XML 35 R20.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Note 11 - Leases | 12 Months Ended
--- | ---
Dec. 31, 2023
Notes to Financial Statements |
Lessee, Operating Leases [Text Block] |
11. | LEASES
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 leases in effect at December 31, 2023 terminate in June 2028 through November 2033 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 for the twelve months ended December 31, 2023, 2022, and 2021 are as follows:
(dollars in thousands) |  | Twelve Months Ended |  |  | Twelve Months Ended |  |  | Twelve Months Ended |
|  | December 31, 2023 |  |  | December 31, 2022 |  |  | December 31, 2021 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 689 |  |  | $ | 2,314 |  |  | $ | 3,620 |
Interest on lease liabilities |  |  | 510 |  |  |  | 377 |  |  |  | 637 |
Operating lease cost |  |  | 18,296 |  |  |  | 20,538 |  |  |  | 19,583 |
Short-term lease cost |  |  | 7,514 |  |  |  | 13,625 |  |  |  | 4,419 |
Variable lease cost |  |  | 1,024 |  |  |  | 232 |  |  |  | 89 |
Total lease cost |  | $ | 28,033 |  |  | $ | 37,086 |  |  | $ | 28,348 |
Other information |  |  |  |  |  |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Operating cash flows from finance leases |  | $ | 510 |  |  | $ | 377 |  |  | $ | 637 |
Operating cash flows from operating leases |  | $ | 13,965 |  |  | $ | 17,114 |  |  | $ | 17,188 |
Financing cash flows from finance leases |  | $ | 5,619 |  |  | $ | 5,516 |  |  | $ | 5,626 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | $ | 5,938 |  |  | $ | 458 |  |  | $ | - |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | $ | 3,992 |  |  | $ | 48,515 |  |  | $ | 15,795 |
Weighted-average remaining lease term—finance leases |  | 3.8 years |  |  | 5.7 years |  |  | 1.0 years |
Weighted-average remaining lease term—operating leases |  | 4.6 years |  |  | 4.6 years |  |  | 4.9 years |
Weighted-average discount rate—finance leases |  |  | 13.2 | % |  |  | 5.1 | % |  |  | 4.7 | %
Weighted-average discount rate—operating leases |  |  | 10.1 | % |  |  | 9.1 | % |  |  | 6.4 | %
During the year ended December 31, 2022, we recognized $7.5 million of expense related to the early abandonment and disposal charges related to revenue equipment held under operating leases as the equipment was a source of significant operational headwinds throughout the year due to poor fuel economy, unusually high maintenance costs, and elevated downtime. At December 31, 2023 and 2022, right-of-use assets of $41.2 million and $58.9 million for operating leases, respectively, and $6.4 million and $5.3 million for finance leases, are included in net property and equipment in our 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 December 31, 2023, summarized as follows by lease category:
(in thousands) |  | Operating |  |  | Finance |
2024 |  | $ | 15,285 |  |  | $ | 1,543 |
2025 |  |  | 11,158 |  |  |  | 1,543 |
2026 |  |  | 8,399 |  |  |  | 1,543 |
2027 |  |  | 7,530 |  |  |  | 1,543 |
2028 |  |  | 3,604 |  |  |  | 1,262 |
Thereafter |  |  | 7,211 |  |  |  | 1,629 |
Total minimum lease payments |  | $ | 53,187 |  |  | $ | 9,063 |
Less: amount representing interest |  |  | (10,345 | ) |  |  | (2,986 | )
Present value of minimum lease payments |  | $ | 42,842 |  |  | $ | 6,077 |
Less: current portion |  |  | (11,950 | ) |  |  | (781 | )
Lease obligations, long-term |  | $ | 30,892 |  |  | $ | 5,296 |
Certain leases contain cross-default provisions with other financing agreements and additional charges if the unit's mileage exceeds certain thresholds defined in the lease agreement. Rental expense is summarized as follows for each of the three years ended December 31:
(in thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
Revenue equipment rentals |  |  | $ 12,735 |  |  |  | $ 26,478 |  |  |  | $ 20,114 |
Building and lot rentals |  |  | 13,721 |  |  |  | 7,567 |  |  |  | 3,651 |
Other equipment rentals |  |  | 378 |  |  |  | 350 |  |  |  | 326 |
Total rental expense |  |  | $ 26,834 |  |  |  | $ 34,395 |  |  |  | $ 24,091 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration