We reported five5 distinct business segments during the three months ended March 31, 20212022 and 2020.2021. These segments included Intermodal (JBI), Dedicated Contract Services® (DCS®), Integrated Capacity Solutions™ (ICS), Truckload (JBT), and Final Mile Services®Services (FMS), and Truckload (JBT). The operation of each of these businesses is described in Note 14, Segment Information,, of our Annual Report (Form 10-K) for the year ended December 31, 2020.2021. A summary of certain segment information is presented below (in millions):

ITEM 2.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should refer to the attached interim Condensed Consolidated Financial Statements and related notes and also to our Annual Report (Form 10-K) for the year ended December 31, 2020,2021, as you read the following discussion. We may make statements in this report that reflect our current expectation regarding future results of operations, performance, and achievements. These are “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995 and are based on our belief or interpretation of information currently available. When we use words like “may,” “plan,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “goals,” “strategy,” “future,” “predict,” “seek,” “estimate,” “likely,” “could,” “should,” “would,” and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. Forward-looking statements are inherently uncertain, subject to risks, and should be viewed with caution. You should realize thereThese statements are many risksbased on our belief or interpretation of information currently available. Stockholders and uncertaintiesprospective investors are cautioned that could cause actual results toand future events may differ materially from those described.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 significantmaterial impact on future operating results areinclude the following: general economic and business conditions; potential business or operational disruptions resulting from the ongoing effects of the novel coronavirus (COVID-19) pandemic, including any future spikes or outbreaks of the virus, as well as government actions taken in response to the pandemic; competition and competitive rate fluctuations; excess capacity in the intermodal or trucking industries; a loss of one or more major customers; cost and availability of diesel fuel; interference with or termination of our relationships with certain railroads; rail service delays; disruptions to U.S. port-of-call activity; ability to attract and retain qualified drivers, delivery personnel, independent contractors, and third-party carriers; retention of key employees; insurance costs and availability; litigation and claims expense; determination that independent contractors are employees; new or different environmental or other laws and regulations; volatile financial credit markets or interest rates; terrorist attacks or actions; acts of war; adverse weather conditions; disruption or failure of information systems; inability to keep pace with technological advances affecting our information technology platforms; operational disruption or adverse effects of business acquisitions; increased costs for new revenue equipment; increased tariffs assessed on or disruptions in the procurement of imported revenue equipment; 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. Additionally, our business is somewhat seasonal with slightly higher freight volumes typically experienced during August through early November in our full-load transportation business. You should also refer to Part I, Item 1A of our Annual Report (Form 10-K) for the year ended December 31, 2020,2021, for additional information on risk factors and other events that are not within our control. Our future financial and operating results may fluctuate as a result of these and other risk factors as described from time to time in our filings with the SEC. 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.

GENERAL

We are one of the largest surface transportation, delivery, and logistics companies in North America. We operate five distinct, but complementary, business segments and provide a wide range of safe and reliable transportation brokerage, and delivery services to a diverse group of customers and consumers throughout the continental United States, Canada, and Mexico. 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, while we perform the majority of the pickup and delivery services. 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, freight handling, specialized equipment, and freight network design. In addition, we provide or arrange for local and home delivery services, generally referred to as final-mile delivery services, to customers through a network of cross-dock and other delivery system locations throughout the continental United States. Utilizing a network of thousands of reliable third-party carriers, we also provide comprehensive freight transportation brokerage and logistics services. In addition to dry-van, full-load operations, we also arrange for these unrelated outside carriers toalso provide flatbed, refrigerated, less-than-truckload (LTL), and other specialized equipment, drivers, and services. Also, we utilize a combination of company-owned and contracted power units to provide traditional over-the-road full truckload delivery services. Our customers, who include many Fortune 500 companies, have extremely diverse businesses. Many of them are served by J.B. Hunt 360°®, an online platform that offers shippers and carriers greater access, visibility, and transparency toof the supply chain. We account for our business on a calendar year basis, with our full year ending on December 31 and our quarterly reporting periods ending on March 31, June 30, and September 30. The operation of each of our five business segments is described in Note 14, Segment Information, of our Annual Report (Form 10-K) for the year ended December 31, 2020.2021.

Our operations continue to behave been impacted by the COVID-19 global pandemic. Due to the nature of our business and the large portion of our workforce consisting of drivers and other non-office personnel, fewer than 25% of our total employees have been able to work remotely; however, we remain committed to the safety of our workforce, suppliers, and customers while continuing to meet our customers’ needs. In the first quarter 2020, weWe began our COVID-19 response activities in the first quarter of 2020, which have been expanded and will continue as necessary until the risks related to COVID-19 dissipate. Our COVID-19 safety response activities at our home office campus and all other field locations throughout North America include requiringrequired remote working when possible, expanded health and safety policies, facility modifications, increased security coverage, and purchase and distribution of personal protective equipment and supplies. During the first quarter 2021,In addition, we committed to providingprovided incremental paid time off for employees to eliminatehelp offset any financial loss caused by their absence from work when receiving the COVID-19 vaccination. We also continue to workworked with local healthcare organizations to provide vaccination assistance under applicable area guidelines and procedures to all employees and their adult family members. On April 4, 2022, we eliminated the requirement of remote working when possible, resulting in previously remote employees returning to our home office campus and all other field locations throughout North America. We are reviewingcontinue to review and analyzinganalyze both external and internal COVID-related data, on a daily basis in anticipationincluding the effects of the full return to work phase of our COVID-19 response. Thus far throughout the pandemic, wenew variants. We have been pleased with the continued performance of our employees, particularly our drivers, who have been consistently availableprovided consistent service to serve our customers.customers throughout the pandemic.

Critical Accounting Policies and Estimates

The preparation of our financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that impact the amounts reported in our Condensed 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 experts, 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.

Information regarding our Critical Accounting Policies and Estimates can be found in our Annual Report (Form 10-K). The critical accounting policies that we believe require us to make more significant judgments and estimates when we prepare our financial statements include those relating to self-insurance accruals, revenue equipment, revenue recognition and income taxes. We have discussed the development and selection of these critical accounting policies and estimates with the Audit Committee of our Board of Directors. In addition, Note 2, Summary of Significant Accounting Policies, to the financial statements in our Annual Report (Form 10-K) for the year ended December 31, 2020,2021, contains a summary of our critical accounting policies. There have been no material changes to the methodology we apply for critical accounting estimates as previously disclosed in our Annual Report on Form 10-K.

RESULTS OF OPERATIONS

Comparison of Three Months Ended March 31, 20212022 to Three Months Ended March 31, 20202021

Total consolidated operating revenues increased to $2.62$3.49 billion for the first quarter 2021,2022, a 15%33% increase from $2.28$2.62 billion in the first quarter 2020, and a 17% increase2021. Total consolidated operating revenue, excluding fuel surcharge revenues.revenue, increased 27%. This increase inwas the result of all operating segments reporting revenue growth during the current period when compared to the first quarter 2021. JBT and ICS operating revenues was driven by increased revenues in ICS and JBT as both segments capturedwere able to source and secure capacity infor customers within the current capacity-constrained freight environment, primarily through the utilization of the Marketplace for J.B. Hunt 360 °®, increased revenues in FMS related to new contractual business obtained,360. JBI reported higher fleet utilization in DCS, and higheroperating revenue per load, partially offset by decreased load volumes in JBI. All operating segments experienced weather-related volume disruptions inover the first quarter 2021, withdue primarily to increased revenue per load and increased load volume. Current quarter DCS operating revenue increased primarily due to an increase in average revenue producing trucks and increased fleet productivity compared the prior year period. FMS operating revenue increased due primarily to increased demand for services in the segment and a business acquisition completed in the current quarter, partially offset by supply-chain related challenges in most significant impact within JBI.of the primary markets served.

