156)(cid:152)(cid:62)(cid:213)(cid:96)(cid:136)(cid:204)(cid:202)(cid:195)(cid:105)(cid:192)(cid:219)(cid:136)(cid:86)(cid:105)(cid:195)(cid:93)
(cid:85)(cid:202)(cid:202)(cid:156)(cid:219)(cid:105)(cid:192)(cid:195)(cid:105)(cid:105)(cid:195)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:171)(cid:105)(cid:192)(cid:118)(cid:156)(cid:192)(cid:147)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:156)(cid:118)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:136)(cid:152)(cid:204)(cid:105)(cid:192)(cid:152)(cid:62)(cid:143)(cid:202)(cid:62)(cid:213)(cid:96)(cid:136)(cid:204)(cid:202)(cid:118)(cid:213)(cid:152)(cid:86)(cid:204)(cid:136)(cid:156)(cid:152)(cid:93)(cid:202)(cid:62)(cid:152)(cid:96)
(cid:85)(cid:202)(cid:202)(cid:156)(cid:219)(cid:105)(cid:192)(cid:195)(cid:105)(cid:105)(cid:195)(cid:202)(cid:204)(cid:133)(cid:105)(cid:202)(cid:10)(cid:156)(cid:147)(cid:171)(cid:62)(cid:152)(cid:222)(cid:189)(cid:195)(cid:202)(cid:86)(cid:156)(cid:147)(cid:171)(cid:143)(cid:136)(cid:62)(cid:152)(cid:86)(cid:105)(cid:202)(cid:220)(cid:136)(cid:204)(cid:133)(cid:202)(cid:143)(cid:105)(cid:125)(cid:62)(cid:143)(cid:202)(cid:62)(cid:152)(cid:96)(cid:202)(cid:192)(cid:105)(cid:125)(cid:213)(cid:143)(cid:62)(cid:204)(cid:156)(cid:192)(cid:222)(cid:202)(cid:192)(cid:105)(cid:181)(cid:213)(cid:136)(cid:192)(cid:105)(cid:147)(cid:105)(cid:152)(cid:204)(cid:195)(cid:176)

In 2012, the Audit Committee met eight times. The Audit Committee schedules its meetings with a view to ensure that it devotes appropriate 
attention to all of its responsibilities and duties. The Audit Committee’s meetings include, whenever appropriate, executive sessions with the 
Company’s independent auditors and the Company’s internal auditors, in each case outside the presence of the Company’s management.

In performing its oversight role, the Audit Committee reviewed the audited consolidated ﬁnancial statements for the 2012 calendar year and 
met and held discussions with management, the Company’s internal auditors and E&Y, the Company’s independent registered public accounting 
ﬁrm, to discuss those ﬁnancial statements and the audit related thereto. Management has represented to the Audit Committee that the Company’s 
consolidated ﬁnancial statements were prepared in accordance with generally accepted accounting principles.

The Audit Committee discussed with the independent auditors matters required to be discussed by the Statement on Auditing Standards 
No. 61, as may be modiﬁed, supplemented or amended, which includes, among other items, matters related to the conduct of the audit of the 
Company’s consolidated ﬁnancial statements. The independent auditors also provided the Audit Committee with written disclosures and the 
letter required by Rule 3526 of the Public Company Accounting Oversight Board, as may be modiﬁed, supplemented or amended, which relates 
to the auditors’ independence from the Company and its related entities, and the Audit Committee discussed with the independent auditors their 
independence.

Based  on  the  Audit  Committee’s  discussions  with  management,  the  internal  auditors  and  the  independent  auditors  as  described  above, 
and upon its review of the representation of management and the independent auditors and the reports of the independent auditors, the Audit 
Committee recommended to the Board that the Company’s audited consolidated ﬁnancial statements be included in the Company’s Annual 
Report on Form 10-K for the calendar year ended December 31, 2012, as ﬁled with the SEC.

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J.B. Hunt Transport Services, Inc.
2012 Audit Committee Members
James L. Robo, Chairman
Douglas G. Duncan
Sharilyn S. Gasaway
John A. White

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PROPOSAL NUMBER TWO 
RATIFICATION OF INDEPENDENT REGISTERED 
PUBLIC ACCOUNTING FIRM

The Audit Committee has selected Ernest & Young LLP as the Company’s independent registered public accounting ﬁrm to examine the 
consolidated ﬁnancial statements of the Company for the 2013 calendar year. The Board seeks an indication from our stockholders of their approval 
or disapproval of the Audit Committee’s selection of E&Y as the Company’s independent registered public accounting ﬁrm for the 2013 calendar year.

E&Y has been our independent auditor since 2005. No relationships exist other than the usual relationships between auditor and client. 
Representatives of E&Y are expected to be present at the Annual Meeting to respond to appropriate questions and will have the opportunity to 
make a statement if they desire to do so. If our stockholders do not ratify the appointment of E&Y at the Annual Meeting, the Audit Committee 
will consider such event in its selection of the Company’s independent registered public accounting ﬁrm for the 2013 calendar year. Additionally, 
even if the appointment is ratiﬁed, the Audit Committee, at its discretion, may direct the appointment of a different independent registered public 
accounting ﬁrm at any time during the 2013 calendar year if it determines that such a change would be in the best interests of the Company and 
its stockholders.

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE
FOR
THE RATIFICATION OF THE APPOINTMENT OF ERNST & YOUNG LLP
AS THE COMPANY’S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
FOR THE 2013 CALENDAR YEAR

AUDIT AND NONAUDIT FEES

The Audit Committee preapproves the audit and nonaudit services to be rendered to the Company, as well as the fees associated with such 
services. Generally, management will submit to the Audit Committee a detailed list of services that it recommends the Audit Committee engage 
the independent auditors to provide for the calendar year. The Audit Committee preapproves certain audit and nonaudit services and establishes 
a dollar limit on the amount of fees the Company will pay for each category of services. The Audit Committee is informed from time to time 
regarding the nonaudit services actually provided pursuant to the preapproval process. During the year, the Audit Committee periodically reviews 
the types of services and dollar amounts approved and adjusts such amounts, as it deems appropriate. Unless a service to be provided by the 
independent auditors has received general preapproval, it will require speciﬁc preapproval by the Audit Committee. The Audit Committee also 
periodically reviews all nonaudit services to ensure that such services do not impair the independence of the Company’s independent registered 
public accounting ﬁrm. The Audit Committee approved all services provided by E&Y for the 2012, 2011, and 2010 calendar years. These services 
included the audit of the Company’s annual ﬁnancial statements, audit of the Company’s internal control over ﬁnancial reporting, review of the 
Company’s quarterly ﬁnancial statements, employee beneﬁt plan, tax consultation services, and consents for and review of registration statements 
ﬁled with the SEC. See “Report of Audit Committee” set forth earlier for a discussion of auditor independence.

The following table shows the fees billed by E&Y for audit and other services provided to the Company for the 2012, 2011, and 2010 calendar 

years, respectively:

Audit fees (1) 
Audit-related fees (2) 
Tax fees (3) 
All other fees 

2012 ($) 
973,170 
25,000 
226,619 

2011 ($) 
930,750 
30,000 
11,654 

2010 ($)
991,500
25,192
69,023

(1)   Audit fees consisted of the audit of the Company’s annual ﬁnancial statements, including the audit of the effectiveness of internal control over ﬁnancial 
reporting, the review of the Company’s quarterly reports on Form 10-Q, and consents for and review of registration statements ﬁled with the SEC.

(2)   Audit-related fees consisted of an audit of the Employee Beneﬁt Plan.
(3)   Tax fees consisted principally of federal and state income tax consulting.

The Audit Committee has considered whether the nonaudit services provided by E&Y, including the services rendered in connection with 
income tax consultation, were compatible with maintaining E&Y’s independence and has determined that the nature and substance of the limited 
nonaudit services did not impair the status of E&Y as the Company’s independent registered public accounting ﬁrm. E&Y did not bill the Company 
for any other services during calendar years 2012, 2011, and 2010.

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Policy on Audit Committee Preapproval of Audit and Permissible Nonaudit Services of Independent Auditor

The Audit Committee has the responsibility of appointing, setting compensation for and overseeing the work of the independent auditor and 

has established a policy to preapprove all audit and permissible nonaudit services provided by the independent auditor.

Prior to the engagement of the independent auditor for next year’s audit, management will submit to the Audit Committee for approval an 

aggregate of services expected to be rendered during that year for each of four categories of services:

(cid:202)

(cid:202)

(cid:202)

(cid:202)

(cid:85)(cid:202) Audit services include audit work performed related to the ﬁnancial statements, as well as work that generally only the independent auditor 
can reasonably be expected to provide, including comfort letters, statutory audits, attestation services, and consultation regarding ﬁnancial 
accounting and/or reporting standards.

(cid:85)(cid:202) Audit-related services are for assurance and related services that are traditionally performed by the independent auditor, including due 
diligence  related  to  mergers  and  acquisitions,  employee  beneﬁt  plan  audits,  and  special  procedures  required  to  meet  certain  regulatory 
requirements.

(cid:85)(cid:202) Tax services include all services performed by the independent auditor’s tax personnel except those services speciﬁcally related to the audit 

of the ﬁnancial statements, including fees in the areas of tax compliance, tax planning and tax advice.

(cid:85)(cid:202) Other services are those not captured in the other categories. The Company generally doesn’t request such services from the independent 

auditor.

Prior to the engagement, the Audit Committee preapproves these services by category of service. The fees are budgeted and the Audit 
Committee  requires  the  independent  auditor  and  management  to  report  actual  fees  versus  the  budget  periodically  throughout  the  year  by 
category of service. During the year, circumstances may arise when it may become necessary to engage the independent auditor for additional 
services not contemplated in the original preapproval. In those instances, the Audit Committee requires speciﬁc preapproval before engaging 
the independent auditor.

The Audit Committee may delegate preapproval authority to one or more of its members. The member(s) to whom such authority is 

delegated must report, for informational purposes only, the preapproval decisions to the Audit Committee at its next scheduled meeting.

STOCKHOLDERS WHO DO NOT EXPECT TO ATTEND THE MEETING  
ARE URGED TO VOTE BY TELEPHONE, MAIL OR INTERNET

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IF YOU VOTE BY TELEPHONE OR THE INTERNET,
DO NOT RETURN YOUR PROXY CARD

By Order of the Board of Directors

DAVID G. MEE
Corporate Secretary

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42

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the ﬁscal year ended 
December 31, 2012 

Commission ﬁle number
0-11757

J.B. HUNT TRANSPORT SERVICES, INC.
(Exact name of registrant as speciﬁed in its charter)

Arkansas 
(State or other jurisdiction of 
incorporation or organization) 

615 J.B. Hunt Corporate Drive 
Lowell, Arkansas 
(Address of principal executive ofﬁces)

71-0335111
(I.R.S. Employer
Identiﬁcation No.)

72745-0130
(ZIP Code)

Registrant’s telephone number, including area code: 479-820-0000

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.01 Par Value

Indicate by check mark if the registrant is a well-known seasoned issuer, as deﬁned in Rule 405 of the Securities Act.
Yes __X__    No _____

Indicate by check mark if the registrant is not required to ﬁle reports pursuant to Section 13 or 15(d) of the Act.
Yes _____    No __X__

Indicate by check mark whether the registrant (1) has ﬁled all reports required to be ﬁled by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to ﬁle such reports), and (2) has been subject 
to such ﬁling requirements for the past 90 days.
Yes __X__    No _____

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File 
required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for 
such shorter period that the registrant was required to submit and post such ﬁles).
Yes __X__    No _____

Indicate by check mark if disclosure of delinquent ﬁlers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained 
herein, and will not be contained, to the best of the registrant’s knowledge, in deﬁnitive proxy or information statements incorporated by 
reference in Part III of this Form 10-K or any amendment to this Form 10-K.    [ X ]

Indicate by check mark whether the registrant is a large accelerated ﬁler, an accelerated ﬁler, a non-accelerated ﬁler, or a smaller reporting 
company. See the deﬁnitions of “large accelerated ﬁler,” “accelerated ﬁler” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated ﬁler __X__        Accelerated ﬁler _____        Non-accelerated ﬁler _____        Smaller reporting company _____

Indicate by check mark whether the registrant is a shell company (as deﬁned in Rule 12b-2 of the Exchange Act).
Yes _____    No __X__

The aggregate market value of 90,801,299 shares of the registrant’s $0.01 par value common stock held by non-afﬁliates as of June 29, 2012, was 
$5.4 billion (based upon $59.60 per share).

As of February 14, 2013, the number of outstanding shares of the registrant’s common stock was 117,549,810.

Certain portions of the Notice and Proxy Statement for the Annual Meeting of Stockholders, to be held April 25, 2013, are incorporated by 
reference in Part III of this Form 10-K.

DOCUMENTS INCORPORATED BY REFERENCE

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FORWARD-LOOKING STATEMENTS

This report, including documents which are incorporated by reference, and other documents which we ﬁle periodically with the Securities and Exchange 
Commission (SEC), contains statements that may be considered to be “forward-looking statements.” Such statements relate to our predictions concerning 
future events or operations and are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities 
Exchange Act of 1934, as amended. Forward-looking statements are inherently uncertain, subject to risks, and should be viewed with caution. These 
statements are based on our belief or interpretation of information currently available. Stockholders and prospective investors are cautioned that actual 
results and future events may differ materially from these forward-looking statements as a result of many factors. Some of the factors and events that are 
not within our control and that could have a material impact on future operating results include: general economic and business conditions, competition and 
competitive rate ﬂuctuations, cost and availability of diesel fuel, ability to attract and retain qualiﬁed drivers and delivery personnel, a loss of one or more 
major customers, interference with or termination of our relationships with certain railroads, insurance costs and availability, claims expense, retention of 
key employees, terrorist attacks or actions, acts of war, adverse weather conditions, new or different environmental or other laws and regulations, increased 
costs for new revenue equipment or decreases in the value of used equipment, and the ability of revenue equipment manufacturers to perform in accordance 
with agreements for guaranteed equipment trade-in values.

You should understand that many important factors, in addition to those listed above, could impact us ﬁnancially. Our operating results may ﬂuctuate as a 
result of these and other risk factors or events as described in our ﬁlings with the SEC. Some important factors that could cause our actual results to differ from 
estimates or projections contained in the forward-looking statements are described under “Risk Factors” in Item 1A. We assume no obligation to update any 
forward-looking statement to the extent we become aware that it will not be achieved for any reason.

PART I

ITEM 1. BUSINESS

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OVERVIEW
  We are one of the largest surface transportation, delivery and logistics companies in North America. J.B. Hunt Transport Services, Inc. is a 
publicly held holding company that, together with our wholly owned subsidiaries, provides safe and reliable transportation and delivery services 
to a diverse group of customers and consumers throughout the continental United States, Canada and Mexico. Unless otherwise indicated by the 
context, “we,” “us,” “our” and “JBHT” refer to J.B. Hunt Transport Services, Inc. and its consolidated subsidiaries. We were incorporated in Arkansas 
on August 10, 1961, and have been a publicly held company since our initial public offering in 1983. Our service offerings include transportation 
of  full-truckload  containerized  freight,  which  we  directly  transport  utilizing  our  company-controlled  revenue  equipment  and  company  drivers 
or independent contractors. We have arrangements with most of the major North American rail carriers to transport freight in containers or 
trailers. We also provide customized freight movement, revenue equipment, labor, systems and delivery services that are tailored to meet individual 
customers’ requirements and typically involve long-term contracts. These arrangements are generally referred to as dedicated services and may 
include multiple pickups and drops, local and home deliveries, freight handling, specialized equipment and freight network design. Our local and 
home delivery services typically are provided through a network of cross-dock service centers throughout the continental United States. Utilizing 
a network of thousands of reliable third-party carriers, we also provide comprehensive transportation and logistics services. In addition to dry-van, 
full-load operations, these unrelated outside carriers also provide ﬂatbed, refrigerated, less-than-truckload (LTL) and other specialized equipment, 
drivers and services. Our customer base is extremely diverse and includes a large number of Fortune 500 companies.

  We believe our ability to offer multiple services, utilizing our four business segments and a full complement of logistics services through third 
parties, represents a competitive advantage. These segments include Intermodal (JBI), Dedicated Contract Services® (DCS), Integrated Capacity 
Solutions (ICS), and full-load dry-van (JBT). Our business is somewhat seasonal, with slightly higher freight volumes typically experienced during 
August through early November. Our DCS segment is subject to somewhat less seasonal variation than our other segments. For the calendar year 
ended December 31, 2012, our consolidated revenue totaled $5.1 billion, after the elimination of intersegment business. Of this total, 61% was 
generated by our JBI business segment, 21% by DCS, 9% by ICS, and 9% by JBT. For the year ended December 31, 2011, JBI represented 59%, 
DCS 23%, ICS 7%, and JBT 11% of our consolidated revenue. For the year ended December 31, 2010, JBI represented 56%, DCS 24%, ICS 8%, 
and JBT 12% of our consolidated revenue.

Additional general information about us is available on our Internet website at www.jbhunt.com. We make a number of reports and other 
information available free of charge on our website, including our annual report on Form 10-K, our proxy statement and our earnings releases. 
Our website also contains corporate governance guidelines, our code of ethics, our whistleblower policy, Board committee charters and other 
corporate policies.

OUR MISSION AND STRATEGY
  We forge long-term partnerships with key customers that include supply-chain management as an integral part of their strategy. Working in 
concert, we drive out cost, add value and function as an extension of their enterprise. Our strategy is based on utilizing an integrated, multimodal 
approach  to  provide  capacity-oriented  solutions  centered  on  delivering  customer  value  and  industry-leading  service.  We  believe  our  unique 
operating strategy can add value to customers and increase our proﬁts and returns to stockholders.

