<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(X) ANNUAL REPORT PURSUANT TO SECTION 15d OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996
( ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM ___________ TO ____________
COMMISSION FILE NUMBER 0-11757
A. FULL TITLE OF THE PLAN AND THE ADDRESS OF THE PLAN, IF DIFFERENT FROM
THAT OF THE ISSUER NAMED BELOW:
J.B. HUNT TRANSPORT SERVICES, INC. EMPLOYEE RETIREMENT PLAN
615 J.B. HUNT CORPORATE DRIVE
LOWELL, ARKANSAS 72745
B. NAMER OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE
ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE:
J.B. HUNT TRANSPORT SERVICES, INC.
615 J.B. HUNT CORPORATE DRIVE
LOWELL, ARKANSAS 72745
(501) 820-0000
<PAGE>
REQUIRED INFORMATION
The following financial statements prepared in accordance with the financial
reporting requirements of ERISA and exhibits are filed for the J.B. Hunt
Transport Services, Inc. Employee Retirement Plan:
FINANCIAL STATEMENTS AND SCHEDULES
Independent Auditors' Report
Statements of Net Assets Available for Benefits, December 31, 1996, and 1995
Statements of Changes in Net Assets Available for Benefits, Years Ended
December 31, 1996, and 1995
Notes to Financial Statements, December 31, 1996, and 1995
Item 27(a) - Schedule of Assets Held for Investment Purposes, December 31, 1996
Item 27(d) - Schedule of Reportable Transactions, Year Ended December 31, 1996
EXHIBIT
23 - Independent Auditors' Consent
SIGNATURES
THE PLAN. 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.
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
DATE: 06/25/97 BY: /s/ Jerry W. Walton
-------------- ---------------------------------
Jerry W. Walton
Executive Vice President Finance
Chief Officer of J.B. Hunt
Transport Services, Inc.
Administrator of the Retirement
Plan and member of Retirement Plan
Investment Committee
<PAGE>
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Financial Statements and Schedules
December 31, 1996 and 1995
(With Independent Auditors' Report Thereon)
<PAGE>
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
TABLE OF CONTENTS
Independent Auditors' Report
Statements of Net Assets Available for Benefits - December 31, 1996 and 1995
Statements of Changes in Net Assets Available for Benefits - Years ended
December 31, 1996 and 1995
Notes to Financial Statements
Item 27(a) - Schedule of Assets Held for Investment Purposes - December 31, 1996
Item 27(d) - Schedule of Reportable Transactions - Year ended December 31, 1996
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees
J.B. Hunt Transport Services, Inc.
Employee Retirement Plan:
We have audited the accompanying statements of net assets available for
benefits of J.B. Hunt Transport Services, Inc. Employee Retirement Plan
("Plan") as of December 31, 1996 and 1995, and the related statements of
changes in net assets available for benefits for the years then ended. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. 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 net assets available for benefits of J.B. Hunt
Transport Services, Inc. Employee Retirement Plan as of December 31, 1996 and
1995, and the changes in net assets available for benefits for the years then
ended in conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and reportable transactions are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements, but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental
schedules have been subjected to the auditing procedures applied in the audits
of the basic financial statements and, in our opinion, are fairly stated in
all material respects in relation to the basic financial statements taken as a
whole.
/s/ KPMG Peat Marwick, LLP
April 18, 1997
<PAGE>
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Statements of Net Assets Available for Benefits
December 31, 1996 and 1995
1996 1995
(NOTE 8) (NOTE 8)
-------- --------
Investments (note 3):
Guaranteed interest account $ 28,093,347 20,242,532
Mutual funds 37,365,983 26,835,629
Common stock - J.B. Hunt Transport Services, Inc. 4,039,927 3,464,904
Guaranteed investment contracts 2,524,559 8,176,705
Participant notes receivable (note 7) 7,542,885 6,347,110
------------- ----------
Total investments 79,566,701 65,066,880
------------- ----------
Receivables:
Contributions:
Employer 76,377 67,217
Employee 289,191 250,647
Accrued investment income 7,925 13,336
------------- ----------
Total receivables 373,493 331,200
------------- ----------
Total assets 79,940,194 65,398,080
Corrective distributions payable to
participants (note 6) 134,777 148,270
------------- ----------
Net assets available for
benefits (note 7) $ 79,805,417 65,249,810
------------- ----------
------------- ----------
See accompanying notes to financial statements.
