UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

Amendment No. 110-Q

(Mark One)

For the quarterly period ended March 31, 20189

OR

Commission File Number: 0-11757

J.B. HUNT TRANSPORT SERVICES, INC.

(Exact name of registrant as specified in its charter)

615 J.B. Hunt Corporate Drive, Lowell, Arkansas  72745

(Address of principal executive offices)

479-820-0000

(Registrant's telephone number, including area code)

www.jbhunt.com

(Registrant's web site)

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 the 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 Web site, 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 whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer   X    Accelerated filer         Non-accelerated filer        

Smaller reporting company       Emerging growth company       

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

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 number of shares of the registrant’s $0.01 par value common stock outstanding on March 31, 20189 was 109,10755,6188,738,893.

EXPLANATORY NOTE

This Amendment No. 1 on Form 10-Q/A to the J. B. Hunt Transport Services, Inc., Quarterly Report on Form 10-Q, as originally filed with the Securities and Exchange Commission on April 27, 2018 (the “Original Filing”), is being filed solely to correct a typographical error in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”  The Original Filing disclosed Eastern network load volume decreased 12%, when it should have stated load volume increased 12%.  Specifically, page 13 of the Original Filing included the sentence: “Transcontinental loads grew 2% during the first quarter 2018, while the Eastern network load volume was down 12% compared to the first quarter 2017.”  The sentence has been amended to state the following: “Transcontinental loads grew 2% during the first quarter 2018, while the Eastern network load volume grew 12% compared to the first quarter 2017.”

Except as described above, no other changes have been made to the Original Filing.  We have restated the entire filing for convenience to the reader.  This Form 10-Q/A does not does reflect subsequent events that may have occurred since the date of the Original Filing or amend, update or change the financial statements or any other items or disclosures in the Original Filing.  In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended, we have included new certifications from our Chief Executive Officer and Chief Financial Officer dated the date of this Form 10-Q/A.

J.B. HUNT TRANSPORT SERVICES, INC.

Form 10-Q

For The Quarterly Period Ended March 31, 20189

Table of Contents

Part I.    Financial Information

ITEM 1.   FINANCIAL STATEMENTS

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Earnings

(in (in thousands, except per share amounts)

(unaudited)

See Notes to Condensed Consolidated Financial Statements.

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Balance Sheets

(in (in thousands)

See Notes to Condensed Consolidated Financial Statements.

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Stockholders' Equity

 (in thousands, except per share amounts)

(unaudited)

See Notes to Condensed Consolidated Financial Statements.

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Cash Flows

(in (in thousands)

(unaudited)

See Notes to Condensed Consolidated Financial Statements.

J.B. HUNT TRANSPORT SERVICES, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Revenue                                                                                             

Our revenue is earned through the service offerings of our four reportable business segments. See Note 10, Business Segments, for revenue reported by segment. All revenue transactions between reporting segments are eliminated in consolidation.

Intermodal (JBI) - 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. JBI performs these services primarily through contractual rate quotes with customers that are held static for a period of time, usually one year.

Dedicated Contract Services® (DCS) - 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 customer contracts that govern services performed and applicable rates. 

Integrated Capacity Solutions (ICS) - 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. ICS performs these services through customer contractual rate quotes as well as spot quotes that are one-time rate quotes issued for a single transaction or group of transactions.

Truckload (JBT) - 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. JBT utilizes both contractual rate quotes and spot rate quotes with customers.

As of March 31, 2018, 2019, we had $77.2$88.1 million and $24.8$23.8 million of total unrecognized compensation expense related to restricted share units and performance share units, respectively, that is to be recognized over the remaining weighted-average period of approximately 3.63.3 years for restricted share units and 2.62.3 years for performance share units. During the first quarter 2018,2019, we issued 3,432170 shares for vested restricted share units and 51,441 shares for vested performance share units.

Senior Revolving Line of Credit

At March 31, 2018, 2019, we were authorized to borrow up to $500$750 million under a senior revolving line of credit, which is supported by a credit agreement with a group of banks and expires in September 2020. 2023. This senior credit facility allows us to request an increase in the total commitment by up to $250$250 million and to request a one-yearone-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 March 31, 2018, 2019, we had $167.9 millionno outstanding at an average interest rate of 2.84%borrowings under this agreement.