44

 
 
 
 
 
RECENT FOCUS
  We continually analyze where we believe additional capital should be invested and management resources should be focused to provide added 
beneﬁts to our customers. These actions should, in turn, yield increasing returns to our stockholders. Unacceptable returns in certain areas have 
recently caused us to reduce the size of certain business segments and expand others.

Examples of our recent actions include focus on growth of capacity associated with the JBI segment and our continued concentration on 
the development and operation of one of the largest nationwide, ﬁnal-mile cross-dock networks supporting local commercial and home delivery 
activities within our DCS segment. This network supports our goal to provide best-in-class services that increase delivery and replenishment service 
offerings to both residential and commercial locations.

Increasingly, our customers are seeking energy-efﬁcient transportation solutions to reduce both cost and greenhouse-gas emissions. Our 
intermodal  service  addresses  both  demands.  Further,  we  are  customizing  dedicated  solutions  aimed  at  minimizing  transportation-related 
carbon emissions. Efforts to improve ﬂeet fuel efﬁciency are ongoing, and we are an Environmental Protection Agency (EPA) SmartWaySM 
Transport Partner.

As always, we continue to ingrain safety into our corporate culture and strive to conduct all of our operations as safely as possible.

OPERATING SEGMENTS

Segment information is also included in Note 10 to our Consolidated Financial Statements.

JBI Segment

The  transportation  service  offerings  of  our  JBI  segment  utilize  arrangements  with  most  major  North  American  rail  carriers  to  provide 
intermodal freight solutions for our customers throughout the continental United States, Canada and Mexico. Our JBI segment began operations 
in 1989 forming a unique partnership with what is now the BNSF Railway Company; this was a watershed event in the industry and the ﬁrst 
agreement that linked major rail and truckload carriers in a joint service environment. JBI draws on the intermodal services of rail carriers for 
the underlying linehaul movement of its equipment between rail ramps. The origin and destination pickup and delivery services (“drayage”) are 
handled by our company-owned tractors for the majority of our intermodal loads, while utilizing third-party dray carriers where economical. By 
performing our own drayage services, we are able to provide a cost-competitive, seamless coordination of the combined rail and dray movements 
for our customers.

JBI operates 58,962 pieces of company-owned trailing equipment systemwide. The ﬂeet primarily consists of 53-foot, high-cube containers 
and is designed to take advantage of intermodal double-stack economics and superior ride quality. The Company also owns and maintains its own 
chassis ﬂeet, consisting of 55,361 pieces. The containers and chassis are uniquely designed so that they may only be paired together, which the 
Company feels creates operational competitive advantage. JBI also manages a ﬂeet of 3,124 company-owned tractors, 472 independent contractor 
trucks and 3,859 company drivers who maintain our high service standards. At December 31, 2012, the total JBI employee count was 4,299. 
Revenue for the JBI segment in 2012 was $3.1 billion.

DCS Segment

DCS focuses on private ﬂeet conversion and creation in ﬁnal-mile delivery, replenishment and specialized equipment and services. We also 
specialize in the design, development and execution of supply-chain solutions that support a variety of transportation networks. Our ﬁnal-mile 
delivery services are supported with a network of approximately 88 cross-dock locations nationwide, with 98% of the continental U.S. population 
living within 150 miles of a cross-dock location. Our customer contracts are long-term, ranging from three to 10 years with the average being 
approximately  3½  years.  Pricing  of  our  contracts  typically  involves  cost-plus  arrangements,  with  our  ﬁxed  costs  being  recovered  regardless  of 
equipment utilization, but are customized based on invested capital and duration.

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At December 31, 2012, this segment operated 4,844 company-owned trucks, 394 customer-owned trucks, and 15 independent contractor 

trucks. The DCS segment employed 7,166 people at December 31, 2012, 5,907 of whom were drivers. DCS revenue for 2012 was $1.1 billion.

ICS Segment

ICS provides traditional freight brokerage and transportation logistics solutions to customers through relationships with thousands of third-
party carriers and integration with our owned equipment. By leveraging the J.B. Hunt brand, systems and network, we provide a broader service 
offering to customers by providing ﬂatbed, refrigerated, expedited and LTL, as well as a variety of dry-van and intermodal solutions. ICS provides 
single-source  logistics  management  for  customers  that  desire  to  outsource  their  transportation  functions  and  utilize  our  proven  supply-chain 
technology and design expertise to improve efﬁciency. ICS operates 15 remote sales ofﬁces or branches, as well as on-site logistics personnel working 
in direct contact with customers.

At December 31, 2012, the ICS segment employed 453 people, with a carrier base of approximately 32,300. ICS revenue for 2012 was 

$456 million.

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JBT Segment

The service offering in this segment is full-load, dry-van freight, utilizing tractors operating over roads and highways. We typically pick up 
freight at the dock or speciﬁed location of the shipper and transport the load directly to the location of the consignee. We use our company-owned 
tractors and employee drivers or independent contractors who agree to transport freight in our trailers.

At December 31, 2012, the JBT segment operated 1,192 company-owned tractors and employed 1,674 people, 1,282 of whom were drivers. 
At December 31, 2012, we had 901 independent contractors operating in the JBT segment, some of whom were leasing company-owned tractors. 
JBT revenue for 2012 was $484 million.

Marketing and Operations
  We transport, or arrange for the transportation of, a wide range of freight, including general merchandise, specialty consumer items, appliances, 
forest and paper products, food and beverages, building materials, soaps and cosmetics, automotive parts, electronics, and chemicals. Our customer 
base is extremely diverse and includes a large number of Fortune 500 companies. We provide a broad range of transportation services to shippers 
seeking to use a variety of transportation options to optimize their supply-chain logistics needs.

  We generally market all of our service offerings through a nationwide sales and marketing network. We use a speciﬁc sales force in DCS due 
to the length, complexity and specialization of the sales cycle. In addition, ICS utilizes its own local branch salespeople. In accordance with our 
typical arrangements, we bill the customer for all services and we, in turn, pay all third parties for their portion of transportation services provided.

People
  We believe that one of the factors differentiating us from our competitors is our service-oriented people. As of December 31, 2012, we had 
16,475 employees, which consisted of 11,048 company drivers, 4,300 ofﬁce personnel and 1,127 maintenance technicians. We also had arrangements 
with approximately 1,388 independent contractors to transport freight in our trailing equipment. None of our employees are represented by unions 
or covered by collective bargaining agreements.

Revenue Equipment

Our JBI segment utilizes uniquely designed high-cube containers and chassis, which can only be paired with each other and can be separated 
to allow the containers to be double-stacked on rail cars. The composition of our DCS trailing ﬂeet varies with speciﬁc customer requirements and 
may include dry-vans, ﬂatbeds, temperature-controlled, curtain-side vans, straight trucks and dump trailers. We primarily utilize third-party carriers’ 
tractor and trailing equipment for our ICS segment. Our JBT segment operates primarily with 53-foot dry-van trailers.

As of December 31, 2012, our company-owned tractor and truck ﬂeet consisted of 9,160 units. In addition, we had approximately 1,388 
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. Due to our customers’ preferences and the actual business application, our DCS ﬂeet is 
extremely diversiﬁed. We believe that operating with relatively newer revenue equipment provides better customer service, attracts quality drivers 
and lowers maintenance expense. At December 31, 2012, the average age of our combined tractor ﬂeet was 2.6 years, our containers averaged 
4.3 years of age and our trailers averaged 9.5 years. We perform routine servicing and preventive maintenance on our equipment at our regional 
terminal facilities.

Effective with model-year 2010 engines, the EPA has mandated lower emission standards for newly manufactured heavy-duty tractors. The 
2010 EPA-compliant engines have shown no material decrease in miles per gallon and a slight increase in operating costs due to more stringent 
maintenance procedures compared with prior engine standards due to Exhaust Gas Recirculation (EGR) and Selective Catalytic Reduction (SCR) 
technology, which achieve lower emissions.

Competition and the Industry

The freight transportation markets in which we operate are frequently referred to as highly fragmented and competitive. Our JBI segment 
competes with other intermodal marketing companies, other full-load carriers that utilize railroads for a portion of the transportation service, 
and, to a certain extent, some railroads directly. The diversiﬁed nature of the services provided by our DCS segment attracts competition from 
customers’ private ﬂeets, other private ﬂeet outsourcing companies, equipment leasing companies, local and regional delivery service providers, and 
some truckload carriers. Our ICS segment utilizes the fragmented nature of the truck industry and competes with other non-asset-based logistics 
companies and freight brokers, as well as full-load carriers. The full-load freight competition of our JBT segment includes thousands of carriers, 
many of which are very small. While we compete with a number of smaller carriers on a regional basis, only a limited number of companies 
represent competition in all markets across the country.

  We compete with other transportation service companies primarily in terms of price, on-time pickup and delivery service, availability and type 
of equipment capacity, and availability of carriers for logistics services.

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Regulation

Our operations as a for-hire motor carrier are subject to regulation by the U.S. Department of Transportation (DOT) and the Federal Motor 
Carrier Safety Administration (FMCSA), and certain business is also subject to state rules and regulations. The DOT periodically conducts reviews 
and audits to ensure our compliance with federal safety requirements, and we report certain accident and other information to the DOT. Our 
operations into and out of Canada and Mexico are subject to regulation by those countries.

In February, 2011, the FMCSA published a Notice of Proposed Rulemaking to require currently logging drivers to complete their logs using 

an Electronic On-Board Recorder (EOBR) and accepted comments from the public. This proposal is ongoing.

In December 2011, the FMCSA amended the hours-of-service (HOS) safety requirements for commercial truck drivers. Some provisions of 
the HOS Final Rule became effective February 27, 2012; others are effective July 1, 2013. While we are currently evaluating the impact of the Final 
Rule on various segments of our operations to determine implications, we expect some negative impact on our productivity.

In July 2012, President Obama signed into law the Moving Ahead for Progress in the 21st Century Act (MAP-21), which included a variety 
of requirements relating to the transportation industry. We are currently evaluating the impact of MAP-21, but do not anticipate a negative impact 
on our operations or productivity.

  We continue to monitor the actions of the FMCSA and other regulatory agencies and evaluate all proposed rules to determine their impact 
on our operations.

ITEM 1A. RISK FACTORS

In addition to the forward-looking statements outlined previously in this Form 10-K and other comments regarding risks and uncertainties, 
the following risk factors should be carefully considered when evaluating our business. Our business, ﬁnancial condition or ﬁnancial results could 
be materially and adversely affected by any of these risks.

Our  business  is  subject  to  general  economic  and  business  factors,  any  of  which  could  have  a  material  adverse  effect  on  our  results  of 
operations. Economic trends and the tightening of credit in ﬁnancial markets could adversely affect our ability, and the ability of our customers 
and suppliers, to obtain ﬁnancing for operations and capital expenditures.

Our business is dependent upon a number of factors that may have a material adverse effect on the results of our operations, many of which 
are beyond our control. These factors include interference with, or termination of, our relationships with certain railroads, signiﬁcant increases or 
rapid ﬂuctuations in fuel prices, fuel taxes, interest rates, insurance premiums, self-insurance levels, excess capacity in the intermodal or trucking 
industries,  license  and  registration  fees,  terrorist  attacks  or  actions,  acts  of  war,  adverse  weather  conditions,  increased  costs  for  new  revenue 
equipment or decreases in the value of used equipment, and difﬁculty in attracting and retaining qualiﬁed drivers, independent contractors and 
third-party carriers.

  We  are  also  affected  by  recessionary  economic  cycles  and  downturns  in  customers’  business  cycles,  particularly  in  market  segments  and 
industries such as retail and manufacturing, where we have a signiﬁcant concentration of customers. Economic conditions represent a greater 
potential for loss, and we may be required to increase our reserve for bad debt losses. In addition, our results of operations may be affected by seasonal 
factors. Customers tend to reduce shipments after the winter holiday season, and our operating expenses tend to be higher in the winter months, 
primarily due to colder weather, which causes higher fuel consumption from increased idle time and higher maintenance costs.

We depend on third parties in the operation of our business.

Our  JBI  business  segment  utilizes  railroads  in  the  performance  of  its  transportation  services.  The  majority  of  these  services  are  provided 
pursuant to contractual relationships with the railroads. While we have agreements with a number of Class I railroads, the majority of our business 
travels on the Burlington Northern Santa Fe and the Norfolk Southern railways. The inability to utilize one or more of these railroads could have a 
material adverse effect on our business and operating results. In addition, a portion of the freight we deliver is imported to the United States through 
ports of call that are subject to labor union contracts. Work stoppages or other disruptions at any of these ports could have a material adverse effect 
on our business.

Our  ICS  and  JBT  business  segments  utilize  third  parties  to  complete  their  services.  These  third  parties  are  subject  to  similar  regulation 
requirements, which may have a more signiﬁcant impact on their operations, causing them to exit the transportation industry. Aside from use of our 
trailing equipment to fulﬁll JBT loads and periodic use of our trailing equipment to fulﬁll certain ICS loads, we do not own the revenue equipment 
or control the drivers delivering these loads. The inability to obtain reliable third-party carriers could have a material adverse effect on our operating 
results and business growth.

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Rapid changes in fuel costs could impact our periodic ﬁnancial results.

Fuel costs can be very volatile. We have a fuel surcharge revenue program in place with the majority of our customers, which has historically 
enabled us to recover the majority of higher fuel costs. Most of these programs automatically adjust weekly depending on the cost of fuel. However, 
there can be timing differences between a change in our fuel cost and the timing of the fuel surcharges billed to our customers. In addition, we incur 
additional costs when fuel price increases cannot be fully recovered due to our engines being idled during cold or warm weather and empty or out-of-
route miles that cannot be billed to customers. Rapid increases in fuel costs or shortages of fuel could have a material adverse effect on our operations 
or future proﬁtability. As of December 31, 2012, we had no derivative ﬁnancial instruments to reduce our exposure to fuel-price ﬂuctuations.

Insurance and claims expenses could signiﬁcantly reduce our earnings.

Our  future  insurance  and  claims  expenses  might  exceed  historical  levels,  which  could  reduce  our  earnings.  If  the  number  or  severity 
of claims for which we are self-insured increases, our operating results could be adversely affected. We have policies in place for 2013 with 
substantially the same terms as our 2012 policies for personal injury, workers’ compensation, cargo and property damage, with the exception 
of changing to a $100,000 deductible per claim for workers’ compensation coverage. We purchase insurance coverage for the amounts above 
which we are self-insured. If these expenses increase and we are unable to offset the increase with higher freight rates, our earnings could be 
materially and adversely affected.

We derive a signiﬁcant portion of our revenue from a few major customers, the loss of one or more of which could have a material adverse 
effect on our business.

For the calendar year ended December 31, 2012, our top 10 customers, based on revenue, accounted for approximately 30% of our revenue. 
Our JBI, ICS and JBT segments typically do not have long-term contracts with their customers. While our DCS segment business may involve a 
long-term written contract, those contracts may contain cancellation clauses, and there is no assurance that our current customers will continue to 
utilize our services or continue at the same levels. A reduction in or termination of our services by one or more of our major customers could have 
a material adverse effect on our business and operating results.

We operate in a regulated industry, and increased direct and indirect costs of compliance with, or liability for violation of, existing or future 
regulations could have a material adverse effect on our business.

The DOT and various state agencies exercise broad powers over our business, generally governing matters including authorization to engage 
in motor carrier service, equipment operation, safety and ﬁnancial reporting. We are audited periodically by the DOT to ensure that we are in 
compliance with various safety, hours-of-service, and other rules and regulations. If we were found to be out of compliance, the DOT could restrict 
or otherwise impact our operations.

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Signiﬁcant changes in hours-of-service regulations and other motor carrier safety regulations could negatively impact our operations due to 
lower driver productivity or increased capital expenditures for monitoring and recordkeeping equipment. In December 2011, the FMCSA amended 
the hours-of-service (HOS) safety requirements for commercial truck drivers. Some provisions of the HOS Final Rule became effective February 
27, 2012; others are effective July 1, 2013. While we are currently evaluating the impact of the Final Rule on various segments of our operations to 
determine implications, we expect some negative impact on our productivity.

Difﬁculty in attracting and retaining drivers, delivery personnel and third-party carriers could affect our proﬁtability and ability to grow.

If we are unable to attract and retain the necessary quality and number of employees or contract with enough independent contractors, 
we could be required to signiﬁcantly increase our employee compensation package, let revenue equipment sit idle or dispose of the equipment 
altogether, which could adversely affect our growth and proﬁtability. In addition, our growth could be limited by an inability to attract third-party 
carriers upon whom we rely to provide transportation services.

We operate in a competitive and highly fragmented industry. Numerous factors could impair our ability to maintain our current proﬁtability 
and to compete with other carriers and private ﬂeets.
  We compete with many other transportation service providers of varying sizes and, to a lesser extent, with LTL carriers and railroads, some of 
which have more equipment and greater capital resources than we do. Additionally, some of our competitors periodically reduce their freight rates 
to gain business, especially during times of reduced growth rates in the economy, which may limit our ability to maintain or increase freight rates or 
to maintain our proﬁt margins.

In an effort to reduce the number of carriers it uses, a customer often selects so-called “core carriers” as approved transportation service 
providers, and in some instances we may not be selected. Many customers periodically accept bids from multiple carriers for their shipping needs, 
and this process may depress freight rates or result in the loss of some business to competitors. Also, certain customers that operate private ﬂeets to 
transport their own freight could decide to expand their operations, thereby reducing their need for our services.

Extreme or unusual weather conditions can disrupt our operations, impact freight volumes and increase our costs, all of which could have a 
material adverse effect on our business results.

