XML 103 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
LEASES
12 Months Ended
Dec. 31, 2019
Leases  
LEASES

NOTE F – LEASES

The Company leases, under finance and operating lease arrangements, certain facilities used primarily in the Asset-Based segment service center operations, certain revenue equipment used in the ArcBest segment operations, and certain other office equipment. Current operating leases have remaining terms of less than 10 years, some of which include one or more options to renew, with renewal option terms up to five years, and some of which include options to terminate the leases within the next two years. The right-of-use assets and lease liabilities as of December 31, 2019 do not assume the option to early terminate any of the Company’s leases, and all renewal options that have been exercised or are reasonably certain to be exercised as of December 31, 2019 are included in the right-of-use assets and lease liabilities. Variable lease cost for operating leases consists of subsequent changes in CPI index, rent payments that are based on usage, and other lease related payments which are subject to change and not considered fixed payments. All fixed lease and non-lease component payments are combined in determining the right-of-use asset and lease liability.

The components of operating lease expense were as follows:

December 31, 2019

(in thousands)

Operating lease expense

$

22,291

Variable lease expense

3,366

Sublease income

(324)

Total operating lease expense(1)

$

25,333

(1)Operating lease expense excludes short-term leases with a term of 12 months or less.

Rental expense for operating leases, excluding expenses related to leases with initial terms of less than one year, totaled $20.5 million, net of sublease income, for 2018 and 2017.

The operating cash flows from operating lease activity were as follows:

December 31, 2019

(in thousands)

Noncash change in operating right-of-use assets

$

20,439

Change in operating lease liabilities

(19,711)

Operating right-use-of-assets and lease liabilities, net

$

728

Cash paid for amounts included in the measurement of operating lease liabilities

$

(21,714)

Supplemental balance sheet information related to operating leases was as follows:

    

December 31, 2019

(in thousands, except lease term and discount rate)

Land and

Equipment

Total

Structures

and Others

Operating right-of-use assets (long-term)

$

68,470

$

67,227

$

1,243

Operating lease liabilities (current)

$

20,265

$

19,293

$

972

Operating lease liabilities (long-term)

 

52,277

52,008

269

Total operating lease liabilities

$

72,542

$

71,301

$

1,241

Weighted-average remaining lease term (in years)

5.3

Weighted-average discount rate

3.77%

Maturities of operating lease liabilities at December 31, 2019 were as follows:

Equipment

Land and

and

    

Total

    

Structures(1)

    

Other

  

 

(in thousands)

2020

$

22,576

$

21,578

$

998

2021

 

16,737

 

16,467

 

270

2022

 

12,253

 

12,253

 

2023

 

8,871

 

8,871

 

2024

 

6,275

 

6,275

 

Thereafter

 

13,309

 

13,309

 

Total lease payments

80,021

78,753

1,268

Less imputed interest

(7,479)

(7,452)

(27)

Total

$

72,542

$

71,301

$

1,241

(1)Excludes future minimum payments of $36.6 million for two operating leases for office space and a service center facility, that were executed but had not yet commenced as of December 31, 2019, which will be paid over terms of approximately 12 years. The Company has taken possession of the office space location as of January 1, 2020 and possession of the service center facility is expected in late-summer 2020, pending Lessor’s completion of construction to the premises.

The future minimum rental commitments, net of minimum rentals to be received under noncancelable subleases, as of December 31, 2018 for all noncancelable operating leases were as follows:

Equipment

Land and

and

    

Total

    

Structures(1)

    

Other

  

 

(in thousands)

2019

$

19,130

$

18,067

$

1,063

2020

 

14,620

 

13,676

 

944

2021

 

10,972

 

10,716

 

256

2022

 

7,125

 

7,125

 

2023

 

4,477

 

4,477

 

Thereafter

 

5,850

 

5,850

 

$

62,174

$

59,911

$

2,263

(1)Excludes future minimum payments for leases which were executed but had not yet commenced as of December 31, 2018 of approximately $21.0 million which will be paid over 10 years.