JBI segment revenue increased 2%36% to $1.18$1.60 billion during the first quarter 2021,2022, compared with $1.15$1.18 billion in 2020.2021. Load volumes during the first quarter 2021 decreased 3%2022 increased 7% over the same period 2020.2021. Transcontinental loads decreased 2%increased 5% during the first quarter 2021,2022, and eastern network load volume was down 3%up 10% compared to the first quarter 2020. Load volumes were heavily impacted by severe weather-related events during2021. During the first half of the current quarter 2021, in additionJBI encountered network fluidity issues attributable to existinglabor challenges presentwithin the activities of our rail providers, customers, and internal operations, largely as a result of rail congestion and service issues stemming from elevated demandCOVID-related disruptions, which negatively impacted load volumes. However, during the remainder of the quarter, volume levels and labor challenges acrosssubsequently strengthened as customer unloading activity improved. Rail network velocity remains a challenge for the supply chain. The overall decrease in load volume was offset by a 5% increase in revenuesegment. Revenue per load, which is determined by the combination of customer rates, fuel surcharges and freight mix.mix, increased 28% during the first quarter 2022. Revenue per load excluding fuel surcharge revenue increased 6%21% compared to the first quarter 2020.2021. JBI segment operating income increased 5%87%, to $107.5$201.0 million in the first quarter 2021,2022, from $102.2$107.5 million in 2020. Benefits from2021. The increase is primarily due to increased revenue wereand a $13.7 million increase in net gains from the sale of equipment during the first quarter of 2022, partially offset by severe weather-related disruptions in the current quarter that further deteriorated network fluidityhigher rail and challenges already present,third-party dray purchased transportation expense, higher driver wagescosts to attract and recruiting costs, and higherretain drivers, increased non-driver salary and wages, for non-driver personnel, when comparedand higher costs due to the first quarter 2020. Furthermore, JBI operating income for the first quarter 2020 included an $8.2 million rail purchase transportation expense resulting from an adjusted calculation of the revenue divisions owed to BNSF Railway Company (BNSF) for 2019 related to the final award of our completed arbitration with BNSF issued in 2019 and JBI’s $4.0 million portion of the one-time COVID-19 related bonus paid to employee drivers and other key field personnel.port network inefficiencies. The current periodquarter ended with approximately 99,000109,300 units of trailing capacity and 5,7406,340 power units assigned to the dray fleet.

DCS segment revenue increased 7%28% to $580$741 million in the first quarter 20212022 from $542$580 million in 2020.2021. Productivity, defined as revenue per truck per week, increased 6% when compared to 2020.the first quarter 2021. Productivity excluding fuel surcharges increased 5%,was flat, primarily due to higher utilization of assets, contractual indexedindex-based rate increases and less idlebeing offset by lower productivity of equipment on start-up accounts, COVID-related labor disruptions during the first half of the current period.quarter, and a larger number of open trucks as a result of a tight labor market. A net additional 2032,221 revenue-producing trucks were in the fleet by the end of the first quarter 20212022 compared to athe prior year ago.period. DCS segment operating income increased 2%4% to $74.3$77.1 million in the first quarter 2021,2022, from $72.9$74.3 million in 2020.2021. The benefits ofincrease is primarily due to increased productivity wererevenue, partially offset by higher driver wages and recruiting costs, and higher salary and wages for non-driver personnel, and other costs related to the implementation of new, long-term customer contracts when compared to the first quarter 2020. In addition, operating income for the prior period included DCS’s $6.5 million portion of the one-time COVID-19 bonus paid in first quarter 2020.2021.