<PAGE>
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Statements of Changes in Net Assets Available for Benefits
Years ended December 31, 1996 and 1995
1996 1995
(NOTE 8) (NOTE 8)
-------- --------
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of
investments (note 3) $ 4,018,600 4,542,954
Interest and dividends 2,829,239 2,431,668
------------ ----------
6,847,839 6,974,622
------------ ----------
Contributions:
Employers 3,427,217 3,368,851
Participants 14,134,686 14,326,941
------------ ----------
17,561,903 17,695,792
------------ ----------
Total additions 24,409,742 24,670,414
------------ ----------
Deductions from net assets attributed to:
Benefits paid to participants (note 7) 9,796,673 5,067,804
Administrative expenses 57,462 74,282
------------ ----------
Total deductions 9,854,135 5,142,086
------------ ----------
Increase in net assets available for
benefits (note 7) 14,555,607 19,528,328
Net assets available for benefits:
Beginning of year (note 7) 65,249,810 45,721,482
------------ ----------
End of year $ 79,805,417 65,249,810
------------ ----------
------------ ----------
See accompanying notes to financial statements.
<PAGE>
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Notes to Financial Statements
December 31, 1996 and 1995
(1) DESCRIPTION OF PLAN
The following brief description of the J.B. Hunt Transport Services, Inc.
("Company" or "Employer") Employee Retirement Plan ("Plan") is provided
for general information purposes only. Participants should refer to the
Plan agreement for a more complete description of the Plan's provisions.
(a) GENERAL
Effective January 1, 1995, the Company amended the Plan to become the J.B.
Hunt Transport Services, Inc. Employee Retirement Plan. The primary
features of the amendment were to terminate the profit-sharing fund and
to introduce additional investment options available to participants for
401(k) funds. Account balances in the profit-sharing fund were transferred
as directed by the participants to one or more of the existing funds.
The purpose of the Plan is to provide additional incentive and retirement
security for eligible employees of the Company by permitting contributions
to the Plan that are tax deferred under Section 401(k) of the Internal
Revenue Code. The Plan covers all participants from the prior plan on
December 31, 1994 and each current employee of the Company as of the first
day of the payroll period coincident with or immediately following the
date he or she has completed one year of eligibility service. The Plan
is subject to the provisions of the Employee Retirement Income Security
Act of 1974 ("ERISA").
(b) CONTRIBUTIONS
Each year, participants may defer up to 16% of pretax annual compensation,
as defined in the Plan agreement (not to exceed limits determined under
Section 415(c) of the Internal Revenue Code). The Company contributes
100% of the first one percent of base compensation that a participant
contributes to the Plan. Additionally, the Company contributes 50% of
the next two percent of base compensation that a participant contributes
to the Plan. Additional amounts may be contributed at the option of the
Company's board of directors.
Effective January 1, 1997, the Plan amended the Employer matching
contributions to an amount equal to fifty percent (50%) of each
participant's salary reduction contributions, limited to the first six
percent (6%) of each participant's salary reduction contributions for
the plan year.
(c) PARTICIPANT'S ACCOUNTS
Each participant's account is credited with the participant's contribution
and allocations of (a) the Company's contribution and (b) Plan earnings.
Forfeited balances of terminated participants' nonvested accounts are used
to reduce future Company contributions or are reallocated to existing
participants' accounts. Forfeitures for the years ended December 31, 1996
and 1995 amounted to approximately $344,000 and $372,000, respectively,
and were reallocated to accounts of existing participants in the subsequent
fiscal year.
(Continued)
<PAGE>
2
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Notes to Financial Statements
(d) VESTING
Participants are immediately vested in their contributions plus actual
earnings thereon. Vesting in the Company's matching and discretionary
contribution portion of their accounts plus actual earnings thereon is
based on years of service. Upon a participant's normal retirement,
disability or death, he or she becomes fully vested in the Plan. If a
participant terminates employment for any other reason on or after being
credited with at least five years of vesting service, he or she becomes
fully vested in the Plan. Prior to the completion of five years of
vesting service, the vesting percentages are as follows: 0 - 3 years - 0%;
3 - 4 years - 50%; 4 - 5 years - 75%.
(e) INVESTMENT OPTIONS
Upon enrollment in the Plan, a participant may direct employee
contributions in any of the following investment options:
GUARANTEED INTEREST ACCOUNT - A group annuity insurance product
issued by Prudential Insurance Company of America ("Prudential").
Contributions are invested in fixed income securities having short
to intermediate maturities with the objective of providing stable,
competitive interest rates based on current market conditions.
J.B. HUNT COMPANY STOCK FUND - Contributions are invested exclusivel
in J.B. Hunt Transport Services, Inc. common stock.