Certain weather conditions such as ice and snow can disrupt our operations. Increases in the cost of our operations, such as towing and 
other maintenance activities, frequently occur during the winter months. Natural disasters such as hurricanes and ﬂooding can also impact freight 
volumes and increase our costs.

48

 
 
 
 
 
 
 
 
 
 
Our operations are subject to various environmental laws and regulations, the violation of which could result in substantial ﬁnes or penalties.
  We are subject to various environmental laws and regulations dealing with the handling of hazardous materials, underground fuel storage 
tanks, and discharge and retention of storm water. We operate in industrial areas, where truck terminals and other industrial activities are located, 
and where groundwater or other forms of environmental contamination have occurred. Our operations involve the risks of fuel spillage or seepage, 
environmental damage and hazardous waste disposal, among others. We also maintain bulk fuel storage and fuel islands at several of our facilities. If 
a spill or other accident involving hazardous substances occurs, or if we are found to be in violation of applicable laws or regulations, it could have 
a material adverse effect on our business and operating results. If we should fail to comply with applicable environmental regulations, we could be 
subject to substantial ﬁnes or penalties and to civil and criminal liability.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

Our corporate headquarters are in Lowell, Arkansas. We occupy a number of buildings in Lowell that we utilize for administrative support, 
customer service, freight dispatch, and data processing and warehousing. We maintain a backup data center for disaster recovery, maintenance shop 
and driver operations facility in Lowell. We also own or lease approximately 40 other signiﬁcant facilities across the United States where we perform 
maintenance on our equipment, provide bulk fuel and employ personnel to support operations. These facilities vary from one acre to 35 acres in 
size. Each of our business segments utilizes these facilities for various services, including bulk fueling, maintenance and driver support activities. 
In addition, we have approximately 88 leased facilities in our DCS cross-dock and delivery system network and 13 leased remote sales ofﬁces or 
branches used in our ICS segment. Excluded from the following table are leases for small ofﬁces and parking yards throughout the country that 
support our customers’ business needs.

A summary of our principal facilities in locations throughout the U.S. follows:

Type 
Maintenance and support facilities 
Cross-dock and delivery system facilities 
Corporate headquarters, Lowell, Arkansas 
Ofﬁces and data center, Lowell, Arkansas 
Branch sales ofﬁces 

Acreage 
471 
– 
117 
8 
– 

Maintenance Shop/
Cross-dock Facility 
(square feet) 
786,000 
1,208,000 
– 
– 
– 

Ofﬁce Space
(square feet)
216,000
88,000
262,000
40,000
27,000

ITEM 3. LEGAL PROCEEDINGS
  We are involved in certain claims and pending litigation arising from the normal conduct of business. Based on present knowledge of the facts 
and, in certain cases, opinions of outside counsel, we believe the resolution of claims and pending litigation will not have a material adverse effect 
on our ﬁnancial condition, results of operations or liquidity.

  We are a defendant in certain class-action lawsuits in which the plaintiffs are current and former California-based drivers who allege claims for 
unpaid wages, failure to provide meal and rest periods, and other items. Further proceedings had been stayed in these matters pending the California 
Supreme Court’s decision in a case unrelated to ours involving similar issues. During the second quarter of 2012, the California Supreme Court 
issued its decision in this unrelated case and during the fourth quarter of 2012, we ﬁled a motion to decertify the class, which was heard and denied. 
We intend to ﬁle a motion to stay further proceedings pending a decision in the Ninth Circuit Court of Appeals on yet another unrelated case, but 
again with similar issues. We cannot reasonably estimate at this time the possible loss or range of loss, if any, that may arise from these lawsuits.

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ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER 
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock is traded in the over-the-counter market under the symbol “JBHT.” At December 31, 2012, we were authorized to issue 
up to 1 billion shares of our common stock, and 167.1 million shares were issued. We had 117.5 million and 116.9 million shares outstanding as of 
December 31, 2012 and 2011, respectively. The high and low sales prices of our common stock as reported by the National Association of Securities 
Dealers Automated Quotations National Market system (NASDAQ) and the quarterly dividends paid per share on our common shares were:

Period 
2012
First Quarter 
Second Quarter 
Third Quarter 
Fourth Quarter 

2011 
First Quarter 
Second Quarter 
Third Quarter 
Fourth Quarter 

Dividends Paid 

High 

Low

$  0.14 
0.14 
0.14 
0.29 

$  0.13 
0.13 
0.13 
0.13 

$  55.30 
61.18 
60.19 
60.67 

$  45.74 
48.53 
49.12 
46.59 

$  43.94
51.88
50.56
51.47

$  39.72
42.67
34.42
34.88

On February 14, 2013, the high and low sales prices for our common stock as reported by the NASDAQ were $67.70 and $66.66, respectively, 

and we had 1,107 stockholders of record.

DIVIDEND POLICY

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Our dividend policy is subject to review and revision by the Board of Directors, and payments are dependent upon our ﬁnancial condition, 
earnings, capital requirements and any other factors the Board of Directors may deem relevant. On December 7, 2012, we announced an increase 
and a pull forward of our regular quarterly dividend typically paid in February of each calendar year. The increase announced was from $0.14 to 
$0.15, which was paid December 28, 2012, to stockholders of record on December 17, 2012. We do not expect to declare or pay a quarterly dividend 
in the ﬁrst quarter of 2013 and intend to resume paying quarterly cash dividends in the second quarter of 2013. However, no assurance can be given 
that future dividends will be paid.

PURCHASES OF EQUITY SECURITIES

The following table summarizes purchases of our common stock during the three months ended December 31, 2012:

Period 

October 1 through October 31, 2012 
November 1 through November 30, 2012 
December 1 through December 31, 2012 
        Total 

Number of 
Common Shares 
Purchased 

– 
666,223 
182,787 
849,010 

Average Price Paid 
Per Common Share 
Purchased 
$         – 

60.04(2) 
54.71 
$  58.89 

Total Number 
of Shares 
Purchased as 
Part of a Publicly 
Announced Plan(1) 

– 
666,223 
182,787 
849,010 

Maximum Dollar
Amount of Shares
That May Yet
Be Purchased
Under the Plan
(in millions)
$  503
463
453
$  453

(1)   On April 28, 2010, our Board of Directors authorized the purchase of up to $500 million of our common stock. On October 27, 2011, our Board of 

Directors authorized an additional purchase of $500 million of our common stock.

(2)   Number of common shares and average price paid per common share reﬂect the effective total purchases upon completion of our $50 million accelerated 
repurchase program, which commenced in November 2012. Terms of the program included a deferment of 182,787 shares until program completion in 
December 2012.

50

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STOCK PERFORMANCE GRAPH

The following graph compares the cumulative 5-year total return of stockholders of our common stock relative to the cumulative total returns 
of the S&P 500 index and a customized peer group. The peer group consists of 13 companies: Arkansas Best Corp., CH Robinson Worldwide Inc., 
CON-Way Inc., Expeditor International Of Washington, HUB Group Inc., Kansas City Southern, Landstar System Inc., Old Dominion Freight 
Line Inc., Pacer International Inc., Ryder System Inc., Swift Transportation Company, UTI Worldwide Inc., and Werner Enterprises Inc. The 
graph assumes that the value of the investment in our common stock, in each of the peer groups, and in the index (including reinvestment of 
dividends) was $100 on December 31, 2007, and tracks it through December 31, 2012. The stock price performance included in this graph is not 
necessarily indicative of future stock price performance.

COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN
Among J.B. Hunt Transport Services, Inc, S&P 500 Index, and a Peer Group

$250

$200

$150

$100

$50

$0

2007 

2008 

2009 

2010 

2011 

2012

J.B. Hunt Transport Services, Inc.

S&P 500

Peer Group  

J.B. Hunt Transport Services, Inc. 
S&P 500 
Peer Group 

Years Ended December 31

2007 
$100.00 
100.00 
100.00 

2008 
$96.60 
63.00 
86.71 

2009 
$120.60 
79.67 
96.41 

2010 
$154.64 
91.67 
133.92 

2011 
$172.80 
93.61 
124.94 

2012
$231.87
108.59
128.74

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

Plan Category(1) 

Equity compensation plans  
    approved by security holders 

Number of Securities 
To Be Issued 
Upon Exercise of 
Outstanding Options, 
Warrants and Rights 
(A) 

Weighted-average 
Exercise Price of 
Outstanding Options, 
Warrants and Rights 
(B) 

Number of Securities
Remaining Available for Future
Issuance Under Equity
Compensation Plans (Excluding
Securities Reﬂected in Column (A))
(C)

4,176,054 

$ 4.11(2) 

9,071,146

(1)   We have no equity compensation plans that are not approved by security holders.

(2)   Upon vesting, restricted share units are settled with shares of our common stock on a one-for-one basis. Accordingly, the restricted share units have been 

excluded for purposes of computing the weighted-average exercise price.

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ITEM 6. SELECTED FINANCIAL DATA
(Dollars in millions, except per share amounts)

Earnings data for the years ended December 31, 
Operating revenues 
Operating income 
Net earnings 
Basic earnings per share 
Diluted earnings per share 
Cash dividends per share 
Operating expenses as a percentage of operating revenues:
    Rents and purchased transportation 
    Salaries, wages and employee beneﬁts 
    Fuel and fuel taxes 
    Depreciation and amortization 
    Operating supplies and expenses 
    Insurance and claims 
    General and administrative expenses, net of asset dispositions 
    Operating taxes and licenses 
    Communication and utilities 
            Total operating expenses 
        Operating income 
    Net interest expense 
    Equity in operations of afﬁliated company 
        Earnings before income taxes 
    Income taxes 
        Net earnings 

Balance sheet data as of December 31, 
Working capital ratio 
Total assets (millions) 
Stockholders’ equity (millions) 
Current portion of long-term debt (millions) 
Total debt (millions) 
Total debt to equity 
Total debt as a percentage of total capital 

2012 
$  5,055 
530 
310 
2.64 
2.59 
0.71 

2011 
$  4,527 
444 
257 
2.16 
2.11 
0.52 

2010 
$  3,793 
348 
200 
1.60 
1.56 
0.48 

2009 
$  3,203 
248 
136 
1.08 
1.05 
0.44 

2008
$  3,732
358
201
1.60
1.56
0.40

49.2% 
20.5 
9.2 
4.5 
3.5 
1.1 
0.6 
0.6 
0.3 
89.5 
10.5 
0.5 
– 
10.0 
3.9 
6.1% 

46.9% 
22.1 
10.2 
4.7 
3.6 
1.0 
0.7 
0.6 
0.4 
90.2 
9.8 
0.6 
– 
9.2 
3.5 
5.7% 

45.1% 
24.0 
9.1 
5.2 
4.0 
1.3 
1.0 
0.7 
0.4 
90.8 
9.2 
0.8 
– 
8.4 
3.1 
5.3% 

43.6% 
24.9 
8.5 
5.9 
4.7 
1.6 
1.6 
0.9 
0.6 
92.3 
7.7 
0.8 
(0.1) 
7.0 
2.7 
4.3% 

39.6%
23.0
14.0
5.4
4.2
1.6
1.1
0.9
0.6
90.4
9.6
0.9
–
8.7
3.3
5.4%

2012 
1.10 
$  2,465 
$     792 
$     100 
$  685.3 
0.87 

2011 
1.17 
$  2,267 
$     568 
$       50 
$  749.2 
1.32 

2010 
0.91 
$  1,962 
$     573 
$     200 
$  654.2 
1.14 

2009 
1.46 
$  1,857 
$     644 
– 
$  565.0 
0.88 

2008
0.97
$  1,793
$     529
$     119
$  633.5
1.20

46% 

57% 

53% 

47% 

54%

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 
AND RESULTS OF OPERATIONS

The following discussion of our results of operations and ﬁnancial condition should be read in conjunction with our ﬁnancial statements and related 
notes in Item 8. This discussion contains forward-looking statements. Please see “Forward-looking Statements” and “Risk Factors” for a discussion of items, 
uncertainties, assumptions and risks associated with these statements.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of our ﬁnancial statements in accordance with U.S. generally accepted accounting principles requires us to make estimates 
and assumptions that impact the amounts reported in our Consolidated Financial Statements and accompanying notes. Therefore, the reported 
amounts of assets, liabilities, revenues, expenses and associated disclosures of contingent liabilities are affected by these estimates. We evaluate 
these estimates on an ongoing basis, utilizing historical experience, consultation with third parties and other methods considered reasonable in 
the particular circumstances. Nevertheless, actual results may differ signiﬁcantly from our estimates. Any effects on our business, ﬁnancial position 
or results of operations resulting from revisions to these estimates are recognized in the accounting period in which the facts that give rise to the 
revision become known. We consider our critical accounting policies and estimates to be those that require us to make more signiﬁcant judgments 
and estimates when we prepare our ﬁnancial statements and include the following:

Workers’ Compensation and Accident Costs
  We purchase insurance coverage for a portion of expenses related to employee injuries, vehicular collisions, accidents and cargo damage. We 
are substantially self-insured for loss of and damage to our owned and leased revenue equipment. Certain insurance arrangements include a level of 
self-insurance (deductible) coverage applicable to each claim. We have umbrella policies to limit our exposure to catastrophic claim costs that are 
completely insured.

The amounts of self-insurance change from time to time based on measurement dates, policy expiration dates and claim type. For 2010 
through 2012, we were self-insured for $500,000 per occurrence for personal injury and property damage and fully insured for substantially all 
workers’ compensation claims. We have policies in place for 2013 with substantially the same terms as our 2012 policies for personal injury, workers’ 
compensation, cargo and property damage, with the exception of adding a $100,000 deductible per claim for workers’ compensation coverage.

Our claims accrual policy for all self-insured claims is to recognize a liability at the time of the incident based on our analysis of the nature 
and severity of the claims and analyses provided by third-party claims administrators, as well as legal, economic and regulatory factors. Our safety 
and claims personnel work directly with representatives from the insurance companies to continually update the estimated cost of each claim. 
The ultimate cost of a claim develops over time as additional information regarding the nature, timing and extent of damages claimed becomes 
available. Accordingly, we use an actuarial method to develop current claim information to derive an estimate of our ultimate claim liability. This 
process involves the use of loss-development factors based on our historical claims experience and includes a contractual premium adjustment 
factor, if applicable. In doing so, the recorded liability considers future claims growth and, if applicable, conversion to fully insured status and 
provides an allowance for incurred-but-not-reported claims. We do not discount our estimated losses. At December 31, 2012, we had an accrual 
of approximately $38 million for estimated claims. In addition, we are required to pay certain advanced deposits and monthly premiums. At 
December 31, 2012, we had a prepaid insurance asset of approximately $35 million, which represented prefunded premiums.

Revenue Equipment
  We operate a signiﬁcant number of tractors, trucks, containers, chassis and trailers in connection with our business. This equipment may 
be purchased or acquired under lease agreements. In addition, we may rent revenue equipment from various third parties under short-term rental 
arrangements. Revenue equipment that is purchased is depreciated on the straight-line method over the estimated useful life 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 impairment to our assets at December 31, 2012.

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  We have agreements with our primary tractor suppliers 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 suppliers were 
unable to perform under the terms of our agreements for trade-in values, it could have a material adverse effect on our ﬁnancial results.

Revenue Recognition
  We recognize revenue based on the relative transit time of the freight transported and as other services are provided. Accordingly, a portion of 
the total revenue that will be billed to the customer once a load is delivered is recognized in each reporting period based on the percentage of the 
freight pickup and delivery service that has been completed at the end of the reporting period.

  We record revenues on the gross basis at amounts charged to our customers because we are the primary obligor, we are a principal in the 
transaction, we invoice our customers and retain all credit risks, and we maintain discretion over pricing. Additionally, we are responsible for the 
selection of third-party transportation providers.

Our trade accounts receivable includes amounts due from customers that have been reduced by an allowance for uncollectible accounts and 
revenue adjustments. The allowance for uncollectible accounts and revenue adjustments is based on historical experience, as well as any known 
trends or uncertainties related to customer billing and account collectability. The adequacy of our allowance is reviewed quarterly.

53

 
 
 
 
 
 
 
Income Taxes
  We  account  for  income  taxes  under  the  liability  method.  Our  deferred  tax  assets  and  liabilities  represent  items  that  will  result  in  a  tax 
deduction or taxable income in future years for which we have already recorded the related tax expense or beneﬁt in our statement of earnings. 
Deferred tax accounts arise as a result of timing differences between when items are recognized in our Consolidated Financial Statements compared 
with when they are recognized in our tax returns. We assess the likelihood that deferred tax assets will be recovered from future taxable income. To 
the extent we believe recovery does not meet the more-likely-than-not threshold, a valuation allowance is established. To the extent we establish 
a valuation allowance, we include an expense as part of our income tax provision.

Signiﬁcant judgment is required in determining and assessing the impact of complex tax laws and certain tax-related contingencies on our 
provision for income taxes. As part of our calculation of the provision for income taxes, we assess whether the beneﬁts of our tax positions are at 
least more likely than not of being sustained upon audit based on the technical merits of the tax position. For tax positions that are more likely than 
not of being sustained upon audit, we accrue the largest amount of the beneﬁt that is more likely than not of being sustained in our Consolidated 
Financial Statements. Such accruals require us to make estimates and judgments, whereby actual results could vary materially from these estimates. 
Further, a number of years may elapse before a particular matter for which we have established an accrual is audited and resolved. See Note 6, 
Income Taxes, in our Consolidated Financial Statements, for a discussion of our current tax contingencies.

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RESULTS OF OPERATIONS

The following table sets forth items in our Consolidated Statements of Earnings as a percentage of operating revenues and the percentage 

increase or decrease of those items as compared with the prior year.

Percentage of 
Operating Revenues 
2011 
100.0% 

2012 
100.0% 

2010 
100.0% 

Percentage Change
Between Years

2012 vs. 2011 
11.7% 

2011 vs. 2010
19.3%

49.2 
20.5 
9.2 
4.5 
3.5 
1.1 

0.6 
0.6 
0.3 
89.5 
10.5 
0.5 
10.0 
3.9 
6.1% 

46.9 
22.1 
10.2 
4.7 
3.6 
1.0 

0.7 
0.6 
0.4 
90.2 
9.8 
0.6 
9.2 
3.5 
5.7% 

45.1 
24.0 
9.1 
5.2 
4.0 
1.3 

1.0 
0.7 
0.4 
90.8 
9.2 
0.8 
8.4 
3.1 
5.3% 

17.1 
3.6 
0.5 
7.1 
11.3 
19.8 

(5.8) 
5.7 
(4.0) 
10.8 
19.4 
(10.3) 
21.4 
22.4 
20.8% 

24.1
10.0
34.9
8.6
5.2
(6.9)

(21.9)
3.6
0.0
18.5
27.8
2.0
30.0
32.2
28.7%

Operating revenues 

Operating expenses:
        Rents and purchased transportation 
        Salaries, wages and employee beneﬁts 
        Fuel and fuel taxes 
        Depreciation and amortization 
        Operating supplies and expenses 
        Insurance and claims 
        General and administrative expenses,
                net of asset dispositions 
        Operating taxes and licenses 
        Communication and utilities 
                Total operating expenses 
        Operating income 
Net interest expense 
        Earnings before income taxes 
Income taxes 
        Net earnings 

2012 COMPARED WITH 2011

Consolidated Operating Revenues

Our total consolidated operating revenues were $5.1 billion in 2012, an 11.7% increase over 2011. Higher fuel prices during the current year 
and overall increased load volume resulted in fuel surcharge (FSC) revenues of $997 million in 2012, compared with $849 million in 2011. If FSC 
revenues were excluded from both years, our 2012 revenue increased 10.3% over 2011, driven primarily by our consolidated load growth in the 
current year.

Consolidated Operating Expenses

Our 2012 consolidated operating expenses increased 10.8% from 2011, compared to the 11.7% increase in revenue year over year. This 
combination resulted in an improvement in our operating ratio to 89.5% from 90.2% in 2011. Rents and purchased transportation costs increased 
17.1% in 2012, primarily due to the increase in load volume that increased services from third-party rail and truck carriers. In addition, rates paid 
to third-party carriers in 2012 increased when compared to 2011 due to a tighter supply of qualiﬁed providers and the higher price of fuel, since fuel 
costs of third-party rail and truck carriers are included in purchased transportation expense. The total cost of salaries, wages and employee beneﬁts 
increased 3.6% in 2012 from 2011. This increase primarily related to increases in driver pay, caused by increased business demand and a tighter 
supply of qualiﬁed drivers and an increase in overall employee health care costs, partially offset by decreases in ofﬁce personnel compensation costs.

Fuel and fuel taxes expense remained relatively ﬂat, increasing only 0.5% in 2012 compared with 2011, due to increases in fuel prices being 
offset by improved fuel efﬁciency and fewer Company road miles during the current year. We have fuel surcharge programs in place with the 
majority of our customers. These programs typically involve a speciﬁed computation based on the change in national, regional or local fuel prices. 
While these programs may incorporate fuel cost increases as frequently as weekly, most also reﬂect a speciﬁed miles-per-gallon factor and require 
a certain minimum change in fuel costs to trigger a change in fuel surcharge revenue. As a result, some of these programs have a time lag between 
when fuel costs change and when this change is reﬂected in revenues. Due to these programs, this lag negatively impacts operating income in times 
of rapidly increasing fuel costs and positively impacts operating income when fuel costs decrease rapidly.

It is not meaningful to compare the amount of fuel surcharge revenue or the change in fuel surcharge revenue between reporting periods to fuel 
and fuel taxes expense, or the change of fuel expense between periods, as a signiﬁcant portion of fuel costs is included in our payments to railroads, 
dray carriers and other third parties. These payments are classiﬁed as purchased transportation expense.

Depreciation and amortization expense increased 7.1% in 2012, primarily due to additions to our JBI segment container and chassis ﬂeet to 
support additional business demand, as well as truck and tractor growth and trades in our JBI, DCS and JBT segments. Operating supplies and 
expenses increased 11.3%, driven primarily by toll rate increases and increased tire cost and usage. Insurance and claims expense increased 19.8% 
for 2012, primarily due to increased accident severity and customer cargo claims. The 5.8% decrease in general and administrative expenses was 
primarily the result of a decrease in bad debt expense due to a 2011 customer bankruptcy and an increase in net gains from asset sales. Net gains 
from sale of revenue equipment were $17 million in 2012, compared with $14 million in 2011.

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Net interest expense for 2012 decreased by 10.3% compared with 2011. This decrease was primarily due to a decrease in debt levels and lower 

interest rates.

Our effective income tax rate was 38.5% in 2012 and 38.2% in 2011. The increase in 2012 was primarily related to an increase in the provision 

for uncertain tax positions taken in prior years. We expect our effective income tax rate to be between 38.0% and 38.5% for calendar year 2013.

Segments
  We  operated  four  business  segments  during  calendar  year  2012.  The  operation  of  each  of  these  businesses  is  described  in  our  Notes  to 
Consolidated Financial Statements. The following tables summarize ﬁnancial and operating data by segment:

Operating Revenue by Segment

Years Ended December 31,
(in millions)

2012 
$  3,071 
1,080 
456 
484 
5,091 
(36) 
$  5,055 

2011 
$  2,673 
1,031 
356 
504 
4,564 
(37) 
$  4,527 

2010
$  2,141
907
291
479
3,818
(25)
$  3,793

Years Ended December 31,
(in millions)

2012 
$     375 
116 
16 
23 
$     530 

2011 
$     301 
103 
13 
27 
$     444 

2010
$     237
83
9
19
$     348

JBI 
DCS 
ICS 
JBT 
    Total segment revenues 
Intersegment eliminations 
    Total 

Operating Income by Segment

JBI 
DCS 
ICS 
JBT 
    Total 

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Operating Data by Segment

JBI
Loads 
Average length of haul (miles) 
Revenue per load 
Average tractors during the period(1) 
Tractors (end of period)
    Company-owned 
    Independent contractor 
        Total tractors 
Trailing equipment (end of period) 
Average effective trailing equipment usage 

DCS
Loads 
Average length of haul (miles) 
Revenue per truck per week(2) 
Average trucks during the period(3) 
Trucks (end of period)
    Company-owned 
    Independent contractor 
    Customer-owned (Dedicated-operated) 
        Total trucks 
Trailing equipment (end of period) 
Average effective trailing equipment usage 

ICS
Loads 
Revenue per load 
Gross proﬁt margin 
Employee count (end of period) 
Approximate number of third-party carriers (end of period) 

JBT
Loads 
Average length of haul (miles) 
Loaded miles (000) 
Total miles (000) 
Average nonpaid empty miles per load 
Revenue per tractor per week(2) 
Average tractors during the period(1) 
Tractors (end of period)
    Company-owned 
    Independent contractor 
        Total tractors 
Trailing equipment (end of period) 
Average effective trailing equipment usage 

(1)   Includes company-owned and independent contractor tractors
(2)   Using weighted workdays
(3)   Includes company-owned, independent contractor, and customer-owned trucks

Years Ended December 31, 

2012 

2011 

2010

1,415,663 
1,702 
$        2,169 
3,417 

1,248,302 
1,726 
$        2,141 
2,924 

1,075,027
1,777
$        1,992
2,531

3,124 
472 
3,596 
58,962 
54,302 

2,901 
213 
3,114 
54,506 
49,482 

2,592
81
2,673
45,666
41,434

1,522,740 
201 
$        4,164 
5,057 

1,444,518 
205 
$        4,175 
4,811 

1,383,565
197
$        3,956
4,468

4,844 
15 
394 
5,253 
13,448 
13,932 

4,571 
17 
330 
4,918 
11,211 
12,711 

4,259
23
357
4,639
10,688
12,297

326,574 
$        1,397 

253,344 
$        1,403 

230,561
$        1,261

13.0% 
453 
32,300 

13.5% 
384 
28,800 

14.2%
329
25,600

449,366 
467 
207,677 
242,311 
77.1 
$        3,891 
2,435 

444,851 
514 
225,997 
259,144 
72.7 
$        3,869 
2,557 

465,493
522
240,088
274,857
68.7
$        3,370
2,788

1,192 
901 
2,093 
8,954 
7,985 

1,637 
948 
2,585 
9,302 
8,089 

1,697
891
2,588
10,115
9,329

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JBI Segment

JBI segment revenue increased 14.9% to $3.07 billion in 2012, from $2.67 billion in 2011, primarily due to a 13.4% increase in load volume. 

Excluding fuel surcharge, revenues increased 13.8% in 2012 over the prior year.

Operating income in our JBI segment increased to $375 million in 2012, from $301 million in 2011, primarily due to volume growth, partially 

offset by increased purchased transportation cost and driver wages.

DCS Segment

DCS segment revenue increased 4.7% to $1.08 billion in 2012, from $1.03 billion in 2011. Revenue, excluding fuel surcharges, increased 3.9% 

in 2012 compared to 2011, primarily from new contracts awarded.

Operating income increased to $116 million in 2012, compared with $103 million in 2011. This increase was due to the increased revenue, 
transfer of assets to more proﬁtable accounts and increased gains on equipment dispositions, partially offset by increased driver wages, insurance 
and claims expense and employee health care costs. Additionally, our DCS segment operating income for 2011 was reduced by a charge related to 
a customer bankruptcy.

ICS Segment

ICS segment revenue grew 28.2% to $456 million in 2012, from $356 million in 2011. This increase in revenue was primarily due to an 

increase in load volume in both contractual and transactional business.

Operating income increased to $16 million in 2012, compared with $13 million in 2011. The increase was primarily due to increased revenues, 
partially offset by cost increases for additional headcount, branch network expansion and a single large cargo claim settlement. ICS gross proﬁt 
margin declined to 13% for 2012 from 13.5% for 2011 attributable to increased rates paid to third-party carriers, which was the result of a tighter 
supply of qualiﬁed purchased transportation providers.

JBT Segment

JBT segment revenue decreased 4% to $484 million in 2012, from $504 million in 2011. Excluding surcharges, revenue for 2012 decreased 
4.8% compared to 2011, on a 19% reduction in tractors year-over-year. Increases in customer rates and load volume were offset by a reduction in 
average length of haul and fewer paid empty miles.

JBT segment had operating income of $23 million in 2012 compared with $27 million in 2011. This decrease in operating income was 
primarily due to decreased revenue, increased independent contractor costs and fewer gains on equipment sales, partially offset by overall cost 
decreases related to the reduction in the segment’s tractor ﬂeet.

2011 COMPARED WITH 2010

Consolidated Operating Revenues

Our total consolidated operating revenues were $4.5 billion in 2011, a 19.3% increase over 2010. Signiﬁcantly higher fuel prices and increased 
load volume resulted in fuel surcharge (FSC) revenues of $849 million in 2011, compared with $516 million in 2010. If FSC revenues were 
excluded from both years, our 2011 revenue increased 12% over 2010. Revenue in all operating segments increased over 2010, with consolidated 
load growth and rate improvements contributing to the increase in revenues.

Consolidated Operating Expenses

Our 2011 consolidated operating expenses increased 18.5% from 2010, compared to the 19.3% increase in revenue year over year. This 
combination resulted in an improvement in our operating ratio to 90.2% from 90.8% in 2010. Rents and purchased transportation costs increased 
24.1% in 2011. This increase was the result of higher rates paid and the higher price of fuel, since fuel costs of third-party rail and truck carriers are 
included in purchased transportation expense, as well as an increase in load volume that increased services from these third-party rail and truck 
carriers. The total cost of salaries, wages and employee beneﬁts increased 10.0% in 2011 from 2010. This increase primarily related to increases 
in driver and other labor pay due to increased business demand. Additionally, we previously reactivated and increased certain compensation and 
beneﬁt programs, which contributed to the increase over the prior year.

Fuel and fuel taxes expense increased 34.9% in 2011, primarily due to a 30% higher fuel cost per gallon and higher load volume. We have fuel 
surcharge programs in place with the majority of our customers. These programs typically involve a speciﬁed computation based on the change in 
national, regional or local fuel prices. While these programs may incorporate fuel cost increases as frequently as weekly, most also reﬂect a speciﬁed 
miles-per-gallon factor and require a certain minimum change in fuel costs to trigger a change in fuel surcharge revenue. As a result, some of these 
programs have a time lag between when fuel costs change and when this change is reﬂected in revenues. Due to these programs, this lag negatively 
impacts operating income in times of rapidly increasing fuel costs and positively impacts operating income when fuel costs decrease rapidly.

It is not meaningful to compare the amount of fuel surcharge revenue or the change in fuel surcharge revenue between reporting periods to fuel 
and fuel taxes expense, or the change of fuel expense between periods, as a signiﬁcant portion of fuel costs is included in our payments to railroads, 
dray carriers and other third parties. These payments are classiﬁed as purchased transportation expense.

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Depreciation  and  amortization  expense  increased  8.6%  in  2011,  primarily  due  to  additions  to  our  container  and  chassis  ﬂeet  to  support 
additional business demand, as well as truck and tractor growth and trades. Operating supplies and expenses increased 5.2%, primarily due to toll 
and tire expenses related to increased activity and increased miles. Insurance and claims expense decreased 6.9% for 2011, primarily due to reduced 
accident severity. The 21.9% decrease in general and administrative expenses was primarily the result of a decrease in charitable contributions 
and an increase in gains from asset dispositions, partially offset by an increase in bad debt expense due to a customer bankruptcy and additional 
expense related to severance agreements for executive retirees. Net gains from sale of revenue equipment were $14 million in 2011, compared with 
$4 million in 2010.

Net interest expense for 2011 increased by 2.0% compared with 2010. This increase was primarily due to an increase in debt levels, partially 

offset by lower interest rates.

Our effective income tax rate was 38.2% in 2011 and 37.6% in 2010. The increase in 2011 was primarily related to an increase in state tax rates.

JBI Segment

JBI segment revenue increased 24.8% to $2.67 billion in 2011, from $2.14 billion in 2010, primarily due to a 16.1% increase in load volume 

and a 4.3% increase in rates.

Operating income in our JBI segment increased to $301 million in 2011, from $237 million in 2010, primarily due to volume growth and 

price increases.

DCS Segment

DCS segment revenue increased 13.7% to $1.03 billion in 2011, from $907 million in 2010. Revenue, excluding fuel surcharges, increased 

8.6% in 2011 compared to 2010, primarily due to an increase in productivity and truck count as a result of new contracts awarded.

Operating income increased to $103 million in 2011, compared with $83 million in 2010. This increase was due to reductions in insurance 

and claims costs, the transfer of assets to more proﬁtable accounts, improved cost controls and new contracts awarded.

ICS Segment

ICS segment revenue grew 22.3% to $356 million in 2011, from $291 million in 2010. This increase in revenue was primarily due to an 

increase in load volume and higher pricing in both contractual and transactional business and an increase in the cost of fuel.

Operating income increased to $13 million in 2011, compared with $9 million in 2010. The increase was primarily due to increased revenues, 

lower overhead costs, and operating leverage gained from a more experienced workforce.

JBT Segment

JBT segment revenue increased 5.1% to $504 million in 2011, from $479 million in 2010. Revenue, excluding fuel surcharges, remained 

relatively ﬂat in 2011 compared to 2010. Increases in rates were offset by a reduction in average tractor count and reduced load volume.

JBT segment had operating income of $27 million in 2011, compared with $19 million in 2010. This was mainly a result of increased rates and 

gains on equipment disposals, partially offset by increases in driver compensation during 2011.

LIQUIDITY AND CAPITAL RESOURCES

Net cash provided by operating activities was $548 million in 2012, $636 million in 2011, and $428 million in 2010. The decrease in 2012 
cash provided by operating activities relative to 2011 was primarily due to the increase in cash paid for income taxes during the current period when 
compared to 2011 due to the effect of timing differences caused by the use of 100% bonus depreciation within the Company’s 2011 corporate tax 
ﬁlings. Also contributing to the decrease was the timing of payments related to trade accounts payable and other accrued expenses.

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Cash  ﬂows  used  in  investing  activities  primarily  relate  to  additions  to  our  revenue  equipment  ﬂeet,  net  of  proceeds  from  disposals.  The 

decreased level of cash used for equipment additions during 2012 was due to the timing of these purchases.

Net cash used in ﬁnancing activities during 2012 decreased from 2011, primarily due to a decrease in our treasury stock repurchases, partially 

offset by payments on our long-term debt and revolving lines of credit and an increase in dividends paid.

Our dividend policy is subject to review and revision by the Board of Directors, and payments are dependent upon our ﬁnancial condition, 
earnings, capital requirements and other factors the Board of Directors may deem relevant. We paid a $0.12 per share quarterly dividend in 2010, a 
$0.13 per share quarterly dividend in 2011, and a $0.14 per share quarterly dividend in 2012. On December 7, 2012, we announced an increase and 
a pull-forward of our regular quarterly dividend typically paid in February of each calendar year. The increase announced was from $0.14 to $0.15, 
which was paid December 28, 2012, to stockholders of record on December 17, 2012. We do not expect to declare or pay a quarterly dividend in 
the ﬁrst quarter of 2013 and intend to resume paying quarterly cash dividends in the second quarter of 2013. However, no assurance can be given 
that future dividends will be paid.