ICS segment revenue increased 56%29% to $525$675 million in the first quarter 2021,2022, from $335$525 million in 2020.2021. Overall volumes decreased 1%increased 12% while truckload volumes increased 15% compared to the first quarter 2021. Revenue per load increased 14%, primarily due to higher contractual and spot customer rates in our truckload business as well as changes in customer freight mix while truckload volumes increased 10% compared to the first quarter 2020. Revenue per load increased 58%, primarily due to higher spot and contractual customer rates compared to first quarter 2020.2021. Contractual business represented approximately 49%53% of total load volume and 35%43% of total revenue in the first quarter 2021,2022, compared to 67%49% and 54%35%, respectively, in 2020.2021. Approximately $359$430 million of first quarter 20212022 ICS revenue was executed through the Marketplace for J.B. Hunt 360°360 compared to $235$359 million in the first quarter 2020.2021. ICS segment operating income increased to $7.3$25.0 million in the first quarter of 20212022 compared to an operating loss of $18.9$7.3 million in 2020.2021. Gross profit margin increased to 12.4%13.0% in the first quarter 2021,2022, compared to 9.6%12.4% in 2020, primarily due to2021. Increases in revenue and gross profit margin were partially offset by higher rates in our contractual businesspersonnel salary and a higher mix of spot business during the current period. First quarter 2021, operating results were further impacted bywages and increased incentive compensation and technology spending, compared to a year ago. ICS’s carrier base increased 24%36% compared to first quarter 2020.

FMS segment revenue increased 31% to $202 million in the first quarter 2021 from $154 million in 2020. Stop count for the first quarter 2021 increased 37%, while productivity, defined as revenue per stop, decreased 4% compared to 2020. The reduction in productivity was primarily due to a shift in the mix between asset and asset-light operations resulting from the characteristics of new customer contracts. FMS segment operating income increased to $8.5 million in the first quarter of 2021 compared to an operating loss of $3.3 million in 2020, primarily due to increased revenues, partially offset by higher costs related to service quality performance controls, higher salary and wages for non-driver personnel, and increased third-party truck purchased transportation costs. In addition, the operating loss for the prior period included FMS’s $1.3 million portion of the one-time COVID-19 bonus paid in first quarter 2020.2021.

JBT segment revenue totaled $150$264 million for the first quarter 2021,2022, an increase of 43%77% from $105$150 million in first quarter 2020.2021. Revenue excluding fuel surcharge increased 46%72% primarily due to a 6% increase in load volume, a 38%47% increase in revenue per load excluding fuel surcharge revenue, a 17% increase in load volume, and an 8%a 10% increase in average length of haul compared to first quarter 2020. The2021. Load volume growth in load count and the increase in average length of haul during the first quarter 2021, were primarily driven byrelated to the continued leveraging of the J.B. Hunt 360 platform to grow power capacity and the expansion of J.B. Hunt 360box™360box® which leverages the J.B. Hunt 360 platform. Revenue per loaded mile excluding fuel surcharge in first quarter 2021 increased 28%, while comparable contractual customer rates increased 14% comparedplatform to first quarter 2020.access drop-trailer capacity for customers across our transportation network. At the end of the first quarter 2021,2022, the JBT fleet consisted of 11,655 trailers and 2,236 tractors, compared to 8,571 trailers and 1,716 tractors and 8,571 trailers,in 2021. Trailer turns in the first quarter of 2022 decreased 13% compared to 1,887 tractorsfirst quarter 2021 due to the onboarding of new trailers, freight mix and 7,391 trailers in 2020.customer detention of equipment. JBT segment operating income increased to $10.2$31.5 million in 2021,2022, compared with $1.8$10.2 million during first quarter 2020.2021. Benefits from the higher load volume and increased revenue per load were partially offset by higher purchased transportation expense, higher equipment maintenance costs, and increased technology spending.

FMS segment revenue increased 8% to $218 million in the first quarter 2022 from $202 million in 2021, primarily due to the addition of multiple new customer contracts implemented over the past year and the acquisition of Zenith Freight Lines, LLC (Zenith) during the second half of the current quarter. The increase in revenue was partially offset by supply-chain related constraints for goods in the primary markets served by FMS as well as the effects of internal efforts to improve revenue quality across certain accounts. FMS segment had an operating loss of $0.2 million in the first quarter of 2022 compared to operating income of $8.5 million in 2021. Benefits from higher revenue were more than offset by higher personnel salary and wages, for non-driver personnel. In addition, operating income forimplementation costs related to new long-term contractual business, higher third-party purchased transportation expense, increased driver recruiting costs, and transaction costs related to the prior period included JBT’s $0.5 million portion of the one-time COVID-19 bonus paid in first quarter 2020.Zenith acquisition.