TRANSFER GUARANTEED FUND - Guaranteed investment contracts with the
Lincoln National Life Insurance Company.
MUTUAL FUNDS
a. Government Income Fund - Prudential Management Fund, Inc.
("PMF") is the fund manager and invests in intermediate and
long-term U.S. Government and agency obligations with the
objective of providing high current income.
b. Money Mart Assets - PMF is the fund manager and invests in
U.S. Government and agency obligations, bank certificates of
deposit and commercial paper with the objective of providing
maximum current income consistent with stability of capital
and the maintenance of liquidity.
c. Jennison Growth Fund - PMF is the fund manager and invests in
equity securities of companies that exceed $1 billion in
market capitalization with the objective of providing long-
term growth of capital. Jennison Associates Capital Corp.
("Jennison") furnishes investment advisory services under a
Subadvisory Agreement with PMF.
(Continued)
<PAGE>
3
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Notes to Financial Statements
d. Active Balanced Fund - Jennison is the fund manager and invests
in a mix of equity securities, investment grade income
securities and money market instruments with the objective of
providing total returns approaching those of an equity
portfolio but with less risk.
e. International Stock Fund - Mercator Asset Management, L.P.
("Mercator") is the fund manager and invests in equity
securities of companies that are incorporated, organized, or
that do business outside of the United States with the
objective of providing long-term growth of capital.
f. Longleaf Partners Fund - Southeastern Asset Management ("SAM")
is the fund manager and invests in common stocks of a limited
number of companies which SAM believes to have unrecognized
intrinsic value with the objective of providing long-term
capital appreciation.
During 1996, funds previously invested in a Growth Stock Fund, Income Fund
and Money Market Fund were transferred into the Jennison Growth Fund,
Government Income Fund and Money Mart Assets Fund, respectively.
Effective January 1, 1997, the following two additional mutual funds were
available for participant investments:
a. Stock Index Fund - Prudential Diversified Investment Strategies
is the fund manager and invests in a broad mix of equity
securities that provide investment results that correspond to
the price and yield performance of the Standard & Poor's 500
Composite Price Index.
b. New Opportunities Fund - Putman Investment Management, Inc. is
the fund manager and invests in debt and equity securities with
the objective of providing long-term capital appreciation.
(f) PARTICIPANT NOTES RECEIVABLE
Participants may borrow from their fund accounts a minimum of $1,000 up to
a maximum equal to the lesser of $50,000 or 50 percent of their vested
account balance. Loan terms range from 1 - 5 years or up to 20 years
for the purchase of a primary residence. The loans are secured by the
balance in the participant's account and bear interest at the prime rate,
as shown in the Wall Street Journal, plus one percent, (9.25% at
December 31, 1996). Principal and interest is paid ratably through monthly
payroll deductions.
(Continued)
<PAGE>
4
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Notes to Financial Statements
(g) PAYMENT OF BENEFITS
On termination of service due to normal retirement, disability or death,
a participant will receive a lump-sum amount equal to the value of the
participant's vested interest in his or her account.
At December 31, 1996 and 1995, approximately $5,615,000 and $4,710,000,
respectively, of the net assets available for benefits as shown on the
statements of net assets available for benefits are allocated to accounts
of terminated employees who have withdrawn from participation in the Plan.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) BASIS OF PRESENTATION
The accompanying financial statements of the Plan are prepared under
the accrual method of accounting.
(b) INVESTMENT VALUATION
The Plan's investments are valued at fair value on December 31, 1996
and 1995. Purchases and sales of securities are recorded on a
trade-date basis. Shares of mutual funds are valued at quoted market
prices which represent the net asset value of shares held by the Plan
at year-end. Guaranteed investment contracts with insurance companies
are stated at the contract values as reported to the Plan by the
insurance companies, which approximates fair value. Participant notes
receivable are valued at cost which approximates fair value.
(c) PAYMENT OF BENEFITS
Benefits are recorded when paid. Defaults on participant notes receivable
are recorded as benefits paid.
(d) USE OF ESTIMATES
Management of the Plan has made and used estimates and assumptions relating
to the reporting of assets and liabilities and additions and deductions to
prepare these financial statements in conformity with generally accepted
accounting principles. Actual results could differ from those estimates.
