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Note 8 - Lease Obligations

6 Months Ended

Jun. 30, 2022

Note 8.

Lease Obligations

The finance leases in effect at June 30, 2022 terminate from August 2022 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, 2022 and 2021 are as follows:

(dollars in thousands)	Three Months Ended			Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2022			June 30, 2021		June 30, 2022		June 30, 2021
Finance lease cost:
Amortization of right-of-use assets	$	632		$	915	$	1,320	$	1,922
Interest on lease liabilities		98			159		222		333
Operating lease cost		7,210			5,853		12,647		11,764
Variable lease cost		88			28		109		91
Total lease cost	$	8,028		$	6,955	$	14,298	$	14,110

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		98			159		222		333
Operating cash flows from operating leases		7,298			5,881		12,756		11,855
Financing cash flows from finance leases		3,002			848		4,295		1,481
Right-of-use assets obtained in exchange for new finance lease liabilities		-			-		458		-
Right-of-use assets obtained in exchange for new operating lease liabilities		16,999			2,305		17,052		2,530
Weighted-average remaining lease term—finance leases (in years)		1.4
Weighted-average remaining lease term—operating leases (in years)		5.0
Weighted-average discount rate—finance leases		5.5	%
Weighted-average discount rate—operating leases		9.4	%

As of June 30, 2022, and December 31, 2021, right-of-use assets of $43.3 million and $35.7 million for operating leases and $5.6 million and $23.2 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, 2022, are summarized as follows by lease category:

(in thousands)	*Operating*			*Finance*
2022 (1)	$	9,817		$	5,054
2023		14,333			1,509
2024		7,911			108
2025		5,660			108
2026		4,356			108
Thereafter		14,346			693
Total minimum lease payments	$	56,423		$	7,580
Less: amount representing interest		(11,547	)		(594	)
Present value of minimum lease payments	$	44,876		$	6,986
Less: current portion		(15,265	)		(4,755	)
Lease obligations, long-term	$	29,611		$	2,231

⁽¹⁾ Excludes the six months ended June 30, 2022.