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Liquidity

Our need for capital has typically resulted from the acquisition of containers and chassis, trucks, tractors and trailers required to support our 
growth and the replacement of older equipment. We are frequently able to accelerate or postpone a portion of equipment replacements depending 
on market conditions. We have, during the past few years, obtained capital through cash generated from operations, revolving lines of credit and 
long-term debt issuances. We have also periodically utilized capital and operating leases for revenue equipment.

At December 31, 2012, we were authorized to borrow up to $500 million under a senior revolving line of credit, which is supported by a credit 
agreement with a group of banks. This senior credit facility, which has a ﬁve-year term expiring in August 2016, allows us to request an increase 
in the total commitment by up to $250 million and to request a one-year extension of the maturity date. The applicable interest rate under this 
agreement is based on either the Prime Rate, the Federal Funds Rate or LIBOR, depending upon the speciﬁc type of borrowing, plus an applicable 
margin based on our credit rating and other fees. At December 31, 2012, we had $85.8 million outstanding at an average interest rate of 2.03% 
under this agreement.

Our senior term loan consists of an unsecured $200 million variable-rate agreement, which matures in March 2014. We are required to make 
an installment payment of $50 million in March 2013, with the remaining $150 million payable at maturity. The applicable interest rate under this 
agreement is based on either the Prime Rate, the Federal Funds Rate or LIBOR, depending upon the speciﬁc type of borrowing, plus an applicable 
margin based on our credit rating and other fees. At December 31, 2012, we had $200 million outstanding under this variable-rate senior term loan 
facility at an interest rate of 1.26%.

At December 31, 2012, our senior notes consist of two separate issuances. The ﬁrst is $150 million of 6.08% senior notes, which mature in July 
2014. We are required to make an installment payment of $50 million in July 2013, with the remainder due upon maturity. Interest payments are 
due semiannually in January and July of each year. The second is $250 million of 3.375% senior notes, which mature September 2015, with interest 
payments due semiannually in March and September of each year. We may redeem for cash some or all of the notes based on a redemption price 
set forth in the note indenture.

Our ﬁnancing arrangements require us to maintain certain covenants and ﬁnancial ratios. We were in compliance with all covenants and 

ﬁnancial ratios at December 31, 2012.

  We believe our liquid assets, cash generated from operations and various ﬁnancing arrangements will provide sufﬁcient funds for our operating 
and capital requirements for the foreseeable future. Our debt-to-equity ratio decreased from 2011, due to a decrease in debt levels and an increase 
in equity due to current-year earnings and a reduction in our treasury stock repurchases in 2012.

  We are currently committed to spend approximately $283 million, net of proceeds from sales or trade-ins during 2013, which is primarily 
related to containers and chassis and tractors.

Off-Balance Sheet Arrangements

Our only off-balance sheet arrangements are related to operating leases. As of December 31, 2012, we had approximately $21.1 million of 

obligations, primarily related to facilities leases.

Contractual Obligations and Commitments

The following table summarizes our expected obligations and commitments (in millions) as of December 31, 2012:

Operating leases 
Long-term debt obligations 
Interest payments on debt(1) 
Commitments to acquire revenue equipment and facilities 
        Total 

Total 
$       21.1 
685.3 
43.3 
283.1 
$  1,032.8 

2013 
$         7.8 
100.0 
20.0 
283.1 
$     410.9 

2014-2015 
$       13.0 
499.5 
22.1 
– 
$     534.6 

2016-2017 
$         0.3 
85.8 
1.2 
– 
$       87.3 

2018 and
thereafter
$           –
–
–
–
$           –

(1)   Interest payments on debt are based on the debt balance and applicable rate at December 31, 2012.

  We had standby letters of credit outstanding of approximately $5.0 million at December 31, 2012, that expire at various dates in ﬁscal year 
2013, which are related to certain operating agreements and our self-insured retention levels for casualty and workers’ compensation claims. We 
plan to renew these letters of credit in accordance with our third-party agreements. The table above excludes $29.8 million of liabilities related to 
uncertain tax positions, including interest and penalties, as we are unable to reasonably estimate the ultimate timing of settlement. See Note 6, 
Income Taxes, in the Notes to Consolidated Financial Statements for further discussion.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest rate risk can be quantiﬁed by measuring the ﬁnancial impact of a near-term adverse increase in short-term interest rates on variable-
rate debt outstanding. Of our total $685.3 million of debt, we had $285.8 million of variable-rate debt outstanding at December 31, 2012, under 
our revolving lines of credit and our senior term loan. These have variable interest rates, which are based on the Prime Rate, the Federal Funds 
Rate or LIBOR, depending upon the speciﬁc type of borrowing, plus an applicable margin based on our credit rating and other fees. Our earnings 
would be affected by changes in these short-term variable interest rates. At our current level of borrowing, a one percentage point increase in our 
applicable rate would reduce annual pretax earnings by $2.9 million. Our remaining debt is ﬁxed-rate debt, and therefore changes in market interest 
rates do not directly impact our interest expense. Periodically, we enter into derivative instruments in response to market interest rates; however, at 
December 31, 2012, we had no such derivative ﬁnancial instruments in place.

Although we conduct business in foreign countries, international operations are not material to our consolidated ﬁnancial position, results of 
operations or cash ﬂows. Additionally, foreign currency transaction gains and losses were not material to our results of operations for the year ended 
December 31, 2012. Accordingly, we are not currently subject to material foreign currency exchange rate risks from the effects that exchange rate 
movements of foreign currencies would have on our future costs or on future cash ﬂows we would receive from our foreign investment. To date, 
we have not entered into any foreign currency forward exchange contracts or other derivative ﬁnancial instruments to hedge the effects of adverse 
ﬂuctuations in foreign currency exchange rates.

The price and availability of diesel fuel are subject to ﬂuctuations due to changes in the level of global oil production, seasonality, weather and 
other market factors. Historically, we have been able to recover a majority of fuel-price increases from our customers in the form of fuel surcharges. 
We cannot predict the extent to which high fuel price levels will continue in the future or the extent to which fuel surcharges could be collected 
to offset such increases. As of December 31, 2012, we had no derivative ﬁnancial instruments to reduce our exposure to fuel-price ﬂuctuations.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Our Consolidated Financial Statements, Notes to Consolidated Financial Statements and reports thereon of our independent registered 

public accounting ﬁrm as speciﬁed by this Item are presented following Item 15 of this report and include:

Reports of Independent Registered Public Accounting Firm

Consolidated Balance Sheets as of December 31, 2012 and 2011

Consolidated Statements of Earnings for years ended December 31, 2012, 2011 and 2010

Consolidated Statements of Stockholders’ Equity for years ended December 31, 2012, 2011 and 2010

Consolidated Statements of Cash Flows for years ended December 31, 2012, 2011 and 2010

Notes to Consolidated Financial Statements

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON 
ACCOUNTING AND FINANCIAL DISCLOSURE

The information required by Regulation S-K, Item 304(a) has previously been reported and is hereby incorporated by reference from the Notice 
and Proxy Statement for Annual Meeting of Stockholders to be held April 25, 2013. There have been no disagreements with our accountants, as 
deﬁned in Regulation S-K, Item 304(b).

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures
  We maintain controls and procedures designed to ensure that we are able to collect the information we are required to disclose in the reports 
we ﬁle with the SEC, and to process, summarize and disclose this information within the time periods speciﬁed in the SEC rules. Based on an 
evaluation of our disclosure controls and procedures, as of the end of the period covered by this report, and conducted by our management, with 
the participation of our Chief Executive Ofﬁcer and Chief Financial Ofﬁcer, the Chief Executive Ofﬁcer and Chief Financial Ofﬁcer believe that 
these controls and procedures are effective to ensure that we are able to collect, process and disclose the information we are required to disclose in 
our reports ﬁled with the SEC within the required time periods.

The certiﬁcations of our Chief Executive Ofﬁcer and Chief Financial Ofﬁcer required under Section 302 of the Sarbanes-Oxley Act have been 

ﬁled as Exhibits 31.1 and 31.2 to this report.

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61

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Management’s Report on Internal Control Over Financial Reporting

Our  management  is  responsible  for  establishing  and  maintaining  effective  internal  control  over  ﬁnancial  reporting  as  deﬁned  in  Rules 
13a-15(f) under the Securities Exchange Act of 1934. Our internal control over ﬁnancial reporting is designed to provide reasonable assurance to 
our management and Board of Directors regarding the preparation and fair presentation of published ﬁnancial statements.

Because of its inherent limitation, internal control over ﬁnancial reporting may not prevent or detect misstatements. Therefore, even those 

systems determined to be effective can provide only reasonable assurance with respect to ﬁnancial statement preparation and presentation.

  Management assessed the effectiveness of our internal control over ﬁnancial reporting as of December 31, 2012. In making this assessment, 
management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control – 
Integrated Framework. Based on our assessment, we believe that as of December 31, 2012, our internal control over ﬁnancial reporting is effective 
based on those criteria.

The effectiveness of internal control over ﬁnancial reporting as of December 31, 2012, has been audited by Ernst & Young LLP, an independent 
registered public accounting ﬁrm that also audited our Consolidated Financial Statements. Ernst & Young LLP’s report on internal control over 
ﬁnancial reporting is included herein.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over ﬁnancial reporting during the fourth quarter ended December 31, 2012, that has 

materially affected, or is reasonably likely to materially affect, our internal control over ﬁnancial reporting.

ITEM 9B. OTHER INFORMATION
None.

PART III

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Directors

The schedule of directors is hereby incorporated by reference from the Notice and Proxy Statement for Annual Meeting of Stockholders to 

be held April 25, 2013.

Executive Ofﬁcers

The  schedule  of  executive  ofﬁcers  is  hereby  incorporated  by  reference  from  the  Notice  and  Proxy  Statement  for  Annual  Meeting  of 

Stockholders to be held April 25, 2013.

Code of Ethics
  We have adopted a code of ethics that applies to our principal executive ofﬁcer, principal accounting ofﬁcer, and all other ofﬁcers, employees 
and directors. Our code of ethics is available on our Internet website at www.jbhunt.com. If we make substantive amendments to this code of ethics 
or grant any waiver, including any implicit waiver, we will disclose the nature of such amendment or waiver on our website or in a report on Form 
8-K within four days of such amendment or waiver.

Corporate Governance

In complying with the rules and regulations required by the Sarbanes-Oxley Act of 2002, NASDAQ, Public Company Accounting Oversight 
Board (PCAOB) and others, we have attempted to do so in a manner that clearly meets legal requirements, but does not create a bureaucracy 
of forms, checklists and other inefﬁcient or expensive procedures. We have adopted a code of conduct, code of ethics, whistleblower policy and 
charters for all of our Board of Director Committees and other formal policies and procedures. Most of these items are available on our Company 
website, www.jbhunt.com. If we make signiﬁcant amendments to our code of ethics or whistleblower policy, or grant any waivers to these items, we 
will disclose such amendments or waivers on our website or in a report on Form 8-K within four days of such action.

Audit Committee

The information required by Regulation S-K, Item 407(d) is hereby incorporated by reference from the Notice and Proxy Statement for 

Annual Meeting of Stockholders to be held April 25, 2013.

ITEM 11. EXECUTIVE COMPENSATION

The information required for Item 11 is hereby incorporated by reference from the Notice and Proxy Statement for Annual Meeting of 

Stockholders to be held April 25, 2013.

62

 
 
 
 
 
 
 
 
 
 
 
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND 
MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required for Item 12 is hereby incorporated by reference from the Notice and Proxy Statement for Annual Meeting of 

Stockholders to be held April 25, 2013.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND 
DIRECTOR INDEPENDENCE

The information required for Item 13 is hereby incorporated by reference from the Notice and Proxy Statement for Annual Meeting of 

Stockholders to be held April 25, 2013.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required for Item 14 is hereby incorporated by reference from the Notice and Proxy Statement for Annual Meeting of 

Stockholders to be held April 25, 2013.

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(A)  Financial Statements, Financial Statement Schedules and Exhibits:

(1)  Financial Statements
        The ﬁnancial statements included in Item 8 above are ﬁled as part of this annual report.

(2)  Financial Statement Schedules
        Schedule II – Valuation and Qualifying Accounts (in millions)

Allowance for Doubtful Accounts 
and Revenue Adjustments 
for the years Ended: 
December 31, 2010 
December 31, 2011 
December 31, 2012 

Balance at 
Beginning of 
Year 
$ 6.0 
6.0 
6.7 

Charged to 
Expense / Against 
Revenue 
$ 9.5 
12.6 
11.4 

Write-Offs, 
Net of 
Recoveries 
$ (9.5) 
(11.9) 
(11.5) 

Balance at
End of
Year
$ 6.0
6.7
6.6

        All other schedules have been omitted either because they are not applicable or because the required information is included in our 

Consolidated Financial Statements or the notes thereto.

(3)  Exhibits
        The response to this portion of Item 15 is submitted as a separate section of this report on Form 10-K (“Exhibit Index”).

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63

 
 
 
 
 
 
 
 
 
 
 
 
SIGNATURES

Pursuant to the requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be 

signed on its behalf by the undersigned thereunto duly authorized, in the City of Lowell, Arkansas, on the 22nd day of February, 2013.

J.B. Hunt TRANSPORT SERVICES, INC.
(Registrant)

By: 

/s/ John N. Roberts, III                 
John N. Roberts, III
President and Chief Executive Ofﬁcer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on the 22nd 

day of February, 2013, on behalf of the registrant and in the capacities indicated.

President and Chief Executive Ofﬁcer, Member
of the Board of Directors
(Principal Executive Ofﬁcer)

Executive Vice President, Finance and
Administration, Chief Financial Ofﬁcer and
Corporate Secretary
(Principal Accounting Ofﬁcer)

Chairman of the Board of Directors

Member of the Board of Directors
(Lead Director)

Member of the Board of Directors

Member of the Board of Directors

Member of the Board of Directors

Member of the Board of Directors

Member of the Board of Directors

Member of the Board of Directors

Member of the Board of Directors

Member of the Board of Directors

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/s/ John N. Roberts, III 
John N. Roberts, III 

/s/ David G. Mee 
  David G. Mee 

/s/ Kirk Thompson 
  Kirk Thompson

/s/ James L. Robo 
James L. Robo 

/s/ Douglas G. Duncan 
  Douglas G. Duncan

/s/ Francesca M. Edwardson 
  Francesca M. Edwardson

/s/ Wayne Garrison 
  Wayne Garrison

/s/ Sharilyn S. Gasaway 
  Sharilyn S. Gasaway

/s/ Gary C. George 
  Gary C. George

/s/ J. Bryan Hunt, Jr. 
J. Bryan Hunt, Jr.

/s/ Coleman H. Peterson 
  Coleman H. Peterson

/s/ John A. White 
John A. White

64

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EXHIBIT INDEX

Exhibit
Number  Description 

3.1 

 Amended and Restated Articles of Incorporation of J.B. Hunt Transport Services, Inc. dated May 19, 1988 (incorporated by reference 
from Exhibit 3.1 of the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2005, ﬁled April 29, 2005)

3.2 

 Restated  Bylaws  of  J.B.  Hunt  Transport  Services,  Inc.  dated  February  4,  2010  (incorporated  by  reference  from  Exhibit  3.0  of  the 
Company’s current report on Form 8-K, ﬁled February 10, 2010)

10.1 

 Amended and Restated Employee Retirement Plan (incorporated by reference from Exhibit 99 of the Company’s Form S-8, ﬁled 
December 30, 1994)

10.2 

 Second Amended and Restated Management Incentive Plan (incorporated by reference from Exhibit 10.1 of the Company’s Quarterly 
Report on Form 10-Q for the period ended June 30, 2012, ﬁled July 31, 2012)

10.3 

 Summary of Compensation Arrangements with Named Executive Ofﬁcers

10.4 

 Senior  Revolving  Credit  Facility  Agreement  (incorporated  by  reference  from  Exhibit  10.2  of  the  Company’s  current  report  on 
Form 8-K, ﬁled March 30, 2007)

10.5 

 Term Loan Agreement (incorporated by reference from Exhibits 10.1 through 10.4 of the Company’s current report on Form 8-K, ﬁled 
October 5, 2006)

10.6 

 Note  Purchase  Agreement  (incorporated  by  reference  from  Exhibit  10.1  of  the  Company’s  current  report  on  Form  8-K,  ﬁled 
March 30, 2007)

10.7 

 Master Note Purchase Agreement (incorporated by reference from Exhibit 10.1 of the Company’s current report on Form 8-K, ﬁled 
July 30, 2007)

10.8 

 First  Supplemental  Indenture  (incorporated  by  reference  from  Exhibit  4.2  of  the  Company’s  current  report  on  Form  8-K,  ﬁled 
September 21, 2010)

10.9 

 Senior  Term  Loan  Agreement  (incorporated  by  reference  from  Exhibit  10.1  of  the  Company’s  current  report  on  Form  8-K,  ﬁled 
March 29, 2011)

10.10 

 Credit Agreement (incorporated by reference from Exhibit 10.1 of the Company’s current report on Form 8-K, ﬁled August 18, 2011)

21 

 Subsidiaries of J.B. Hunt Transport Services, Inc.