Senior Notes

Our senior notes consist of three separate issuances. The first and second issuances are $250 is $250 million of 2.40%3.85% senior notes due March 2019 and $250 million of 3.85% senior notes due March 2024, respectively, both of which werewas issued in March 2014. Interest payments under both notes are due semiannually in March and September of each year, beginning September 2014. The third is $350 million of 3.30% senior notes due August 2022, issued in August 2015. Interest payments under this note are due semiannually in February March and August September of each year, beginning September 2014. The second is $350 million of 3.30% senior notes due August 2022, issued in August 2015. Interest payments under this note are due semiannually in February and August of each year, beginning February 2016. The third is $700 million of 3.875% senior notes due March 2026, issued in March 2019. Interest payments under this note are due semiannually in March and September of each year, beginning September 2019. All three senior notes were issued by J.B. Hunt Transport Services, Inc., a parent-level holding company with no significant assets or operations. The notes are guaranteed on a full and unconditional basis by a wholly-owned subsidiary. All other subsidiaries of the parent are minor. We registered these offerings and the sale of the notes under the Securities Act of 1933, pursuant to a shelf registration statementstatements filed in February 2014. 2014 and January 2019. All notes are unsecured obligations and rank equally with our existing and future senior unsecured debt. We may redeem for cash some or all of the notes based on a redemption price set forth in the note indenture. See Note 5, Derivative Financial Instruments, for terms of an interest rate swapsswap entered into on the $250$350 million of 2.40%3.30% senior notes due March 2019 and the $350August 2022. Our $250 million of 3.30%2.40% senior notes due August 2022.      matured in March 2019. The entire outstanding balance was paid in full at maturity.

Our financing arrangements require us to maintain certain covenants and financial ratios.  We were in compliance with all covenants and financial ratios at March 31, 2018. For all debt facilities maturing in 2019, it is our intent to pay the entire outstanding balances in full, on or before the maturity dates, using our existing senior revolving line of credit or other sources of long-term financing.2019.

The fair value of trading investments has been measured using the market approach (Level 1)1) and reflect quoted market prices. The fair values of interest rate swaps and corresponding senior notes have been measured using the income approach (Level 2)2), which include relevant interest rate curve inputs. Trading investments are classified in other assets in our Consolidated Balance Sheets. Depending on their period end fair value, interestInterest rate swaps are classified in other assets, other long-term liabilities orand other accrued expenses in our Condensed Consolidated Balance Sheets. The senior notes are classified in long-term debt and current portion of long-term debt in our Condensed Consolidated Balance Sheets.

Financial Instruments

The carrying amount and estimated fair value at March 31, 2018, 2019, using the income approach (Level 2)2), based on their net present value, discounted at our current borrowing rate, of our senior revolving line of credit and remaining senior notes not measured at fair value on a recurring basis, were $415.8$941.2 million and $421.0$979.2 million, respectively.

The carrying amounts of all other instruments at March 31, 2018, 2019, approximate their fair value due to the short maturity of these instruments.

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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, 2017,2018, 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. You should realize there are many risks and uncertainties that could cause actual results to differ materially from those described. Some of the factors and events that are not within our control and could have a significant impact on future operating results are 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, rail service delays, insurance costs and availability, claims expense, retention of key employees, terrorist attacks or actions, acts of war, adverse weather conditions, disruption or failure of information systems, new or different environmental or other laws and regulations, operational disruption or adverse effects of business acquisitions, 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. 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 Item 1A of our Annual Report (Form 10-K) for the year ended December 31, 2017,2018, 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.

GENERAL

We are one of the largest surface transportation, delivery, and logistics companies in North America. We operate four distinct, but complementary, business segments and provide a wide range of transportation and delivery services to a diverse group of customers 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, 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. Also, we utilize a combination of company-owned and contracted power units to provide traditional over-the-road full truckload delivery services. 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 four business segments is described in Note 13, Segment Information, of our Annual Report (Form 10-K) for the year ended December 31, 2017.

2018.