Consolidated Operating Expenses

The following table sets forth items in our Condensed Consolidated Statements of Earnings as a percentage of operating revenues and the percentage increase or decrease of those items as compared with the prior period.

Total operating expenses increased 13.4%30.9%, while operating revenues increased 14.8%,33.2% during the first quarter 2021,2022, from the comparable period 2020.2021. Operating income increased to $207.7$334.3 million during the first quarter 2021,2022 from $154.7$207.7 million in 2020.2021.

Rents and purchased transportation costs increased 19.0%35.9% in 2021 compared with 2020.first quarter 2022. This increase was primarily due to increased third-partythe result of an increase in rail and truck carrier purchased transportation rates inwithin JBI and ICS segments, increased JBI and ICS load volume, which increased services provided by third-party rail and truck carriers, and an increase in the use of third-party truck carriers by JBT and FMS during the current period.first quarter of 2022 compared to 2021.

Salaries, wages and employee benefitbenefits costs increased 8.0% in 202123.2% during the first quarter 2022, compared with 2020.2021. This increase was primarily related to increases in driver pay and office personnel compensation due to a tighter supply of qualified drivers, a trend we anticipate continuing, and an increase in the number of employees and additionalas well as an increase in incentive compensation. This increase was partially offset by first quarter 2020 including a $12.3 million one-time COVID-19 related bonus paid to employee drivers and other key field personnel and $3.4 million of additional stock compensation expense related to the acceleration of equity award vesting for executive employee retirements.

Depreciation and amortization expense increased 5.7% in 2021, primarily due to the addition of tractors and specialized trailing equipment within JBI, increased capital investments in information technology, and increased trailing equipment within JBT. Fuel costs increased 11.8%67.6% in 2021,2022, compared with 2020,2021, due primarily due to an increase in the price of fuel and an increaseincreased road miles. Depreciation and amortization expense increased 8.2% in road miles.first quarter 2022, primarily due to equipment purchases related to new DCS long-term customer contracts and the addition of trailing equipment and accessories within our JBI and JBT segments, partially offset by lower JBT tractor depreciation expense due to reductions in its company-owned tractor fleet.

Operating supplies and expenses decreased 4.6% in 2021, compared with 2020,increased 30.9%, driven primarily due to reducedby higher equipment maintenance costs, increased tire expense, higher travel and entertainment expenses, partially offset byand increased tire expenses and higher weather-related towing costs.tolls expense. General and administrative expenses decreased 16.6% for the current quarter were virtually flat compared with 2020,from the comparable period in 2021, primarily due to increased technology spend on the J.B. Hunt 360° platform and legacy system upgrades,higher net gains from sale or disposals of assets, partially offset by higher advertising costs, building rentals, and increased driver hiring expenses, being offset by decreased professional fees, lower bad debt expenses, and decreased net loss from the sale or disposal of assets.service expenses. Net lossgain from sale or disposal of assets was $1.1$17.3 million in 2021,2022, compared to a net loss from sale or disposals of $1.5assets of $1.1 million in 2020.2021. Insurance and claims expense increased 17.5%21.3% in 2021,2022 compared with 2020,2021, primarily due to higher incident volume and higher insurance policy premium expenses, partially offset by a decrease in accident severity.increased cost per claim.

Net interest expense for the currentincreased 4.7% in 2022 due to an increase in effective interest rates on our debt compared to first quarter was virtually flat compared with 2020.2021. Income tax expense increased 29.4%59.9% in first quarter 2021,2022, compared with 2020,2021, primarily due to increasedhigher taxable earnings, partially offset by a higher effective income tax rate in the prior period due to the impact of stock compensation accelerations for executive employee retirements.earnings. Our effective income tax rate was 24.4% for the first quarter 2022, compared with 25.1% for the first quarter 2021, compared to 26.5% in 2020.2021. Our annual tax rate for 20212022 is expected to be between 24.0% and 25.0%. In determining our quarterly provision for income taxes, we use an estimated annual effective tax rate, adjusted for discrete items. This rate is based on our expected annual income, statutory tax rates, best estimate of nontaxable and nondeductible items of income and expense, and the ultimate outcome of tax audits.

