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.

Finance lease obligations are utilized to finance a portion of our revenue equipment and are entered into with certain finance companies who are

not

parties to our Credit Facility. The finance leases in effect at

March 31, 2020

terminate from

September 2020

through

November 2024

and contain guarantees of the residual value of the related equipment by us. As such, the residual guarantees are included in the related debt balance as a balloon payment at the end of the related term as well as included in the future minimum finance lease payments. These lease agreements require us to pay personal property taxes, maintenance, and operating expenses. Our operating lease obligations do

not

typically include residual value guarantees or material restrictive covenants.

A summary of our lease obligations at

March 31, 2020

are as follows:

(dollars in thousands)	Three Months Ended		Three Months Ended
	March 31, 2020		March 31, 2019

Finance lease cost:
Amortization of right-of-use assets	$	1,037	$	1,411
Interest on lease liabilities		247		227
Operating lease cost		6,602		6,182
Variable lease cost		158		-

Total lease cost	$	8,044	$	7,820

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		1,037		1,146
Operating cash flows from operating leases		6,760		6,182
Financing cash flows from finance leases		247		227
Right-of-use assets obtained in exchange for new operating lease liabilities		461		4,146
Weighted-average remaining lease term—finance leases			2.7 years
Weighted-average remaining lease term—operating leases			3.5 years
Weighted-average discount rate—finance leases				3.0	%
Weighted-average discount rate—operating leases				5.2	%

March 31, 2020

and

December 31, 2019,

right-of-use assets of

$53.3

million

and

$58.8

million for operating leases and

$31.8

million

and

$35.6

million for finance leases, respectively, 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, in the consolidated statement of operations. Amortization of finance leased assets is included in depreciation and amortization expense in the consolidated statement of operations.

Our future minimum lease payments as of

March 31, 2020

, are summarized as follows by lease category:

(in thousands)	Operating			Finance
2020 (1)	$	16,152		$	7,931
2021		18,087			8,179
2022		15,941			9,902
2023		7,214			6,775
2024		408			1,300
Thereafter		1,992			-
Total minimum lease payments	$	59,794		$	34,087
Less: amount representing interest		(4,985	)		(2,124	)
Present value of minimum lease payments	$	54,809		$	31,963
Less: current portion		(18,452	)		(7,062	)
Lease obligations, long-term	$	36,357		$	24,901

(

) Excludes the

three

months ended

March 31, 2020