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Note 8 - Lease Obligations

6 Months Ended

Jun. 30, 2021

Note 8.

Lease Obligations

The finance leases in effect at June 30, 2021 terminate from September 2021 through November 2023 and contain guarantees of the residual value of the related equipment by us.

A summary of our lease obligations at June 30, 2021 and 2020 are as follows:

(dollars in thousands)	Three Months Ended			Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2021			June 30, 2020		June 30, 2021		June 30, 2020
Finance lease cost:
Amortization of right-of-use assets	$	915		$	968	$	1,922	$	2,005
Interest on lease liabilities		159			278		333		525
Operating lease cost		5,853			7,445		11,764		14,047
Variable lease cost		28			156		91		314
Total lease cost	$	6,955		$	8,847	$	14,110	$	16,891

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		915			968		1,922		205
Operating cash flows from operating leases		4,757			7,601		9,532		14,361
Financing cash flows from finance leases		159			275		333		525
Right-of-use assets obtained in exchange for new operating lease liabilities		2,305			2,176		2,530		2,637
Weighted-average remaining lease term—finance leases	1.3 years
Weighted-average remaining lease term—operating leases	2.4 years
Weighted-average discount rate—finance leases		4.3	%
Weighted-average discount rate—operating leases		6.0	%

As of June 30, 2021, and December 31, 2020, right-of-use assets of $31.4 million and $37.4 million for operating leases and $25.2 million and $29.4 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 condensed consolidated statement of operations. Amortization of finance leased assets is included in depreciation and amortization expense in the condensed consolidated statement of operations.

Our future minimum lease payments as of June 30, 2021, are summarized as follows by lease category:

(in thousands)	*Operating*			*Finance*
2021 (1)	$	9,274		$	6,444
2022		15,954			7,137
2023		7,203			1,423
2024		411			-
2025		382			-
Thereafter		2,221			-
Total minimum lease payments	$	35,445		$	15,004
Less: amount representing interest		(3,076	)		(42	)
Present value of minimum lease payments	$	32,369		$	14,962
Less: current portion		(16,595	)		(6,214	)
Lease obligations, long-term	$	15,774		$	8,748

⁽¹⁾ Excludes the six months ended June 30, 2021.