Liquidity and Capital Resources

Cash Flow

Net cash provided by operating activities totaled $365$291.8 million during the first three months of 2021,2022, compared with $249$364.7 million for the same period 2020.2021. Operating cash flows increaseddecreased primarily due to the timing of general working capital activities and increasedoutstanding trade accounts receivable, partially offset the increase in earnings. Net cash used in investing activities totaled $86$376.1 million in 2021,2022, compared with $129$85.9 million in 2020.2021. The decreaseincrease resulted from a decreasean increase in equipment purchases, net of proceeds from the sale of equipment and the purchase of Zenith during the current period.first quarter 2022. Net cash used in financing activities was $39$126.7 million in 2021,2022, compared with $107$39.1 million in 2020.2021. This decreaseincrease resulted primarily from a decreasean increase in treasury stock purchases duringpurchased and the increase of our quarterly cash dividend to $0.40 per share in first quarter 2022, compared to $0.28 per share in first quarter 2021.

Debt and Liquidity Data

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 as well as periodic business acquisitions. We are frequently able to accelerate or postpone a portion of equipment replacements or other capital expenditures depending on market and overall economic conditions. However, we do anticipate that the current challenges related to timely delivery of ordered equipment will continue due to supply chain challenges impacting production. In recent years, we have obtained capital through cash generated from operations, revolving lines of credit and long-term debt issuances. We have also periodically utilized operating leases to acquire revenue equipment. For our senior notes maturing in 2022, it is our intent to pay the entire outstanding balances in full, on or before the maturity dates, using our existing cash balance, senior revolving line of credit or other sources of long-term financing.

We believe our liquid assets, cash generated from operations, and revolving line of credit will provide sufficient funds for our operating and capital requirements for the foreseeable future. Should COVID-19 related economic conditions warrant, we believe we have sufficient credit resources available to meet our near and long-term operating and capital needs. Throughout 2020 and the first quarter 2021, we paused or cancelled certain capital expenditures and other discretionary spending in response to the COVID-19 pandemic. As a result, atAt March 31, 2021,2022, we had a cash balance of $553$144.5 million and we had no outstanding balance on our senior revolving line of credit, which authorizes us to borrow up to $750 million under a senior revolving line of credit, and is supported by a credit agreement with a group of banks that expires in September 2023. This senior credit facility 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.

Our financing arrangements require us to maintain certain covenants 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 financial ratios. At March 31, 2021, we were well above compliance with all covenants and financial ratios, and we fully intend and expect to emerge from the current COVID-19 related economic environment with our investment-grade rating intact.other fees.

We are continually evaluatingcontinue to evaluate the possible effects of current COVID-19 related economic conditions and reasonable and supportable economic forecasts on operational cash flows, including the risks of declines in the overall freight market and our customers' liquidity and ability to pay. We regularly monitor working capital and maintain frequent communication with our customers, suppliers and service providers. A large portion of our cost structure is variable. Purchased transportation expense represents more than half of our total costs but is heavily tied to load volumes. Our second largest cost item is salaries and wages, the largest portion of which is driver pay, which includes a large variable component.

The following table summarizes our expected obligationsOur financing arrangements require us to maintain certain covenants and commitments as offinancial ratios. At March 31, 2021 (in millions):

(1)      Interest payments2022, we were compliant with all covenants and financial ratios, and we fully intend and expect to emerge from the current COVID-19 related economic environment with our investment-grade rating intact. In addition, we do not anticipate the future international transitioning from LIBOR to alternative rates to have a material impact on debt are based on the debt balance and applicable rate at March 31, 2021.          our financial statements.