(Continued)
<PAGE>
5
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Notes to Financial Statements
(3) INVESTMENTS
The following table presents the fair value of investments. Investments
representing 5% or more of the Plan's net assets are separately
identified:
<TABLE>
1996 1995
------------------------ --------------------------
Number of Number of
shares or shares or
principal Fair principal Fair
amount value amount value
------ ----- ------ -----
<S> <C> <C> <C> <C>
Guaranteed Interest Account - $ 28,093,347 - $ 20,242,532
------------ ------------
Mutual funds:
Longleaf Partners Fund 677,675 15,484,869 618,667 13,084,811
Jennison Growth Fund 581,227 6,643,428 - -
Active Balanced Fund 424,875 5,323,680 342,835 4,220,297
International Stock Fund 366,418 6,295,067 274,889 4,128,837
Other 3,618,939 5,401,684
------------ ------------
37,365,983 26,835,629
------------ ------------
Common stock - J.B. Hunt
Transport Services, Inc. 288,566 4,039,927 206,860 3,464,904
Participant notes receivable - 7,542,885 - 6,347,110
------- ------------ ------- ------------
Total $ 77,042,142 $ 56,890,175
------------ ------------
------------ ------------
</TABLE>
The following represents guaranteed investment contracts which are included
in the financial statements at contract values as reported to the Plan by
the insurance companies:
1996 1995
---- ----
Pacific Mutual Life Insurance Company, (Policy
#G-26059), 2.38% $ - 4,599,670
Lincoln National Life, (Policy #59938), 6.40% 1,636,671 2,324,173
Lincoln National Life, (Policy #59677), 6.40% 887,888 1,252,862
------------ ---------
$ 2,524,559 8,176,705
------------ ---------
------------ ---------
During 1996 and 1995, the Plan's investments (including investments bought,
sold, and held during the year) appreciated (depreciated) in value as
follows:
1996 1995
---- ----
Mutual funds $ 4,695,535 4,159,622
Common stock (676,935) 383,332
------------ ---------
$ 4,018,600 4,542,954
------------ ---------
------------ ---------
(Continued)
<PAGE>
6
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Notes to Financial Statements
(4) PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and
to terminate the Plan subject to the provisions of ERISA. In the event
of Plan termination, participants will become 100 percent vested in their
accounts.
(5) RELATED PARTY TRANSACTIONS
Certain plan investments are shares of mutual funds managed by Jennison,
Mercator, PMF and SAM. Prudential Dedicated Contribution Services, Inc.
performs recordkeeping responsibilities for the Plan and Prudential Trust
Company is the Plan trustee.
(6) FEDERAL INCOME TAXES
The Internal Revenue Service has determined and informed the Company by
letter dated December 4, 1995 that the Plan and related trust are
designed in accordance with applicable sections of the Internal Revenue
Code ("IRC"). The Plan administrator believes that the Plan is currently
being operated in compliance with the applicable requirements of the IRC.
Discrimination tests for Plan year 1996, as described in Treasury
Regulations Section 1.401(m), have been completed subsequent to
December 31, 1996. As a result, approximately $135,000 of corrective
distributions are required to be made to maintain the Plan's
qualification under Section 401(a) and exemption from Federal income
taxes under Section 501(a). The Plan's administrator intends to make
such corrective distributions to preserve the Plan's tax exempt status.
Discrimination tests for Plan year 1995, as previously described, were
completed subsequent to December 31, 1995. As a result, approximately
$148,000 of corrective distributions were made for the 1995 Plan year in
order to maintain the Plan's qualification under Section 401(a) and
exemption from Federal income taxes under Section 501(a).
