Note

Leases

We finance a portion of our revenue equipment, office and terminal properties, computer and office equipment, and other equipment using leases. A number of these leases include

one

or more options to renew or extend the agreements beyond the expiration date or to terminate the agreement prior to the lease expiration date, and such options are included in or excluded from the lease term, respectively, when those options are reasonably certain to be exercised. Our lease obligations do

not

typically include residual value guarantees or material restrictive covenants A summary of our lease obligations at

March 31, 2019

are as follows:

(dollars in thousands)		Three months ended
		March 31, 2019
Lease Cost
Finance lease cost:
Amortization of right-of-use assets		1,411
Interest on lease liabilities		227
Operating lease cost		6,182
Variable lease cost		-

Total lease cost		$ 7,820

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		1,146
Operating cash flows from operating leases		6,182
Financing cash flows from finance leases		227
Right-of-use assets obtained in exchange for new finance lease liabilities		-
Right-of-use assets obtained in exchange for new operating lease liabilities		4,146
Weighted-average remaining lease term—finance leases		3.5 years
Weighted-average remaining lease term—operating leases		3.6 years
Weighted-average discount rate—finance leases		3.0%
Weighted-average discount rate—operating leases		4.2%

Right-of-use assets of

$39.1

million

for operating leases and

$55.4

million

for finance leases are included in net property and equipment in our Condensed Consolidated Balance Sheets. Operating lease right-of-use asset amortization is included in revenue equipment rentals and purchased transportation, communication and utilities, and general supplies and expenses, depending on the underlying asset.

Our future minimum lease payments as of

March 31, 2019

are summarized as follows by lease category:

(in thousands)	Operating	Finance
2019 (1)	$ 12,521	$ 7,987
2020	12,551	7,966
2021	8,765	8,226
2022	6,567	10,003
2023	631	6,842
Thereafter	2,397	1,330
Total minimum lease payments	$ 43,432	$ 42,354
Less: amount representing interest	(3,269)	(3,233)
Present value of minimum lease payments	$ 40,163	$ 39,121
Less: current portion	(14,622)	(6,898)
Lease obligations, long-term	$ 25,541	$ 32,223

(

) Excludes the

three

months ended

March 31, 2019