23.1 

 Consent of Ernst & Young LLP

31.1 

 Rule 13a-14(a)/15d-14(a) Certiﬁcation

31.2 

 Rule 13a-14(a)/15d-14(a) Certiﬁcation

32 

 Section 1350 Certiﬁcation

  101.INS  XBRL Instance Document

 101.SCH  XBRL Taxonomy Extension Schema Document

 101.CAL  XBRL Taxonomy Extension Calculation Linkbase Document

 101.DEF  XBRL Taxonomy Extension Deﬁnition Linkbase Document

 101.LAB  XBRL Taxonomy Extension Label Linkbase Document

 101.PRE  XBRL Taxonomy Extension Presentation Linkbase Document

65

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INDEX TO CONSOLIDATED FINANCIAL INFORMATION

Management’s Report on Internal Control Over Financial Reporting 

Report of Independent Registered Public Accounting Firm on Consolidated Financial Statements 

Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting 

Consolidated Balance Sheets as of December 31, 2012 and 2011 

Consolidated Statements of Earnings for years ended December 31, 2012, 2011 and 2010 

Consolidated Statements of Stockholders’ Equity for years ended December 31, 2012, 2011 and 2010 

Consolidated Statements of Cash Flows for years ended December 31, 2012, 2011 and 2010 

Notes to Consolidated Financial Statements 

 PAGE

67

68

69

70

71

72

73

74

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66

 
 
 
 
 
 
 
 
 
 
 
MANAGEMENT’S REPORT ON INTERNAL CONTROL  
OVER FINANCIAL REPORTING

  We are responsible for the preparation, integrity and fair presentation of our Consolidated Financial Statements and related information 
appearing in this report. We take these responsibilities very seriously and are committed to maintaining controls and procedures that are designed to 
ensure that we collect the information we are required to disclose in our reports to the SEC and to process, summarize and disclose this information 
within the time periods speciﬁed by the SEC.

Based on an evaluation of our disclosure controls and procedures, as of the end of the period covered by this report, and conducted by our 
management, with the participation of our Chief Executive Ofﬁcer and Chief Financial Ofﬁcer, we believe that our controls and procedures are 
effective to ensure that we are able to collect, process and disclose the information we are required to disclose in our reports ﬁled with the SEC 
within the required time periods.

  We are responsible for establishing and maintaining effective internal control over ﬁnancial reporting as deﬁned in Rules 13a-15(f) under the 
Securities Exchange Act of 1934. Our internal control over ﬁnancial reporting is designed to provide reasonable assurance to our management and 
Board of Directors regarding the preparation and fair presentation of published ﬁnancial statements. Because of its inherent limitation, internal 
control over ﬁnancial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide 
only reasonable assurance with respect to ﬁnancial statement preparation and presentation. We assessed the effectiveness of our internal control 
over ﬁnancial  reporting  as of December 31, 2012.  In making this assessment, we used the criteria set forth by the Committee of Sponsoring 
Organizations of the Treadway Commission (COSO) in Internal Control – Integrated Framework. Based on our assessment, we believe that as of 
December 31, 2012, our internal control over ﬁnancial reporting is effective based on those criteria.

The effectiveness of internal control over ﬁnancial reporting as of December 31, 2012, has been audited by Ernst & Young LLP, an independent 
registered public accounting ﬁrm that also audited our Consolidated Financial Statements. Ernst & Young LLP’s report on internal control over 
ﬁnancial reporting is included herein.

/s/ John N. Roberts, III                               

John N. Roberts, III 

  President and Chief Executive Ofﬁcer 

(Principal Executive Ofﬁcer) 

/s/ David G. Mee                             

David G. Mee
Executive Vice President, Finance and
Administration, Chief Financial Ofﬁcer
(Principal Accounting Ofﬁcer)

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67

 
 
 
 
 
 
 
 
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders of J.B. Hunt Transport Services, Inc.

  We have audited the accompanying consolidated balance sheets of J.B. Hunt Transport Services, Inc. and subsidiaries as of December 31, 2012 
and 2011, and the related consolidated statements of earnings, stockholders’ equity and cash ﬂows for each of the three years in the period ended 
December 31, 2012. Our audits also included the ﬁnancial statement schedule listed in the Index at Item 15(a). These ﬁnancial statements are the 
responsibility of the Company’s management. Our responsibility is to express an opinion on these ﬁnancial statements based on our audits.

  We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those 
standards require that we plan and perform the audit to obtain reasonable assurance about whether the ﬁnancial statements are free of material 
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the ﬁnancial statements. An audit 
also includes assessing the accounting principles used and signiﬁcant estimates made by management, as well as evaluating the overall ﬁnancial 
statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the ﬁnancial statements referred to above present fairly, in all material respects, the consolidated ﬁnancial position of J.B. Hunt 
Transport Services, Inc. and subsidiaries at December 31, 2012 and 2011, and the consolidated results of their operations and their cash ﬂows for 
each of the three years in the period ended December 31, 2012, in conformity with U.S. generally accepted accounting principles. Also, in our 
opinion, the related ﬁnancial statement schedule, when considered in relation to the basic ﬁnancial statements taken as a whole, presents fairly in 
all material respects the information set forth herein.

  We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), J.B. Hunt 
Transport  Services,  Inc.  and  subsidiaries’  internal  control  over  ﬁnancial  reporting  as  of  December  31,  2012,  based  on  criteria  established  in 
Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated 
February 22, 2013 expressed an unqualiﬁed opinion thereon.

/s/ Ernst & Young LLP                             

Rogers, Arkansas
February 22, 2013

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68

 
 
 
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders of J.B. Hunt Transport Services, Inc.

  We have audited J.B. Hunt Transport Services, Inc. and subsidiaries’ internal control over ﬁnancial reporting as of December 31, 2012, based 
on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission 
(the COSO criteria). J.B. Hunt Transport Services, Inc. and subsidiaries’ management is responsible for maintaining effective internal control 
over ﬁnancial reporting, and for its assessment of the effectiveness of internal control over ﬁnancial reporting included in the accompanying 
“Management’s Report on Internal Control Over Financial Reporting”. Our responsibility is to express an opinion on the company’s internal 
control over ﬁnancial reporting based on our audit.

  We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those 
standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over ﬁnancial 
reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over ﬁnancial reporting, 
assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on 
the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a 
reasonable basis for our opinion.

A  company’s  internal  control  over  ﬁnancial  reporting  is  a  process  designed  to  provide  reasonable  assurance  regarding  the  reliability  of 
ﬁnancial reporting and the preparation of ﬁnancial statements for external purposes in accordance with generally accepted accounting principles. 
A company’s internal control over ﬁnancial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in 
reasonable detail, accurately and fairly reﬂect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that 
transactions are recorded as necessary to permit preparation of ﬁnancial statements in accordance with generally accepted accounting principles, 
and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the 
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the 
company’s assets that could have a material effect on the ﬁnancial statements.

Because of its inherent limitations, internal control over ﬁnancial reporting may not prevent or detect misstatements. Also, projections of any 
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that 
the degree of compliance with the policies or procedures may deteriorate.

In our opinion, J.B. Hunt Transport Services, Inc. and subsidiaries maintained, in all material respects, effective internal control over ﬁnancial 

reporting as of December 31, 2012, based on the COSO criteria.

  We  also  have  audited,  in  accordance  with  the  standards  of  the  Public  Company  Accounting  Oversight  Board  (United  States),  the 
consolidated balance sheets of J.B. Hunt Transport Services, Inc. and subsidiaries as of December 31, 2012 and 2011, and the related consolidated 
statements of earnings, stockholders’ equity, and cash ﬂows for each of the three years in the period ended December 31, 2012, and our report dated 
February 22, 2013 expressed an unqualiﬁed opinion thereon.

/s/ Ernst & Young LLP                             

Rogers, Arkansas
February 22, 2013

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69

 
 
 
 
 
 
J.B. HUNT TRANSPORT SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

December 31, 2012 and 2011
(in thousands, except share data)

Assets 
Current assets:
    Cash and cash equivalents 
    Trade accounts receivable, net 
    Inventories 
    Prepaid licenses and permits 
    Prepaid insurance 
    Deferred income taxes 
    Other current assets 
            Total current assets 
Property and equipment, at cost:
    Revenue and service equipment 
    Land 
    Structures and improvements 
    Furniture and office equipment 
            Total property and equipment 
    Less accumulated depreciation 
            Net property and equipment 
Other assets 
                Total assets 

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Liabilities and Stockholders’ Equity
Current liabilities:
    Current portion of long-term debt 
    Trade accounts payable 
    Claims accruals 
    Accrued payroll 
    Other accrued expenses 
    Deferred income taxes 
            Total current liabilities 
Long-term debt 
Other long-term liabilities 
Deferred income taxes 
            Total liabilities 
Commitments and contingencies (Note 9)
Stockholders’ equity:
    Preferred stock, $100 par value. 10 million shares authorized; none outstanding 
    Common stock, $.01 par value. 1 billion shares authorized;
        (167,099,432 shares issued at December 31, 2012 and 2011, of which 117,529,307 shares
        and 116,932,448 shares were outstanding at December 31, 2012 and 2011, respectively) 
    Additional paid-in capital 
    Retained earnings 
    Treasury stock, at cost (49,570,125 shares at December 31, 2012,
        and 50,166,984 shares at December 31, 2011) 
            Total stockholders’ equity 

2012 

2011

$         5,589 
466,011 
23,065 
17,632 
32,474 
– 
9,761 
554,532 

2,571,083 
36,482 
135,974 
161,167 
2,904,706 
1,019,232 
1,885,474 
24,635 
$  2,464,641 

$     100,000 
266,722 
47,442 
70,647 
17,199 
750 
502,760 
585,347 
53,050 
531,624 
1,672,781 

$         5,450
411,479
20,932
16,735
29,649
5,136
24,161
513,542

2,344,600
29,246
132,202
152,095
2,658,143
931,273
1,726,870
26,920
$  2,267,332

$       50,000
251,625
42,364
77,107
17,419
–
438,515
699,177
45,382
516,715
1,699,789

– 

–

1,671 
207,073 
1,985,213 

1,671
192,470
1,758,290

(1,402,097) 
791,860 

(1,384,888)
567,543

                Total liabilities and stockholders’ equity 

$  2,464,641 

$  2,267,332

See Notes to Consolidated Financial Statements.

70

 
 
J.B. HUNT TRANSPORT SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS

Years Ended December 31, 2012, 2011 and 2010
(in thousands, except per share amounts)

Operating revenues, excluding fuel surcharge revenues 

$  4,058,165 

$  3,677,679 

$  3,277,218

2012 

2011 

2010

Fuel surcharge revenues 

            Total operating revenues 

Operating expenses:

    Rents and purchased transportation 

    Salaries, wages and employee beneﬁts 

    Fuel and fuel taxes 

    Depreciation and amortization 

    Operating supplies and expenses 

    Insurance and claims 

    General and administrative expenses, net of asset dispositions 

    Operating taxes and licenses 

    Communication and utilities 

            Total operating expenses 

            Operating income 

Interest income 

Interest expense 

            Earnings before income taxes 

Income taxes 

            Net earnings 

Weighted average basic shares outstanding 

            Basic earnings per share 

Weighted average diluted shares outstanding 

            Diluted earnings per share 

Dividends declared per common share 

See Notes to Consolidated Financial Statements.

996,815 

5,054,980 

2,485,635 

1,037,526 

465,874 

229,166 

178,610 

53,832 

27,231 

29,461 

17,445 

4,524,780 

530,200 

1 

25,560 

504,641 

194,287 

849,163 

4,526,842 

2,122,811 

1,001,953 

463,597 

213,943 

160,425 

44,929 

28,900 

27,871 

18,180 

4,082,609 

444,233 

8 

28,508 

415,733 

158,727 

516,267

3,793,485

1,711,204

911,028

343,700

197,062

152,500

48,280

37,017

26,895

18,174

3,445,860

347,625

75

28,006

319,694

120,077

$     310,354 

$     257,006 

$     199,617

117,572 

119,158 

124,712

$           2.64 

$           2.16 

$           1.60

120,022 

$           2.59 

$           0.71 

121,922 

$           2.11 

$           0.52 

127,767

$           1.56

$           0.48

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J.B. HUNT TRANSPORT SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Years Ended December 31, 2012, 2011 and 2010
(in thousands, except per share amounts)

Balances at December 31, 2009 
     Comprehensive income:
         Net earnings 
     Cash dividend declared and paid ($0.48 per share) 
     Tax beneﬁt of stock options exercised 
     Purchase of treasury shares 
     Stock compensation 
     Stock option exercises and restricted
         share issuances, net of stock
         repurchased for payroll taxes 

Balances at December 31, 2010 
     Comprehensive income:
         Net earnings 
     Cash dividend declared and paid ($0.52 per share) 
     Tax beneﬁt of stock options exercised 
     Purchase of treasury shares 
     Stock compensation 
     Stock option exercises and restricted
         share issuances, net of stock
         repurchased for payroll taxes 

Balances at December 31, 2011 
     Comprehensive income:
         Net earnings 
     Cash dividend declared and paid ($0.71 per share) 
     Tax beneﬁt of stock options exercised 
     Purchase of treasury shares 
     Stock compensation 
     Stock option exercises and restricted
         share issuances, net of stock
         repurchased for payroll taxes 

Common 
Stock 
$  1,671 

– 
– 
– 
– 
– 

– 

Additional
Paid-in 
Capital 
$  176,009 

– 
– 
12,154 
– 
21,397 

Retained 
Earnings 
$  1,423,820 

Treasury 
Stock 
$     (957,647) 

Stockholders’
Equity
$  643,853

199,617 
(59,910) 
– 
– 
– 

– 
– 
– 
(250,892) 
– 

199,617
(59,910)
12,154
(250,892)
21,397

(28,574) 

– 

35,376 

6,802

$  1,671 

$  180,986 

$  1,563,527 

$  (1,173,163) 

$  573,021

– 
– 
– 
– 
– 

– 

– 
– 
15,562 
– 
26,841 

257,006 
(62,243) 
– 
– 
– 

– 
– 
– 
(246,406) 
– 

257,006
(62,243)
15,562
(246,406)
26,841

(30,919) 

– 

34,681 

3,762

$  1,671 

$  192,470 

$  1,758,290 

$  (1,384,888) 

$  567,543

– 
– 
– 
– 
– 

– 

– 
– 
20,090 
– 
29,715 

310,354 
(83,431) 
– 
– 
– 

– 
– 
– 
(50,000) 
– 

310,354
(83,431)
20,090
(50,000)
29,715

(35,202) 

– 

32,791 

(2,411)

Balances at December 31, 2012 

$  1,671 

$  207,073 

$  1,985,213 

$  (1,402,097) 

$  791,860

See Notes to Consolidated Financial Statements.

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J.B. HUNT TRANSPORT SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31, 2012, 2011 and 2010
(in thousands)

Cash flows from operating activities:
    Net earnings 
    Adjustments to reconcile net earnings to
        net cash provided by operating activities:
          Depreciation and amortization 
          Share-based compensation 
          Gain on sale of revenue equipment and other 
          Impairment on assets held for sale 
          Provision for deferred income taxes 
          Changes in operating assets and liabilities:
              Trade accounts receivable 
              Income taxes receivable or payable 
              Other assets 
              Trade accounts payable 
              Claims accruals 
              Accrued payroll and other accrued expenses 
                  Net cash provided by operating activities 

Cash flows from investing activities:
    Additions to property and equipment 
    Proceeds from sale of equipment 
    Change in other assets 
                  Net cash used in investing activities 

Cash flows from financing activities:
    Proceeds from issuances of long-term debt 
    Payments on long-term debt 
    Proceeds from revolving lines of credit and other 
    Payments on revolving lines of credit and other 
    Purchase of treasury stock 
    Stock option exercises and other 
    Tax benefit of stock options exercised 
    Dividends paid 
                  Net cash used in financing activities 
Net increase/(decrease) in cash and cash equivalents 
Cash and cash equivalents at beginning of year 
Cash and cash equivalents at end of year 

Supplemental disclosure of cash flow information:
    Cash paid during the year for:
        Interest 
        Income taxes 

See Notes to Consolidated Financial Statements.

2012 

2011 

2010

$    310,354 

$    257,006 

$    199,617

229,166 
29,715 
(16,845) 
– 
20,795 

(54,532) 
11,868 
(4,826) 
15,097 
5,078 
2,174 
548,044 

(439,494) 
69,815 
85 
(369,594) 

– 
(50,000) 
1,605,674 
(1,618,233) 
(50,000) 
(2,411) 
20,090 
(83,431) 
(178,311) 
139 
5,450 
$        5,589 

213,943 
26,841 
(14,109) 
– 
117,711 

(60,292) 
9,045 
1,298 
56,179 
9,722 
18,348 
635,692 

(502,282) 
56,413 
340 
(445,529) 

200,000 
(200,000) 
1,097,657 
(1,000,696) 
(246,406) 
3,762 
15,562 
(62,243) 
(192,364) 
(2,201) 
7,651 
$        5,450 

197,062
21,397
(1,724)
180
40,101

(40,848)
(21,433)
(9,426)
1,883
14,096
27,173
428,078

(262,449)
36,517
(84)
(226,016)

249,207
–
1,058,805
(1,218,420)
(250,892)
6,802
12,154
(59,910)
(202,254)
(192)
7,843
$        7,651

$      27,070 
$    132,096 

$      30,733 
$      16,377 

$      25,548
$      88,717

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.  Business

J.B. Hunt Transport Services, Inc. is one of the largest surface transportation and delivery service companies in North America. We operate 
four distinct, but complementary, business segments and provide a wide range of general and speciﬁcally tailored freight and logistics services to our 
customers. We generate revenues from the actual movement of freight from shippers to consignees, customized labor and delivery services, and from 
serving as a logistics provider by offering or arranging for others to provide the transportation service. Unless otherwise indicated by the context, 
“we,” “us,” “our” and “JBHT” refer to J.B. Hunt Transport Services, Inc. and its consolidated subsidiaries.