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, 2017,2018, 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, 20189 to Three Months Ended March 31, 20178

Total consolidated operating revenues increased to $1.95$2.09 billion for the first quarter 2018,2019, a 20%7% increase from $1.63$1.95 billion in the first quarter 2017,2018, and a 17%an 8% increase excluding fuel surcharge revenues. This increase in operating revenues was primarily due to a 6% increase in load volumes and an 8%11% increase in revenue per load, excluding fuel surcharges, in JBI, a 26%22% increase in revenues in DCS related to new customer contracts and rate increases, from more mature customer contracts, and a 6%15% increase in load volume in ICS and a 34%10% increase in JBT revenue primarily due to customer rate increases and a larger operating fleet compared to the same period in 2018. These overall increases were partially offset by a 7% decrease in JBI load volume and a 12% decrease in revenue per load in ICS over the same period in 2017. JBT revenue decreased 1% primarily from fewer seated trucks compared to a year ago.ICS.

JBI segment revenue increased 14%2% to $1.07$1.09 billion during the first quarter 2018,2019, compared with $937 million$1.07 billion in 2017.2018. Load volumes during the first quarter 2018 grew 6%2019 decreased 7% over the same period 2017.2018. Transcontinental loads grew 2%declined 8% during the first quarter 2018,2019, while the Eastern network load volume grew 12%was down 7% compared to the first quarter 2017.2018. Approximately half of this decrease in volume is attributable to anticipated rail lane closures and persistent severe winter weather events in the Midwest region that impacted operations. The 14%2% increase in revenue was primarily due to the 6% volume growth, combined with an 8%a 10% increase in revenue per load, which is determined by the combination of customer rates, fuel surcharges and freight mix. Revenue per load excluding fuel surcharge revenue increased 4%11% year over year. JBI segment operating income increased 20%decreased 10%, to $114.2$103.3 million in the first quarter 2018,2019, from $95.3$114.2 million in 2017.2018. Benefits from volume growth, customer rate increases and freight mix were partiallymore than offset by an increase in rail purchased transportation costs; reduced network utilization and lower dray efficiency created from rail congestion, customer equipment pool utilization and a tight third party dray market;winter weather interruptions; higher equipment ownership and maintenance costs; and increased driver wages and recruiting costs; increased costs for onboarding and integration of container tracking technologies and insurance and claims costs compared to the first quarter 2017.2018. The current period ended with approximately 89,50095,800 units of trailing capacity and 5,4505,671 power units assigned to the dray fleet.

DCS segment revenue increased 26%22% to $494$602 million in the first quarter 20182019 from $392$494 million in 2017.2018. Productivity, defined as revenue per truck per week, increased 5%6% when compared to 2017.2018. Productivity excluding fuel surcharges increased 2%4%, primarily due to customer rate increases partially offset by a more impactful winter weather seasonand better integration of assets between customer accounts during the first quarter of 20182019 compared to 2017.2018. In addition, the growth in DCS revenue includes an increase of $35$26 million in Final Mile Services (FMS) revenue approximately $25 million of which was derived from the 2017 acquisition of Special Logistics Dedicated, resulting in a 75% increase in total FMS revenue when compared to first quarter 2017.2018. A net additional 1,3291,644 revenue producing trucks were in the fleet by the end of the first quarter 20182019 compared to a year ago, primarily from private fleet conversions and growth in FMS in the current and prior periods. DCS segment operating income decreased 9%increased 24% to $40.6$50.3 million in the first quarter 2018,2019, from $44.8$40.6 million in 2017.2018. Increased revenue was more thanpartially offset by winter weather inefficiencies, higher insurance and claims costs, increased driver wages and recruiting costs higher non-driver salaries wages and benefits, higher facilities rent and costs fromto expand the expanded FMS network, increased maintenance costs on equipment scheduled to be traded in 2018 and approximately $1.9 million in additional non-cash amortization expense compared to the first quarter 2017.2018.

