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Note 8 - Lease Obligations

3 Months Ended

Mar. 31, 2023

Note 8.

Lease Obligations

The finance leases in effect at March 31, 2023 terminate from August 2023 through November 2033 and contain guarantees of the residual value of the related equipment by us.

A summary of our lease obligations at March 31, 2023 and 2022 are as follows:

(dollars in thousands)	Three Months Ended			Three Months Ended
	March 31, 2023			March 31, 2022
Finance lease cost:
Amortization of right-of-use assets	$	256		$	688
Interest on lease liabilities		9			124
Operating lease cost		4,620			5,437
Variable lease cost		497			22
Total lease cost	$	5,382		$	6,271

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		9			124
Operating cash flows from operating leases		3,861			5,459
Financing cash flows from finance leases		3,358			1,293
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		146			53
Weighted-average remaining lease term—finance leases (in years)		2.3
Weighted-average remaining lease term—operating leases (in years)		4.8
Weighted-average discount rate—finance leases		9.6	%
Weighted-average discount rate—operating leases		9.7	%

As of March 31, 2023, and December 31, 2022, right-of-use assets of $51.8 million and $58.9 million for operating leases and $1.9 million and $5.3 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 March 31, 2023, are summarized as follows by lease category:

(in thousands)	*Operating*			*Finance*
2023 (1)	$	13,014		$	1,674
2024		17,366			108
2025		10,854			108
2026		7,516			108
2027		6,777			108
Thereafter		10,572			629
Total minimum lease payments	$	66,099		$	2,735
Less: amount representing interest		(12,824	)		(334	)
Present value of minimum lease payments	$	53,275		$	2,401
Less: current portion		(13,431	)		(1,972	)
Lease obligations, long-term	$	39,844		$	429

⁽¹⁾ Excludes the three months ended March 31, 2023.