2.  Summary of Signiﬁcant Accounting Policies

Basis of Consolidation

Our Consolidated Financial Statements include all of our wholly owned subsidiaries. Intercompany balances and transactions have been 
eliminated in consolidation. J.B. Hunt Transport Services, Inc. is a parent-level holding company with no signiﬁcant assets or operations. J.B. Hunt 
Transport, Inc. is a wholly owned subsidiary of J.B. Hunt Transport Services, Inc. and is the primary operating subsidiary. All other subsidiaries of 
J.B. Hunt Transport Services, Inc. are minor.

Use of Estimates

The Consolidated Financial Statements contained in this report have been prepared in conformity with accounting principles generally 
accepted in the United States of America. The preparation of these statements requires us to make estimates and assumptions that directly affect 
the amounts reported in such statements and accompanying notes. We evaluate these estimates on an ongoing basis utilizing historical experience, 
consulting with experts and using other methods we consider reasonable in the particular circumstances. Nevertheless, our actual results may differ 
signiﬁcantly from our estimates.

  We believe certain accounting policies and estimates are of more signiﬁcance in our ﬁnancial statement preparation process than others. 
We believe the most critical accounting policies and estimates include the economic useful lives and salvage values of our assets, provisions for 
uncollectible accounts receivable, estimates of exposures under our insurance and claims policies, and estimates for taxes. To the extent that actual, 
ﬁnal outcomes are different from our estimates, or that additional facts and circumstances cause us to revise our estimates, our earnings during that 
accounting period will be affected.

Cash and Cash Equivalents

Cash in excess of current operating requirements is invested in short-term, highly liquid investments. We consider all highly liquid investments 

purchased with original maturities of three months or less to be cash equivalents.

Accounts Receivable and Allowance

Our trade accounts receivable includes accounts receivable reduced by an allowance for uncollectible accounts and revenue adjustments. 
Receivables  are  recorded  at  amounts  billed  to  customers  when  loads  are  delivered  or  services  are  performed.  The  allowance  for  uncollectible 
accounts and revenue adjustments is based on historical experience, as well as any known trends or uncertainties related to customer billing and 
account collectability. The adequacy of our allowance is reviewed quarterly. Balances are charged against the allowance when it is determined 
the receivable will not be recovered. The allowance for uncollectible accounts and revenue adjustments was $6.6 million and $6.7 million at 
December 31, 2012 and 2011, respectively.

Inventory

Our inventories consist primarily of revenue equipment parts, tires, supplies and fuel and are valued using the lower of average cost or market.

Investments in Marketable Equity Securities

Our investments consist of marketable equity securities stated at fair value and are designated as either trading securities or available-for-
sale securities at the time of purchase based upon the intended holding period. Changes in the fair value of our trading securities are recognized 
currently in “general and administrative expenses, net of asset dispositions” in our Consolidated Statements of Earnings. Changes in the fair value 
of our available-for-sale securities are recognized in “accumulated other comprehensive income” on our Consolidated Balance Sheets, unless we 
determine that an unrealized loss is other-than-temporary. If we determine that an unrealized loss is other-than-temporary, we recognize the loss in 
earnings. Cost basis is determined using average cost.

At  December  31,  2012  and  2011,  we  had  no  available-for-sale  securities.  See  Note  7,  Employee  Beneﬁt  Plans,  for  a  discussion  of  our 

trading securities.

Property and Equipment

Depreciation of property and equipment is calculated on the straight-line method over the estimated useful lives of 4 to 10 years for tractors and 
7 to 20 years for trailing equipment, 10 to 40 years for structures and improvements, and 3 to 10 years for furniture and ofﬁce equipment. Salvage values 
are typically 10% to 30% of original cost for tractors and trailing equipment and reﬂect any agreements with tractor suppliers for residual or trade-in 
values for certain new equipment. We capitalize tires placed in service on new revenue equipment as a part of the equipment cost. Replacement tires 
and costs for recapping tires are expensed at the time the tires are placed in service. Gains and losses on the sale or other disposition of equipment 
are recognized at the time of the disposition and are classiﬁed in general and administrative expenses, net of asset dispositions.

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Revenue Recognition
  We recognize revenue based on relative transit time in each reporting period and as other services are provided, with expenses recognized 
as incurred. Accordingly, a portion of the total revenue that will be billed to the customer once a load is delivered is recognized in each reporting 
period based on the percentage of the freight pickup and delivery service that has been completed at the end of the reporting period.

  We record revenues on the gross basis at amounts charged to our customers because we are the primary obligor, we are a principal in the 
transaction, we invoice our customers and retain all credit risks, and we maintain discretion over pricing. Additionally, we are responsible for 
selection of third-party transportation providers to the extent used to satisfy customer freight requirements.

Derivative Instruments
  We periodically utilize derivative instruments to manage exposure to changes in interest rates. At inception of a derivative contract, we 
document relationships between derivative instruments and hedged items, as well as our risk-management objective and strategy for undertaking 
various derivative transactions, and assess hedge effectiveness. If it is determined that a derivative is not highly effective as a hedge, or if a derivative 
ceases to be a highly effective hedge, we discontinue hedge accounting prospectively. We had no derivative instruments in place at December 31, 
2012 and 2011.

Income Taxes

Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences 
attributable to differences between the ﬁnancial statement carrying amounts of existing assets and liabilities and their respective tax bases and 
operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable 
income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of 
a change in tax rates is recognized as income or expense in the period that includes the enactment date.

Earnings Per Share
  We compute basic earnings per share by dividing net earnings available to common stockholders by the actual weighted average number of 
common shares outstanding for the reporting period. Diluted earnings per share reﬂect the potential dilution that could occur if holders of unvested 
restricted and performance share units or options exercised or converted their holdings into common stock. Outstanding unvested restricted share 
units and stock options represent the dilutive effects on weighted average shares. A reconciliation of the number of shares used in computing basic 
and diluted earnings per share is shown below (in thousands):

Weighted average shares outstanding – basic 
Effect of common stock equivalents 
Weighted average shares outstanding – diluted 

Concentrations of Credit Risk

2012 
117,572 
2,450 
120,022 

Years ended December 31,
2011 
119,158 
2,764 
121,922 

2010
124,712
3,055
127,767

Financial instruments, which potentially subject us to concentrations of credit risk, include trade receivables. For the years ended December 31, 
2012, 2011 and 2010, our top 10 customers, based on revenue, accounted for approximately 30%, 32% and 34%, respectively, of our total revenue. 
Our top 10 customers, based on revenue, accounted for approximately 26% and 27% of our total trade accounts receivable at December 31, 2012 
and 2011, respectively. We had no individual customers with revenues greater than 10% of total revenues.

Share-based Compensation
  We  have  share-based  compensation  plans  covering  certain  employees,  including  ofﬁcers  and  directors.  We  account  for  share-based 
compensation  utilizing  the  fair  value  recognition  provisions  of  current  accounting  standards  for  share-based  payments.  We  currently  utilize 
restricted share units, performance share units and nonstatutory stock options. Issuances of our stock upon restricted share unit and performance 
share unit vesting or share option exercise are made from treasury stock. Our restricted share unit and performance share unit awards may include 
both graded-vesting and cliff-vesting awards and therefore vest in increments during the requisite service period or at the end of the requisite service 
period, as appropriate for each type of vesting. We recognize compensation expense on a straight-line basis over the requisite service periods within 
each award.

Impairment of Long-Lived Assets and Assets Held for Sale
  We continually evaluate the carrying value of our assets for events or changes in circumstances that indicate the carrying value may not be 
recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to future net cash ﬂows expected 
to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the 
carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair 
value less cost to sell.

All impairment charges are included in “general and administrative expenses, net of asset dispositions” in our Consolidated Statements of 

Earnings and are reﬂected in our applicable business segments’ ﬁnal results. We had no active plans or assets held for sale at December 31, 2012.

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Claims Accruals
  We purchase insurance coverage for a portion of expenses related to employee injuries, vehicular collisions, accidents and cargo damage. We 
are substantially self-insured for loss of and damage to our owned and leased revenue equipment. Certain insurance arrangements include a level of 
self-insurance (deductible) coverage applicable to each claim. We have umbrella policies to limit our exposure to catastrophic claim costs that are 
completely insured.

The amounts of self-insurance change from time to time based on measurement dates, policy expiration dates and claim type. For 2010 
through 2012, we were self-insured for $500,000 per occurrence for personal injury and property damage and fully insured for substantially all 
workers’ compensation claims. We have policies in place for 2013 with substantially the same terms as our 2012 policies for personal injury, workers’ 
compensation, cargo and property damage, with the exception of adding a $100,000 deductible per claim for workers’ compensation.

Our claims accrual policy for all self-insured claims is to recognize a liability at the time of the incident based on our analysis of the nature 
and severity of the claims and analyses provided by third-party claims administrators, as well as legal, economic and regulatory factors. Our safety 
and claims personnel work directly with representatives from the insurance companies to continually update the estimated cost of each claim. 
The ultimate cost of a claim develops over time as additional information regarding the nature, timing and extent of damages claimed becomes 
available. Accordingly, we use an actuarial method to develop current claim information to derive an estimate of our ultimate claim liability. This 
process involves the use of loss-development factors based on our historical claims experience and includes a contractual premium adjustment 
factor, if applicable. In doing so, the recorded liability considers future claims growth and, if applicable, conversion to fully insured status and 
provides an allowance for incurred-but-not-reported claims. We do not discount our estimated losses. At December 31, 2012 and 2011, we had an 
accrual of approximately $38 million and $34 million, respectively, for estimated net claims. In addition, we are required to pay certain advanced 
deposits and monthly premiums. At December 31, 2012 and 2011, we had a prepaid insurance asset of approximately $35 million and $38 million, 
respectively, which represented prefunded claims and premiums.

3.  Financing Arrangements

Outstanding borrowings under our current ﬁnancing arrangements consist of the following (in millions):

Senior revolving line of credit 
Senior term loan 
Senior notes, net of unamortized discount 
Less current portion of long-term debt 
Total long-term debt 

December 31,

2012 
$    85.8 
200.0 
399.5 
(100.0) 
$  585.3 

2011
$    99.8
200.0
449.4
(50.0)
$  699.2

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Aggregate  maturities  of  long-term  debt  subsequent  to  December  31,  2012,  are  as  follows  (in  millions):  2013  –  $100.0;  2014  –  $250.0; 

2015 – $249.5; and 2016 – $85.8.

Senior Revolving Line of Credit

At December 31, 2012, we were authorized to borrow up to $500 million under a senior revolving line of credit, which is supported by a credit 
agreement with a group of banks. This senior credit facility, which has a ﬁve-year term expiring in August 2016, allows us to request an increase 
in the total commitment by up to $250 million and to request a one-year extension of the maturity date. The applicable interest rate under this 
agreement is based on either the Prime Rate, the Federal Funds Rate or LIBOR, depending upon the speciﬁc type of borrowing, plus an applicable 
margin based on our credit rating and other fees. At December 31, 2012, we had $85.8 million outstanding at an average interest rate of 2.03% 
under this agreement.

Senior Term Loan

Our senior term loan consists of an unsecured $200 million variable-rate agreement, which matures in March 2014. We are required to make 
an installment payment of $50 million in March 2013, with the remaining $150 million payable at maturity. The applicable interest rate under this 
agreement is based on either the Prime Rate, the Federal Funds Rate or LIBOR, depending upon the speciﬁc type of borrowing, plus an applicable 
margin based on our credit rating and other fees. At December 31, 2012, we had $200 million outstanding under this variable-rate senior term loan 
facility at an interest rate of 1.26%.

Senior Notes

At December 31, 2012, our senior notes consist of two separate issuances. The ﬁrst is $150 million of 6.08% senior notes, which mature in July 
2014. We are required to make an installment payment of $50 million in July 2013, with the remainder due upon maturity. Interest payments are 
due semiannually in January and July of each year. The second is $250 million of 3.375% senior notes, which mature September 2015, with interest 
payments due semiannually in March and September of each year. We may redeem for cash some or all of the notes based on a redemption price 
set forth in the note indenture.

Our ﬁnancing arrangements require us to maintain certain covenants and ﬁnancial ratios.  We were in compliance with all covenants and 

ﬁnancial ratios at December 31, 2012.

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4.  Capital Stock
  We have one class of preferred stock and one class of common stock. We had no outstanding shares of preferred stock at December 31, 2012 
or 2011. Holders of shares of common stock are entitled to receive dividends when and if declared by the Board of Directors and are entitled to 
one vote per share on all matters submitted to a vote of the stockholders. At December 31, 2012, we had 4.2 million shares of common stock to 
be issued upon the exercise or vesting of equity awards and 9.1 million shares reserved for future issuance pursuant to share-based payment plans. 
During calendar year 2012, we purchased approximately 849,000 shares, or $50 million, of our common stock in accordance with plans authorized 
by our Board. At December 31, 2012, we had $453 million available under an authorized plan to purchase our common stock.

5.  Share-based Compensation
  We maintain a Management Incentive Plan (the “Plan”) that provides various share-based ﬁnancial methods to compensate our key employees 
with shares of our common stock or common stock equivalents. Under the Plan, as amended, we have, from time to time, utilized restricted share 
units, performance share units, restricted options and nonstatutory stock options to compensate our employees and directors. We currently are 
utilizing restricted and performance share units and nonstatutory stock options.

Our restricted share units have various vesting schedules ranging from three to 10 years when awarded. These restricted share units do not 
contain rights to vote or receive dividends until the vesting date. Unvested restricted share units are forfeited if the employee terminates for any 
reason other than death, disability or special circumstances as determined by the Compensation Committee. Restricted share units are valued based 
on the fair value of the award on the grant date, adjusted for dividend estimates based on grant date dividend rates.

Our  performance  share  units  vest  based  on  the  passage  of  time  (currently  four  to  10  years)  and  achievement  of  performance  criteria. 
Performance share units do not contain rights to vote or receive dividends until the vesting date. Unvested performance share units are forfeited 
if the employee terminates for any reason other than death or disability. Performance shares are valued based on the fair value of the award on the 
grant date, adjusted for dividend estimates based on grant date dividend rates.

Our nonstatutory stock options may be granted to key employees for the purchase of our common stock for 100% of the fair market value 
of the common stock at the grant date as awarded by the Compensation Committee. These options generally vest over a 10-year period and are 
forfeited immediately if the employee terminates for any reason other than death, disability or retirement after age 55. We did not grant any stock 
options during the years ended December 31, 2012, 2011 and 2010.

An employee is allowed to surrender shares of common stock that the employee has owned for at least six months in full or partial payment 
of the option price of an option being exercised and/or to satisfy tax withholding obligations incident to the vesting of restricted share units, 
performance share units, or the exercise of an option.

  We account for our restricted share units, performance share units and stock options in accordance with current accounting standards for 
share-based payments. These standards require the cost of all share-based payments to employees, including grants of employee stock options, to 
be recognized in our Consolidated Financial Statements based on the grant date fair value of those awards. This cost is recognized over the period 
for which an employee is required to provide service in exchange for the award, subject to the attainment of performance metrics established for 
performance share units. Share-based compensation expense is recorded in salaries, wages and employee beneﬁts in our Consolidated Statements of 
Earnings, along with other compensation expenses to employees. The following table summarizes the components of our share-based compensation 
program expense (in thousands):

Restricted share units
    Pretax compensation expense 
    Tax benefit 
    Restricted share unit expense, net of tax 
Performance share units 
    Pretax compensation expense 
    Tax benefit 
    Performance share unit expense, net of tax 
Stock options 
    Pretax compensation expense 
    Tax benefit 
    Stock option expense, net of tax 

2012 

Years ended December 31,
2011 

2010

$    24,393 
9,391 
$    15,002 

$      4,298 
1,655 
$      2,643 

$      1,024 
394 
$         630 

$    24,192 
9,237 
$    14,955 

$         816 
312 
$         504 

$      1,833 
700 
$      1,133 

$    19,190
7,208
$    11,982

$             –
–
$             –

$      2,207
829
$      1,378

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A summary of our restricted share units, performance share units and nonstatutory stock options is as follows:

Restricted Share Units 
Unvested at December 31, 2009 
    Granted 
    Vested 
    Forfeited 
Unvested at December 31, 2010 
    Granted 
    Vested 
    Forfeited 
Unvested at December 31, 2011 
    Granted 
    Vested 
    Forfeited 
Unvested at December 31, 2012 

Performance Share Units 
Unvested at December 31, 2010 
    Granted 
    Vested 
    Forfeited 
Unvested at December 31, 2011 
    Granted 
    Vested 
    Forfeited 
Unvested at December 31, 2012 

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Stock Options 
Outstanding at December 31, 2009 
    Exercised 
    Forfeited 
Outstanding at December 31, 2010 
    Exercised 
    Forfeited 
Outstanding at December 31, 2011 
    Exercised 
    Forfeited 
Outstanding at December 31, 2012 
Exercisable 

Number of 
Shares 
2,892,340 
755,616 
(335,106) 
(22,579) 
3,290,271 
599,125 
(495,439) 
(151,985) 
3,241,972 
400,926 
(769,087) 
(38,345) 
2,835,466 

Number 
of Shares 
– 
225,000 
– 
– 
225,000 
120,500 
(36,000) 
– 
309,500 

Weighted Average
Remaining 

Weighted 
Number of Shares  Average Exercise  Contractual Term 
Price 
$  11.44 
7.82 
13.79 
$  12.86 
9.68 
18.29 
$  14.65 
12.25 
18.84 
$  16.63 
$  12.74 

(in thousands) 
4,214 
(1,189) 
(27) 
2,998 
(1,087) 
(12) 
1,899 
(863) 
(5) 
1,031 
216 

(in years) 
4.18 
– 
– 
3.55 
– 
– 
3.01 
– 
– 
2.35 
1.81 

Weighted
Average Grant
Date Fair Value

$ 24.04
34.73
26.26
25.44
$ 26.26
40.89
29.23
23.80
$ 28.92
55.37
28.57
29.32
$ 32.75

Weighted
Average Grant
Date Fair Value
$          –
41.66
–
–
$   41.66
55.57
41.66
–
$   47.07

Aggregate
Intrinsic Value
(in millions)
$  87.8
32.4
–
$  83.8
38.2
–
$  57.8
36.8
–
$  44.4
$  10.2

At  December  31,  2012,  we  had  $45.6  million,  $11.0  million  and  $0.7  million  of  total  unrecognized  compensation  expense  related  to 
restricted share units, performance share units, and stock options, respectively, that is expected to be recognized on a straight-line basis over the 
remaining weighted average vesting period of approximately 2.6 years for restricted share units, 2.9 years for performance share units, and 1.1 years 
for stock options.