(7) PRIOR PERIOD ADJUSTMENT
During 1995 the Plan did not record defaults on participant loans as
benefits paid to participants. Accordingly, the 1995 financial
statements have been restated to reflect as additional benefits paid the
$469,864 of loan defaults. The effect on previously reported amounts in
the 1995 financial statements is as follows:
PREVIOUSLY
REPORTED RESTATED
-------- --------
Participants notes receivable $ 6,816,974 6,347,110
Benefits paid to participants 4,597,940 5,067,804
Increase in net assets available for benefits 19,998,192 19,528,328
Net assets at end of year 65,719,674 65,249,810
(Continued)
<PAGE>
7
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Notes to Financial Statements
(8) 401(k) FUNDS
Participants have the option to direct their investments into the following
funds. An analysis of net assets available for benefits of each fund as
of December 31, 1996 and 1995 is presented below:
<TABLE>
GUARANTEED J.B. HUNT LONGLEAF ACTIVE INTERNATIONAL TRANSFER MONEY
INTEREST COMPANY PARTNERS BALANCED STOCK GUARANTEED MART
ACCOUNT STOCK FUND FUND FUND FUND FUND ASSETS
------- ---------- ---- ---- ---- ---- ------
<S> <C> <C> <C> <C> <C> <C> <C>
December 31, 1996:
Investments:
Guaranteed interest account $ 28,093,347 - - - - - -
Mutual funds - - 15,484,869 5,323,680 6,295,067 - 1,658,102
Common stock - 4,039,927 - - - - -
Guaranteed investment contracts - - - - - 2,524,559 -
Participant notes receivable 2,657,256 674,755 1,576,390 412,247 401,464 1,603,055 9,193
------------ --------- ---------- --------- --------- --------- ---------
Total investments 30,750,603 4,714,682 17,061,259 5,735,927 6,696,531 4,127,614 1,667,295
------------ --------- ---------- --------- --------- --------- ---------
Receivables:
Contributions 142,592 20,505 78,596 27,021 31,952 12,813 8,415
Accrued investment income 3,090 444 1,704 586 693 278 182
------------ --------- ---------- --------- --------- --------- ---------
Total receivables 145,682 20,949 80,300 27,607 32,645 13,091 8,597
------------ --------- ---------- --------- --------- --------- ---------
Total assets 30,896,285 4,735,631 17,141,559 5,763,534 6,729,176 4,140,705 1,675,892
Corrective distributions payable
to participants 134,777 - - - - - -
------------ --------- ---------- --------- --------- --------- ---------
Net assets available
for benefits $ 30,761,508 4,735,631 17,141,559 5,763,534 6,729,176 4,140,705 1,675,892
------------ --------- ---------- --------- --------- --------- ---------
------------ --------- ---------- --------- --------- --------- ---------
GOVERNMENT JENNISON
INCOME GROWTH
FUND FUND TOTAL
---- ---- -----
<C> <C> <C>
December 31, 1996:
Investments:
Guaranteed interest account - - 28,093,347
Mutual funds 1,960,837 6,643,428 37,365,983
Common stock - - 4,039,927
Guaranteed investment contracts - - 2,524,559
Participant notes receivable 35,393 173,132 7,542,885
--------- --------- ----------
Total investments 1,996,230 6,816,560 79,566,701
--------- --------- ----------
Receivables:
Contributions 9,953 33,721 365,568
Accrued investment income 216 732 7,925
--------- --------- ----------
Total receivables 10,169 34,453 373,493
--------- --------- ----------
Total assets 2,006,399 6,851,013 79,940,194
Corrective distributions payable
to participants - - 134,777
--------- --------- ----------
Net assets available
for benefits 2,006,399 6,851,013 79,805,417
--------- --------- ----------
--------- --------- ----------
</TABLE>
(Continued)
<PAGE>
8
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Notes to Financial Statements
<TABLE>
GUARANTEED J.B. HUNT LONGLEAF ACTIVE INTERNATIONAL
INTEREST COMPANY PARTNERS BALANCED STOCK
ACCOUNT STOCK FUND FUND FUND FUND
------- ---------- ---- ---- ----
<S> <C> <C> <C> <C> <C>
December 31, 1995:
Investments:
Guaranteed interest account $ 20,242,532 - - - -
Mutual funds - - 13,084,811 4,220,297 4,128,837
Common stock - 3,464,904 - - -
Guaranteed investment contracts - - - - -
Participant notes receivable 2,322,156 505,823 1,296,326 314,410 318,428
------------ --------- ---------- --------- ---------
Total investments 22,564,688 3,970,727 14,381,137 4,534,707 4,447,265
------------ --------- ---------- --------- ---------
Receivables:
Contributions 99,183 21,558 41,644 28,326 42,541
Accrued investment income 5,053 677 1,681 970 1,833
------------ --------- ---------- --------- ---------
Total receivables 104,236 22,235 43,325 29,296 44,374
