Note 10 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Text Block]

10.	Commitments and Contingencies

As of

December

31,

2016,

we had approximately

$36.7

million of obligations remaining under operating lease arrangements related primarily to terminal and support facilities. Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of

one

year) as of

December

31,

2016,

are approximately

$36.7

million, with payment streams as follows (in millions):

2017

$15.2;

2018

$9.4;

2019

$5.9;

2020

$4.3;

2021

$1.8;

and thereafter -

$0.1.

Total rent expense was

$44.1

million in

2016,

$39.5

million in

2015,

and

$39.1

million in

2014.

December

31,

2016,

we had outstanding commitments of approximately

$967

million, net of proceeds from sales or trade-ins during

2017

and

2018,

which is primarily related to the acquisition of containers, chassis, and tractors.

During

2016,

we issued financial standby letters of credit as a guaranty of our performance under certain operating agreements and self-insurance arrangements. If we default on our commitments under the agreements or other arrangements, we are required to perform under these guaranties. The undiscounted maximum amount of our obligation to make future payments in the event of defaults is approximately

$4.4

million as of

December

31,

2016.

We are a defendant in certain class-action lawsuits in which the plaintiffs are current and former California-based drivers who allege claims for unpaid wages, failure to provide meal and rest periods, and other items. During the

first

half of

2014,

the Court in the lead class-action granted judgment in our favor with regard to all claims. The plaintiffs have appealed the case to the Ninth Circuit Court of Appeals where it is currently pending. The overlapping claims in the remaining actions have been stayed pending a decision in the lead class-action case. We cannot reasonably estimate at this time the possible loss or range of loss, if any, that

may

arise from these lawsuits.

January,

2017,

we exercised our right to utilize the arbitration process to review the division of revenue collected beginning

May

2016,

as well as to clarify other issues, under our Joint Service Agreement with BNSF Railway Company (BNSF). BNSF has requested the same, and the arbitration process has commenced. BNSF provides a significant amount of rail transportation services to our JBI business segment. At this time, we are unable to reasonably predict the outcome of the arbitration, and, as such, no gain or loss contingency can be determined or recorded. Normal commercial business activity between the parties, including load

tendering,

load tracing, billing and payments, is expected to continue on a timely basis.

We are involved in certain other 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.