Our net capital expenditures were approximately $86$289.1 million during the first three months of 2021,2022, compared with $129$85.9 million for the same period 2020.2021. Our net capital expenditures include net additions to revenue equipment and non-revenue producing assets that are necessary to contribute to and support the future growth of our various business segments. Capital expenditures in 20212022 were primarily for tractors, additional intermodal containers and chassis, and other trailing equipment. We are currently committed to spend approximately $1.7$3.0 billion during the years 20212022 to 2023. In response to the COVID-19 pandemic, we previously paused or cancelled certain capital expenditures originally2024, of which, approximately $1.5 billion is planned for 2020. Based on the current economic environment and our longer-term outlook, we have increased our anticipated net capitalfull year 2022. These expenditures for 2021, which will primarily be driven by purchasing additional intermodal containers, additional DCS tractors, and trailers used in our J.B. Hunt 360box program. Accordingly, we now expectAt March 31, 2022, our aggregate future minimum lease payments under operating lease obligations related primarily to spend in the rangerental of $1.2 billion to $1.3 billion for net capital expenditures during 2021. Our ultimate capital expenditure levels could be affected by manufacturer production slowdowns resulting from the COVID-19 pandemic. The table above excludes $74.6 million of potential liabilities for uncertain tax positions, including interestmaintenance and penalties, which are recorded on our Condensed Consolidated Balance Sheets. However, we are unable to reasonably estimate the ultimate timing of any settlements.support facilities, cross-dock and delivery system facilities, office space, parking yards, and equipment was $247.4 million.

Off-Balance Sheet Arrangements

We had no off-balance sheet arrangements, other than our net purchase commitments of 1.7$3.0 billion, as of March 31, 2021.2022.

Risk Factors

You should refer to Part I, Item 1A of our Annual Report (Form 10-K) for the year ended December 31, 2020,2021, under the caption “Risk Factors” for specific details on the following factors and events that are not within our control and could affect our financial results.

Risks Related to Our Industry

Risks Related to Our Business

ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our outstanding debt at March 31, 20212022 includes our senior revolving line of credit and senior notes issuances. Our senior notes have fixed interest rates ranging from 3.30% to 3.875%. Our senior revolving line of credit has variable interest rates, which are based on the Prime Rate, the Federal Funds Rate, or LIBOR, depending upon the specific type of borrowing, plus any applicable margins. We currently have an interest rate swap agreement which effectively converts our $350 million of 3.30% fixed rate senior notes due August 2022 to a variable rate, to allow us to maintain a desired mix of variable and fixed rate debt. The applicable interest rate under this agreement is based on LIBOR plus an established margin. Risk can be quantified by measuring the financial impact of a near-term adverse increase in short-term interest rates. 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 $3.5 million.

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 three months ended March 31, 2021.2022. 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. As of March 31, 2021,2022, we had no 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 may occur in the future or the extent to which fuel surcharges could be collected to offset such increases. As of March 31, 2021,2022, we had no derivative financial instruments to reduce our exposure to fuel price fluctuations.

ITEM 4.   CONTROLS AND PROCEDURES

We maintain controls and procedures designed to ensure that the information we are required to disclose in the reports we file with the SEC is recorded, processed, summarized and reported, within the time periods specified in the SEC rules, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2021.2022.

There were no changes in our internal control over financial reporting during the first quarter of 20212022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part II. Other Information

ITEM 1.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 these claims and pending litigation will not have a material adverse effect on our financial condition, results of operations or liquidity.

ITEM 1A.RISK FACTORS

Information regarding risk factors appears in Part I, Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report on Form 10-Q and in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020.2021.

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Purchases of Equity Securities

The following table summarizes purchases of our common stock during the three months ended March 31, 2021:2022:

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4.    MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.    OTHER INFORMATION

Not applicable.

ITEM 6.    EXHIBITS

Index to Exhibits

SIGNATURES

Pursuant to the requirements 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 3rd2nd day of May 2021.2022.