The aggregate intrinsic value of restricted and performance share units vested and options exercised during the years ended December 31, 
2012, 2011 and 2010, was $84.3 million, $61.9 million and $44.0 million, respectively. The aggregate intrinsic value of unvested restricted and 
performance share units was $187.8 million at December 31, 2012. The total fair value of shares vested for restricted share, performance share and 
stock option plans during the years ended December 31, 2012, 2011 and 2010, was $29.0 million, $20.0 million and $14.4 million, respectively.

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6.  Income Taxes

Income tax expense attributable to earnings before income taxes consists of (in thousands):

Current:
    Federal 
    State and local 

Deferred:
    Federal 
    State and local 

        Total tax expense 

2012 

Years ended December 31,
2011 

2010

$  152,140 
21,095 
173,235 

12,458 
8,594 
21,052 
$  194,287 

$    32,845 
8,171 
41,016 

110,495 
7,216 
117,711 
$  158,727 

$    70,381
9,595
79,976

37,897
2,204
40,101
$  120,077

Income tax expense attributable to earnings before income taxes differed from the amounts computed using the statutory federal income tax 

rate of 35% as follows (in thousands):

Income tax at federal statutory rate 
State tax, net of federal effect 
Nondeductible meals and entertainment 
Change in effective state tax rate, net of federal benefit 
Valuation allowance 
Other, net 
Total tax expense 

2012 
$  176,624 
16,191 
1,568 
126 
– 
(222) 
$  194,287 

Years ended December 31,
2011 
$  145,506 
9,668 
1,570 
1,611 
552 
(180) 
$  158,727 

2010
$  111,893
6,337
1,627
141
–
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$  120,077

Income taxes receivable was $2.4 million and $14.2 million at December 31, 2012 and 2011, respectively. These amounts have been included 
in other current assets in our Consolidated Balance Sheets. The tax effects of temporary differences that give rise to signiﬁcant portions of the 
deferred tax assets and deferred tax liabilities at December 31, 2012 and 2011, are presented below (in thousands):

Deferred tax assets:
Insurance accruals 
Allowance for doubtful accounts 
Compensation accrual 
Deferred compensation accrual 
Federal benefit of state uncertain tax positions 
Equity investment 
Other 
        Total gross deferred tax assets 
Valuation allowance 
        Total deferred tax assets, net of valuation allowance 
Deferred tax liabilities: 
Plant and equipment, principally due to differences in depreciation 
Prepaid permits and insurance, principally due to expensing for income tax purposes 
Other 
        Total gross deferred tax liabilities 
        Net deferred tax liability 

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2012 

2011

$      9,713 
1,715 
16,851 
25,997 
10,586 
2,197 
3,403 
70,462 
(2,749) 
67,713 

571,830 
19,069 
9,188 
600,087 
$  532,374 

$      8,316
1,827
20,522
24,727
7,155
2,197
3,584
68,328
(2,749)
65,579

551,526
17,605
8,027
577,158
$  511,579

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Guidance on accounting for uncertainty in income taxes prescribes recognition and measurement criteria and requires that we assess whether 
the beneﬁts of our tax positions taken are more likely than not of being sustained under tax audits.  We have made adjustments to the balance of 
unrecognized tax beneﬁts, a component of other long-term liabilities on our Consolidated Balance Sheet, as follows (in millions):

Beginning balance 
    Additions based on tax positions related to the current year 
    Additions/(reductions) based on tax positions taken in prior years 
    Reductions due to settlements 
    Reductions due to lapse of applicable statute of limitations 
Ending balance 

2012 
$        17.4 
7.1 
4.2 
– 
(2.9) 
$        25.8 

December 31, 
2011 
$        17.3 
4.0 
(0.3) 
(0.4) 
(3.2) 
$        17.4 

2010
$        18.9
4.2
(1.4)
(1.8)
(2.6)
$        17.3

At December 31, 2012 and 2011, we had a total of $25.8 million and $17.4 million, respectively, in gross unrecognized tax beneﬁts. Of 
these amounts, $16.8 million and $11.3 million represent the amount of unrecognized tax beneﬁts that, if recognized, would impact our effective 
tax  rate  in  2012  and  2011,  respectively.  Interest  and  penalties  related  to  income  taxes  are  classiﬁed  as  interest  expense  in  our  Consolidated 
Financial Statements. The amount of accrued interest and penalties during the years ended December 31, 2012, 2011 and 2010, was $1.1 million, 
$1.5 million, and $1.1 million, respectively. Future changes to unrecognized tax beneﬁts will be recognized as income tax expense and interest 
expense, as appropriate. The total amount of accrued interest and penalties for such unrecognized tax beneﬁts at December 31, 2012 and 2011, was 
$4.0 million and $2.9 million, respectively.

Tax years 2009 and forward remain subject to examination by federal tax jurisdictions, while tax years 2002 and forward remain open for state 

jurisdictions.

7.  Employee Beneﬁt Plans
  We maintain a deﬁned contribution employee retirement plan, which includes a 401(k) option, under which all employees are eligible to 
participate. We match a speciﬁed percentage of employee contributions, subject to certain limitations. For the years ended December 31, 2012, 
2011 and 2010, our matching contributions to the plan were $11.1 million, $10.5 million and $5.6 million, respectively. Effective March 1, 2009, 
we decreased our company match percentage from 50% to 0% for participants who are salaried employees exempt from overtime compensation 
and from 50% to 25% for all other participants. Effective July 14, 2010, we reinstated our company match percentage to 50% for all participants.

  We have a nonqualiﬁed deferred compensation plan that allows eligible employees to defer a portion of their compensation. Participants can 
elect to defer up to a maximum of 50% of their base salary as well as up to 85% of their bonus for the year. The compensation deferred under this 
plan is credited with earnings or losses on investments elected by plan participants. Each participant is fully vested in all deferred compensation 
and earnings; however, these amounts are subject to general creditor claims until actually distributed to the employee. A participant may elect 
to receive deferred amounts in one payment or in quarterly installments payable over a period of two to 25 years upon reaching age 55, having 
15 years of service or becoming disabled. Our total liability under this plan was $11.2 million as of December 31, 2012, and $10.8 million as of 
December 31, 2011. These amounts are included in other long-term liabilities in our Consolidated Balance Sheets. Participant withholdings are 
held by a trustee and invested in equity securities as directed by participants. These investments are classiﬁed as trading securities and recorded 
at fair value. Realized and unrealized gains and losses are recognized currently in earnings. The investments are included in other assets in our 
Consolidated Balance Sheets and totaled $11.2 million as of December 31, 2012, and 10.8 million as of December 31, 2011.

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8.  Fair Value Measurements

Accounting standards related to fair value measurements deﬁne fair value and establish a framework for measuring fair value. Assets and 
liabilities measured at fair value are based on one or more of three valuation techniques provided for in the standards, which are the market, income 
and cost approaches.

The standards state that fair value is an exit price, representing the amount that would be received to sell an asset, based on the highest 
and best use of the asset, or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based 
measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for 
evaluating such assumptions, the standards establish a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. These tiers 
are: Level 1, deﬁned as quoted prices in active markets for identiﬁed assets or liabilities; Level 2, deﬁned as inputs, other than the quoted prices in 
active markets, that are observable either directly or indirectly; and Level 3, deﬁned as unobservable inputs in which there is little or no market 
data, which require the reporting entity to develop its own assumptions about what market participants would use in pricing the asset or liability.

At December 31, 2012 and 2011, our trading investments of $11.2 million and $10.8 million, respectively, were measured at fair value, 
based on quoted market prices (Level 1). Trading investments are classiﬁed in other assets in our Consolidated Balance Sheets and measured on a 
recurring basis.

The carrying amounts and estimated fair values using the income method (Level 2), based on their net present value, discounted at our current 

borrowing rate of our long-term debt at December 31, 2012, were as follows (in millions):

Revolving lines of credit 
Variable-rate term loan 
Senior notes 

Carrying 
Value 
$      85.8 
200.0 
399.5 

Estimated
Fair Value
$      85.8
200.0
429.9

The  carrying  amounts  of  all  other  instruments  at  December  31,  2012,  approximate  their  fair  value  due  to  the  short  maturity  of  these 

instruments.

9.  Commitments and Contingencies

As of December 31, 2012, we had approximately $21.1 million of obligations remaining under operating lease arrangements related to terminal 
facilities. Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of one year) as of 
December 31, 2012, are approximately $21.1 million, with payment streams as follows (in millions): 2013 – $7.8; 2014 – $9.5; 2015 – $3.5, and 
2016 – $0.3.

Total rent expense was $27.5 million in 2012, $24.8 million in 2011, and $21.8 million in 2010. At December 31, 2012, we had outstanding 

commitments to acquire approximately $283 million of revenue equipment and facilities in 2013.

During 2012, we issued ﬁnancial standby letters of credit as a guarantee of our performance under certain operating agreements and self-
insurance arrangements. If we default on our commitments under the agreements or other arrangements, we are required to perform under these 
guarantees. The undiscounted maximum amount of our obligation to make future payments in the event of defaults is approximately $5.0 million.

  We are a defendant in certain class-action lawsuits in which the plaintiffs are current and former California-based drivers who allege claims for 
unpaid wages, failure to provide meal and rest periods, and other items. Further proceedings had been stayed in these matters pending the California 
Supreme Court’s decision in a case unrelated to ours involving similar issues. During the second quarter of 2012, the California Supreme Court 
issued its decision in this unrelated case and during the fourth quarter of 2012, we ﬁled a motion to decertify the class, which was heard and denied. 
We intend to ﬁle a motion to stay further proceedings pending a decision in the Ninth Circuit Court of Appeals on yet another unrelated case, but 
again with similar issues. We cannot reasonably estimate at this time the possible loss or range of loss, if any, that may arise from these lawsuits.

  We are involved in certain other claims and pending litigation arising from the normal conduct of business. Based on the present knowledge of 
the facts and, in certain cases, opinions of outside counsel, we believe the resolution of these claims and pending litigation will not have a material 
adverse effect on our ﬁnancial condition, our results of operations or our liquidity.

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10. Segment Information

 We have four reportable business segments – Intermodal (JBI), Dedicated Contract Services® (DCS), Integrated Capacity Solutions (ICS), 
and Truck (JBT) – 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 JBHT-owned 
equipment. ICS services include ﬂatbed, refrigerated and LTL, as well as a variety of dry-van and intermodal solutions. JBT business includes full-
load dry-van freight that is typically transported utilizing company-owned or company-controlled revenue equipment. 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 customers are geographically dispersed across the United States. A summary of certain segment information as of December 31 is presented 

below (in millions):

JBI 
DCS 
ICS 
JBT 
Other (includes corporate) 
        Total 

JBI 
DCS 
ICS 
JBT 
        Total segment revenues 
Intersegment eliminations 
        Total 

JBI 
DCS 
ICS 
JBT 
        Total 

JBI 
DCS 
JBT 
Other 
        Total 

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Assets (1)
December 31,
2011 
$  1,273 
488 
42 
250 
214 
$  2,267 

2010
$  1,042
433
36
245
206
$  1,962

Revenues
Years ended December 31,
2011 
$  2,673 
1,031 
356 
504 
4,564 
(37) 
$  4,527 

2010
$   2,141
907
291
479
3,818
(25)
$  3,793

Operating Income
Years ended December 31,
2011 
$     301 
103 
13 
27 
$     444 

2010
$     237
83
9
19
$     348

2012 
$  1,443 
586 
55 
185 
196 
$  2,465 

2012 
$  3,071 
1,080 
456 
484 
5,091 
(36) 
$  5,055 

2012 
$     375 
116 
16 
23 
$     530 

Depreciation and Amortization Expense
Years ended December 31,
2011 
$       91 
75 
38 
10 
$     214 

2010
$       77
68
42
10
$     197

2012 
$     104 
79 
36 
10 
$     229 

(1)   Business segment assets exclude the net impact of intercompany transactions and accounts.

82

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
11. Quarterly Financial Information (Unaudited)

Operating results by quarter for the years ended December 31, 2012 and 2011, are as follows (in thousands, except per share data):

2012: 

Operating revenues 

Operating income 

Net earnings 

First 

Second 

Third 

Fourth

Quarter 

$  1,165,922 

$  1,255,130 

$  1,295,792 

$  1,338,136

$     116,597 

$     137,215 

$     133,052 

$     143,335

$       67,684 

$       80,451 

$       78,241 

$       83,977

Basic earnings per share 

$           0.58 

$           0.69 

$           0.66 

$           0.71

Diluted earnings per share 

$           0.57 

$           0.67 

$           0.65 

$           0.70

2011: 

Operating revenues 

Operating income 

Net earnings 

$  1,000,780 

$  1,149,855 

$  1,171,270 

$  1,204,937

$       89,823 

$     113,443 

$     118,680 

$     122,287

$       50,095 

$       65,696 

$       68,650 

$       72,565

Basic earnings per share 

$           0.41 

$           0.55 

$           0.58 

$           0.62

Diluted earnings per share 

$           0.40 

$           0.53 

$           0.57 

$           0.61

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STOCKHOLDER INFORMATION
Corporate Address
J.B. Hunt Transport Services, Inc.
615 J.B. Hunt Corporate Drive
Lowell, AR 72745
479-820-0000

Internet Address
www.jbhunt.com

Auditors
Ernst & Young LLP
Rogers, Arkansas

Counsel
Mitchell, Williams, Selig, Gates & Woodyard PLLC
Little Rock, Arkansas

Stock Exchange Listing
J.B. Hunt Transport Services, Inc.
Class A Common Stock is listed on
NASDAQ National Market System

Stock Symbol
JBHT

Stock Transfer Agent and Registrar
Computershare Trust Company, N.A.
250 Royall Street
Canton, MA 02021
877-498-8861 for Stockholder Inquiries
www.computershare.com/investor

Annual Meeting
The Annual Meeting of Stockholders
will be held at 10:00 a.m., CDT,
on Thursday, April 25, 2013,
at the corporate headquarters of
J.B. Hunt Transport Services, Inc.,
Lowell, Arkansas, located on
Interstate 540 at the Lowell Exit 78.

BOARD OF DIRECTORS
Kirk Thompson
Chairman of the Board

Douglas G. Duncan
FedEx Freight Corporation (retired)

Francesca M. Edwardson
American Red Cross of Greater Chicago

Wayne Garrison
J.B. Hunt Transport Services, Inc. (retired)

Sharilyn S. Gasaway
Alltel Corp. (retired)

Gary C. George
George’s, Inc.

J. Bryan Hunt, Jr.
Hunt Auto Group

Coleman H. Peterson
Hollis Enterprises, LLC

John N. Roberts, III
President and Chief Executive Ofﬁcer

James L. Robo
NextEra Energy, Inc.

Dr. John A. White
Chancellor Emeritus
and Distinguished Professor
University of Arkansas

OFFICERS
Kirk Thompson
Chairman of the Board, Director

John N. Roberts, III
President and Chief Executive Ofﬁcer, Director

David G. Mee
Executive Vice President,
Finance and Administration,
Chief Financial Ofﬁcer, and Corporate Secretary

Craig Harper
Executive Vice President, Operations
and Chief Operations Ofﬁcer

Terrence D. Matthews
Executive Vice President
and President, Intermodal

Gary Anderson
Executive Vice President,
Equipment and Properties

Nicholas Hobbs
Executive Vice President
and President, Dedicated Contract Services

Kay Johnson Palmer
Executive Vice President
and Chief Information Ofﬁcer

Shelley Simpson
Executive Vice President, Chief Marketing Ofﬁcer,
and President, Integrated Capacity Solutions

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2012 Percent of Revenue by Industry

19%

16%

14%

12%

Specialty Retailers

General Merchandise

Food

Forest & Paper Products

Transportation

Electronics

Beverages

Other

Building Materials

Motor Vehicle & Parts

Soaps, Cosmetics

3%

Chemicals

2%

Pharmaceuticals

Metals

Government

1%

1%

1%

8%

6%

5%

4%

4%

4%

85

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(cid:42)(cid:176)(cid:34)(cid:176)(cid:202)(cid:9)(cid:156)(cid:221)(cid:202)(cid:163)(cid:206)(cid:228)(cid:202)(cid:85)(cid:202)(cid:29)(cid:156)(cid:220)(cid:105)(cid:143)(cid:143)(cid:93)(cid:202)(cid:1)(cid:192)(cid:142)(cid:62)(cid:152)(cid:195)(cid:62)(cid:195)(cid:202)(cid:199)(cid:211)(cid:199)(cid:123)(cid:120)
(cid:220)(cid:220)(cid:220)(cid:176)(cid:141)(cid:76)(cid:133)(cid:213)(cid:152)(cid:204)(cid:176)(cid:86)(cid:156)(cid:147)