XML 28 R17.htm IDEA: XBRL DOCUMENT

Note 8 - Lease Obligations

9 Months Ended

Sep. 30, 2022

Note 8.

Lease Obligations

The finance leases in effect at September 30, 2022 terminate from December 2022 through November 2033 and contain guarantees of the residual value of the related equipment by us.

A summary of our lease obligations at September 30, 2022 and 2021 are as follows:

(dollars in thousands)	Three Months Ended			Three Months Ended		Nine Months Ended		Nine Months Ended
	September 30, 2022			September 30, 2021		September 30, 2022		September 30, 2021
Finance lease cost:
Amortization of right-of-use assets	$	528		$	885	$	1,848	$	2,806
Interest on lease liabilities		92			159		314		493
Operating lease cost		7,946			6,280		20,593		18,044
Variable lease cost		39			8		148		99
Total lease cost	$	8,605		$	7,332	$	22,903	$	21,442

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		92			159		314		493
Operating cash flows from operating leases		7,985			6,288		20,741		18,143
Financing cash flows from finance leases		528			885		1,848		2,806
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		3,154			13,265		20,206		15,795
Weighted-average remaining lease term—finance leases (in years)		1.3
Weighted-average remaining lease term—operating leases (in years)		4.9
Weighted-average discount rate—finance leases		5.8	%
Weighted-average discount rate—operating leases		9.5	%

As of September 30, 2022, and December 31, 2021, right-of-use assets of $41.9 million and $35.7 million for operating leases and $5.7 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 September 30, 2022, are summarized as follows by lease category:

(in thousands)	*Operating*			*Finance*
2022 ⁽¹⁾	$	4,881		$	5,497
2023		15,685			137
2024		9,263			108
2025		5,951			108
2026		4,356			108
Thereafter		14,347			666
Total minimum lease payments	$	54,483		$	6,624
Less: amount representing interest		(11,010	)		(499	)
Present value of minimum lease payments	$	43,473		$	6,125
Less: current portion		(15,133	)		(5,233	)
Lease obligations, long-term	$	28,340		$	892

⁽¹⁾ Excludes the nine months ended September 30, 2022.