------------ --------- ---------- --------- ---------
Total assets 22,668,924 3,992,962 14,424,462 4,564,003 4,491,639
Corrective distributions payable
to participants 148,270 - - - -
------------ --------- ---------- --------- ---------
Net assets available
for benefits $ 22,520,654 3,992,962 14,424,462 4,564,003 4,491,639
------------ --------- ---------- --------- ---------
------------ --------- ---------- --------- ---------
GROWTH MONEY TRANSFER
STOCK INCOME MARKET GUARANTEED
FUND FUND FUND FUND TOTAL
---- ---- ---- ---- -----
December 31, 1995:
Investments:
Guaranteed interest account - - - - 20,242,532
Mutual funds 3,241,404 1,255,445 904,835 - 26,835,629
Common stock - - - - 3,464,904
Guaranteed investment contracts - - - 8,176,705 8,176,705
Participant notes receivable 47,543 24,440 20,301 1,497,683 6,347,110
------------ --------- ---------- --------- ---------
Total investments 3,288,947 1,279,885 925,136 9,674,388 65,066,880
------------ --------- ---------- --------- ---------
Receivables:
Contributions 47,906 20,645 16,061 - 317,864
Accrued investment income 1,628 760 708 26 13,336
------------ --------- ---------- --------- ---------
Total receivables 49,534 21,405 16,769 26 331,200
------------ --------- ---------- --------- ---------
Total assets 3,338,481 1,301,290 941,905 9,674,414 65,398,080
Corrective distributions payable
to participants - - - - 148,270
------------ --------- ---------- --------- ---------
Net assets available
for benefits 3,338,481 1,301,290 941,905 9,674,414 65,249,810
------------ --------- ---------- --------- ---------
------------ --------- ---------- --------- ---------
</TABLE>
(Continued)
<PAGE>
9
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Notes to Financial Statements
An analysis of changes in net assets available for benefits for each fund for
the years ended December 31, 1996 and 1995 is presented below:
<TABLE>
J.B. Hunt
Guaranteed Company Longleaf Active International Growth
Interest Stock Partners Balanced Stock Stock Income
Account Fund Fund Fund Fund Fund Fund
----------- --------- ---------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
December 31, 1996:
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ -- (676,935) 2,487,602 370,610 766,734 497,124 --
Interest and dividends 1,778,558 79,031 318,903 194,834 168,890 57,294 18,378
----------- --------- ---------- --------- --------- ---------- ----------
1,778,558 (597,904) 2,806,505 565,444 935,624 554,418 18,378
----------- --------- ---------- --------- --------- ---------- ----------
Contributions:
Employer 1,153,036 255,884 387,642 296,690 417,068 364,964 162,582
Participants 4,370,573 975,845 1,825,625 1,281,276 1,757,985 1,605,974 634,888
----------- --------- ---------- --------- --------- ---------- ----------
5,523,609 1,231,729 2,213,267 1,577,966 2,175,053 1,970,938 797,470
----------- --------- ---------- --------- --------- ---------- ----------
Total additions 7,302,167 633,825 5,019,772 2,143,410 3,110,677 2,525,356 815,848
Deductions from net assets
attributed to:
Benefits paid to participants 3,552,629 408,727 2,169,445 670,616 821,344 388,230 148,370
Administrative expenses 27,888 14,577 19,757 10,691 10,079 6,795 2,762
----------- --------- ---------- --------- --------- ---------- ----------
Total deductions 3,580,517 423,304 2,189,202 681,307 831,423 395,025 151,132
----------- --------- ---------- --------- --------- ---------- ----------
Transfers 4,463,428 532,148 (113,473) (262,572) (41,717) (5,468,812) (1,966,006)
----------- --------- ---------- --------- --------- ---------- ----------
Increase (decrease) in net assets
available for benefits 8,240,854 742,669 2,717,097 1,199,531 2,237,537 (3,338,481) (1,301,290)
Net assets available for benefits
at beginning of year 22,520,654 3,992,962 14,424,462 4,564,003 4,491,639 3,338,481 1,301,290
----------- --------- ---------- --------- --------- ---------- ----------
Net assets at end of year $30,761,508 4,735,631 17,141,559 5,763,534 6,729,176 -- --
----------- --------- ---------- --------- --------- ---------- ----------
----------- --------- ---------- --------- --------- ---------- ----------
<CAPTION>
Money Transfer Money Government Jennison
Market Guaranteed Mart Income Growth
Fund Fund Assets Fund Fund Total
---------- ---------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
December 31, 1996:
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments -- 260,766 -- 34,470 278,229 4,018,600