ICS segment revenue increased 41%2% to $296$301 million in the first quarter 2018,2019, from $209$296 million in 2017.2018. Overall volumes increased 6%15% while revenue per load increased 34%decreased 12%, primarily due to customer mix changes and a more vibrantlower spot pricing market when compared to first quarter 2017. Spot volumes increased 43% and contractual business load counts decreased 7% compared to the same period in 2017.2018. Contractual business represented approximately 67%68% of total load volume and 44%51% of total revenue in the first quarter 2018,2019, compared to 76%67% and 63%44%, respectively, in 2017.2018. Approximately $186 million of first quarter 2019 ICS segment operating income increased 99%revenue was executed through the Marketplace for J.B. Hunt 360° compared to $8.9$96 million in the first quarter 2018, from $4.42018. ICS segment operating income decreased 22% to $7.0 million in 2017,the first quarter 2019, from $8.9 million in 2018. Gross profit margin increased to 16.5% in the first quarter 2019, compared to 14.4% in 2018, primarily from a higher revenue per load, a higherdue to an adequate supply of carrier capacity to accommodate customer demand during the current period. Increased gross profit margin and an increased number of brancheswas more than two years old, partially offset by continued personnel growth costs and increased technology spending as marketplacethe Marketplace for JBHunt360J.B. Hunt 360° continues its rollout. Approximately $96 million of first quarter 2018 ICS revenue was executed through the marketplace for JBHunt360. Gross profit margin increased to 14.4%expand in the first quarter 2018, compared to 14.3% in 2017, primarily due to increased spot market activity. Total branch count grew to 44 locations compared to 42 at the end of the comparable quarter last year.functionality and capacity. ICS’s carrier base increased 15%29% and employee count increased 14%18% compared to first the quarter 2017.2018.

JBT segment revenue totaled $93$102 million for the first quarter 2018, a decrease2019, an increase of 1%10% from $94$93 million in first quarter 2017.2018. Revenue excluding fuel surcharge decreased 3%increased 12% primarily from customer rate increases and a 15% decrease4% increase in load count partially offsetcompared to first quarter 2018. Load volume in the first quarter 2019 was negatively impacted by an increasesevere winter weather events in revenue per load.the Midwest region of operations. Revenue per load excluding fuel surcharge increased 14%8%, primarily from a 10%12% increase in rates per loaded mile, andpartially offset by a 3% increase4% decrease in length of haul when compared to first quarter 2017.2018. At the end of the first quarter 2018,2019, JBT operated 1,9262,043 tractors compared to 2,1441,926 in 2017.2018. JBT segment operating income increased 4%41% to $5.1$7.2 million in 2018,2019, compared with $4.9$5.1 million during first quarter 2017.2018. Benefits from the higher revenue per load and lower equipment ownership costs were partially offset by a 10% decrease in tractor count, an average of 162 unseated trucks during first quarter 2018, higher driver and independent contractor costs per mile and higher recruiting costs per driver and independent contractor compared to first quarter 2017.2018.

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 20.3%8.0%, while operating revenues increased 19.6%7.3%, during the first quarter 2018,2019, from the comparable period 2017.2018. Operating income increaseddecreased to $168.8$167.8 million during the first quarter 2018,2019, from $149.4$168.8 million in 2017.2018.

Rents and purchased transportation costs increased 19.6%3.6% in 2018.2019. This increase was primarily the result of increased third-party rail purchased transportation rates in JBI and increased load volumes in ICS, which increased services provided by third-party rail and truck carriers within JBI and ICS segments and increased truck and rail purchased transportation rates.carriers.

Salaries, wages and employee benefit costs increased 18.4%14.7% in 20182019 compared with 2017.2018. This increase was primarily related to increases in driver pay and office personnel compensation due to a tighter supply of qualified drivers and an increase in the number of employees.

Fuel costs increased 33.8% in 2018, compared with 2017, due to increases in the price of fuel and increased road miles. Depreciation and amortization expense increased 14.5%13.6% in 2018,2019, primarily due to additions to our JBI segment tractor, container and chassis fleets to support additional business demand and equipment purchasedpurchases related to new DCS long-term customer contracts. Fuel costs increased 3.9% in 2019, compared with 2018, due to increased road miles, partially offset by a decrease in the price of fuel.