Interest and dividends 66,941 45,823 29,951 45,394 25,242 2,829,239
---------- ---------- --------- --------- --------- ----------
66,941 306,589 29,951 79,864 303,471 6,847,839
---------- ---------- --------- --------- --------- ----------
Contributions:
Employer 137,128 -- 50,518 55,845 145,860 3,427,217
Participants 544,943 16,249 206,392 228,305 686,631 14,134,686
---------- ---------- --------- --------- --------- ----------
682,071 16,249 256,910 284,150 832,491 17,561,903
---------- ---------- --------- --------- --------- ----------
Total additions 749,012 322,838 286,861 364,014 1,135,962 24,409,742
Deductions from net assets
attributed to:
Benefits paid to participants 141,779 1,066,283 88,214 124,331 216,705 9,796,673
Administrative expenses 4,515 2,258 3,033 3,207 7,676 57,462
---------- ---------- --------- --------- --------- ----------
Total deductions 146,294 1,068,541 91,247 127,538 224,381 9,854,135
---------- ---------- --------- --------- --------- ----------
Transfers (1,544,623) (4,788,007) 1,480,278 1,769,923 5,939,432 --
---------- ---------- --------- --------- --------- ----------
Increase (decrease) in net assets
available for benefits (941,905) (5,533,709) 1,675,892 2,006,399 6,851,013 14,555,607
Net assets available for benefits
at beginning of year 941,905 9,674,414 -- -- -- 65,249,810
---------- ---------- --------- --------- --------- ----------
Net assets at end of year -- 4,140,705 1,675,892 2,006,399 6,851,013 79,805,417
---------- ---------- --------- --------- --------- ----------
---------- ---------- --------- --------- --------- ----------
</TABLE>
(Continued)
<PAGE>
<TABLE>
10
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Notes to Financial Statements
Guaranteed J.B. Hunt Longleaf Active International
Interest Company Partners Balanced Stock
Account Stock Fund Fund Fund Fund
----------- ---------- ---------- --------- -------------
<S> <C> <C> <C> <C> <C>
December 31, 1995:
Additions to net assets attributed to:
Investment income:
Net appreciation in fair
value of investments $ - 383,332 2,885,840 598,590 346,375
Interest and dividends 1,408,471 41,392 179,914 143,490 98,338
----------- --------- ---------- --------- ----------
1,408,471 424,724 3,065,754 742,080 444,713
----------- --------- ---------- --------- ----------
Contributions:
Employer 1,243,167 220,762 340,615 291,631 484,907
Participants 5,007,771 891,120 1,598,194 1,285,447 2,080,136
----------- --------- ---------- --------- ----------
6,250,938 1,111,882 1,938,809 1,577,078 2,565,043
----------- --------- ---------- --------- ----------
Total additions 7,659,409 1,536,606 5,004,563 2,319,158 3,009,756
----------- --------- ---------- --------- ----------
Deductions from net assets attributed to:
Benefits paid to participants 1,733,712 179,489 982,433 347,207 384,428
Administrative expenses 74,356 53 800 698 186
----------- --------- ---------- --------- ----------
Total deductions 1,808,068 179,542 983,233 347,905 384,614
----------- --------- ---------- --------- ----------
Transfers 2,103,597 929,528 (320,619) (28,162) (1,157,783)
----------- --------- ---------- --------- ----------
Increase (decrease) in net assets
available for benefits 7,954,938 2,286,698 3,702,311 1,944,487 1,467,359
Transfer of assets at January 1, 1995,
including $5,522,291 transferred
from profit sharing plan 14,565,716 1,706,264 10,722,151 2,619,516 3,024,280
----------- --------- ---------- --------- ----------
Net assets at end of year $22,520,654 3,992,962 14,424,462 4,564,003 4,491,639
----------- --------- ---------- --------- ----------
----------- --------- ---------- --------- ----------
Growth Money Transfer
Stock Income Market Guaranteed
Fund Fund Fund Fund Total
--------- --------- --------- ------------ ----------
<S> <C> <C> <C> <C> <C>
December 31, 1995:
Additions to net assets attributed to:
Investment income:
Net appreciation in fair
value of investments 276,278 52,539 - - 4,542,954
Interest and dividends 32,856 56,129 42,850 428,228 2,431,668
--------- --------- --------- ----------- ----------
309,134 108,668 42,850 428,228 6,974,622
--------- --------- --------- ----------- ----------
Contributions:
Employer 365,013 232,720 190,015 21 3,368,851
Participants 1,656,734 991,677 815,784 78 14,326,941
--------- --------- --------- ----------- ----------
2,021,747 1,224,397 1,005,799 99 17,695,792
--------- --------- --------- ----------- ----------
Total additions 2,330,881 1,333,065 1,048,649 428,327 24,670,414
--------- --------- --------- ----------- ----------
Deductions from net assets attributed to:
Benefits paid to participants 94,172 69,553 78,142 1,198,668 5,067,804
Administrative expenses 854 227 422 212 74,282
--------- --------- --------- ----------- ----------
Total deductions 95,026 69,780 78,564 1,198,880 5,142,086
--------- --------- --------- ----------- ----------
Transfers 1,102,626 27,508 (28,180) (2,628,515) -
--------- --------- --------- ----------- ----------
Increase (decrease) in net assets
available for benefits 3,338,481 1,290,793 941,905 (3,398,644) 19,528,328
Transfer of assets at January 1, 1995,
including $5,522,291 transferred
from profit sharing plan - 10,497 - 13,073,058 45,721,482
--------- --------- --------- ----------- ----------
Net assets at end of year 3,338,481 1,301,290 941,905 9,674,414 65,249,810
--------- --------- --------- ----------- ----------
--------- --------- --------- ----------- ----------
</TABLE>
<PAGE>
SCHEDULE 1
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Item 27(a) - Schedule of Assets Held for Investment Purposes
December 31, 1996
<TABLE>
PAR VALUE
OR NUMBER CURRENT
ISSUER OR BORROWER DESCRIPTION OF SHARES COST VALUE
------------------ ----------- --------- ---- -----
<S> <C> <C> <C> <C>
*The Prudential Insurance Company Guaranteed Interest Account - $ 28,093,347 28,093,347
------------ ----------
Longleaf Partners Mutual Fund Mutual funds:
Longleaf Partners Fund 677,675 13,162,262 15,484,869
*Prudential Mutual Funds Jennison Growth Fund 581,227 6,385,703 6,643,428
Active Balanced Fund 424,875 4,982,791 5,323,680
International Stock Fund 366,418 5,550,928 6,295,067
Money Mart Assets 1,658,102 1,655,331 1,658,102
Government Income Fund 222,065 1,929,159 1,960,837
--------- ------------ ----------
33,666,174 37,365,983
------------ ----------
*J.B. Hunt Transport Services, Inc. Common stock - J.B. Hunt
Transport Services, Inc. 288,566 4,671,026 4,039,927
--------- ------------ ----------
Guaranteed investment contracts:
Lincoln National Life Lincoln National Life, (Policy
#59938), 6.40% 1,636,671 1,636,671 1,636,671
Lincoln National Life Lincoln National Life, (Policy
#59677), 6.40% 887,888 887,888 887,888
--------- ------------ ----------
2,524,559 2,524,559
------------ ----------
Participant notes receivable,
9.25% - 10.00% - 7,542,885 7,542,885
--------- ------------ ----------
*Parties-in-interest $ 76,497,991 79,566,701
------------ ----------
------------ ----------
</TABLE>
See accompanying independent auditors' report.
<PAGE>
SCHEDULE 2
J.B. HUNT TRANSPORT SERVICES, INC.
EMPLOYEE RETIREMENT PLAN
Item 27(d) - Schedule of Reportable Transactions
Year ended December 31, 1996
<TABLE>
EXPENSES CURRENT
INCURRED VALUE ON
PURCHASE SELLING LEASE WITH TRANSACTION NET
DESCRIPTION PRICE PRICE RENTAL TRANSACTION COST DATE GAIN
----------- ----- ----- ------ ----------- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Guaranteed Interest Account:
Purchases $ 12,100,938 - - - 12,100,938 12,100,938 -
Sales - 4,250,123 - - 4,250,123 4,250,123 -
Mutual Funds:
Growth Stock Fund:
Purchases 2,888,104 - - - 2,888,104 2,888,104 -
Sales - 6,388,807 - - 5,888,817 6,388,807 499,990
Jennison Growth Fund:
Purchases 6,790,314 - - - 6,790,314 6,790,314 -
Sales - 425,115 - - 404,611 425,115 20,504
Longleaf Partners Fund:
Purchases 4,128,234 - - - 4,128,234 4,128,234 -
Sales - 2,776,403 - - 2,050,435 2,776,403 725,968
</TABLE>
See accompanying independent auditors' report.
<PAGE>
EXHIBIT 23
KPMG Peat Marwick, LLP
200 West Capitol Avenue
Suite 1400
Little Rock, AR 72201-3605
The Board of Directors
J.B. Hunt Transport Services, Inc.:
We consent to incorporation by reference in the Registration Statement (No.
33-57127) on Form S-8 of J.B. Hunt Transport Services, Inc. of our report
dated April 18, 1997, relating to the statements of net assets available for
benefits of J.B. Hunt Transport Services, Inc. Employee Retirement Plan as
of December 31, 1996 and 1995, and the related statements of changes in net
assets available for benefits for the years then ended and related
supplemental schedules, which report appears in the December 31, 1996, annual
report on Form 11-K of J.B. Hunt Transport Services, Inc. Employee Retirement
Plan.
/s/ KPMG Peat Marwick LLP
--------------------------
/s/ KPMG Peat Marwick LLP
Little Rock, Arkansas
June 23, 1997