Operating supplies and expenses increased 21.8%10.6% in 2018,2019, compared with 2017,2018, primarily due to higher equipment maintenance costs, increased tire expense, higher travel costs, increased toll costs and higher building maintenancetravel expenses. General and administrative expenses increased 37.7%39.3% for the current quarter from the comparable period in 2017,2018, primarily due to increased net losses from asset salestechnology spend on the J.B. Hunt 360° platform and disposals,legacy system upgrades, higher FMS network facility costs, and increased building and computer rentals, and higher professional fees, partially offset by a reduction in charitable contributions.advertising expenses. Net loss from sale or disposal of assets was $2.8$2.3 million in 2018,2019, compared to a net loss of $1.7$2.8 million in 2017, primarily due to higher volume.2018. Insurance and claims expense increased 23.9%1.7% in 2018,2019, compared with 2017,2018, due to higher incident volume.

Net interest expense increased 34.3%42.4% in 2018,2019, due primarily to increased debt levels and higher effective interest rates on our debt.

Income tax expense increased 4.1%decreased 15.2% in first quarter 2018,2019, compared with 2017,2018, primarily due to increaseddecreased taxable earnings partially offset byand a lower effective income tax rate in first quarter 2018 due to the impactfavorable settlement of a state income tax audit during the Tax Cuts and Jobs Act of 2017.current period. Our effective income tax rate was 26.0%22.7% for the first quarter 2018,2019, compared to 28.0%26.0% in 2017. First quarter 2017 included a one-time after-tax benefit of $13.6 million for the claiming of federal research and development tax credits and domestic production tax deductions for the 2012 through 2016 tax years.2018. Our annual tax rate for 20182019 is expected to be 26.0%24.0%. 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 $262$251 million during the first three months of 2018,2019, compared with $286$262 million for the same period 2017.2018. Operating cash flows decreased due to the timing of general working capital activities, partially offset by increased earnings.activities. Net cash used in investing activities totaled $311 million in 2019, compared with $179 million in 2018, compared with $94 million in 2017.2018. The increase resulted from the purchase of Cory, which closed during first quarter 2019, and an increase in equipment purchases, in 2018 partially offset by an increase innet of proceeds from the sale of equipment, during the samecurrent period. Net cash provided by financing activities was $105 million in 2019, compared with net cash used in financing activities wasof $90 million in 2018, compared with $185 million in 2017.2018. This change resulted primarily from a decreasethe issuance of our $700 million of 3.875% senior notes due March 2026, partially offset by the full retirement of our $250 million of 2.40% senior notes that matured in treasury stock purchased in 2018.March 2019 and the pay down of our senior revolving line of credit to zero, during first quarter 2019.

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.equipment as well as periodic business acquisitions. 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 operating leases to acquire revenue equipment. For all debt facilities maturing in 2019, it is our intent to pay the entire outstanding balances in full, on or before the maturity dates, using our existing 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. The following table summarizes our expected obligations and commitments as of March 31, 20182019 (in millions):

Our net capital expenditures were approximately $179$212 million during the first three months of 2018,2019, compared with $91$179 million for the same period 2017.2018. 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 20182019 were primarily for tractors, additional intermodal containers and chassis, and other trailing equipment. We are currently committed to spend approximately $743$278 million during 20182019 and 2019.2020. We expect to spend in the range of $440$410 million to $460$430 million for net capital expenditures during the remainder of 2018.2019. On February 15, 2019, we completed our acquisition of substantially all of the assets and assumption of certain specified liabilities of the affiliated entities of Cory; see Note 11, Acquisitions, in our Condensed Consolidated Financial Statements. We used our existing revolving credit facility to finance this transaction and to provide any necessary liquidity for current and future operations. This acquisition did not have a material impact on our interest expense. The table above excludes $50.2$54.8 million of potential liabilities for uncertain tax positions, including interest and penalties, which are recorded on our Condensed Consolidated Balance Sheets. However, we are unable to reasonably estimate the ultimate timing of any settlements.

Off-Balance Sheet Arrangements

Our onlyWe had no off-balance sheet arrangements, other than our net purchase commitments of $278 million, as of March 31, 2018, were operating leases related to facility lease obligations.2019.

Risk Factors

You should refer to Item 1A of our Annual Report (Form 10-K) for the year ended December 31, 2017,2018, 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.