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Note 8 - Lease Obligations

6 Months Ended

Jun. 30, 2024

Note 8.

Lease Obligations

The finance leases in effect at June 30, 2024 terminate from May 2025 through November 2033 and contain guarantees of the residual value of the related equipment by us.

A summary of our lease obligations at June 30, 2024 and 2023 are as follows:

(dollars in thousands)	Three Months Ended			Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2024			June 30, 2023		June 30, 2024		June 30, 2023
Finance lease cost:
Amortization of right-of-use assets	$	123		$	257	$	246	$	513
Interest on lease liabilities		222			57		421		66
Operating lease cost		3,325			4,639		6,959		9,245
Variable lease cost		125			388		149		885
Short-term lease cost		914			2,509		1,974		4,133
Total lease cost	$	4,709		$	7,850	$	9,749	$	14,842

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		222			57		421		66
Operating cash flows from operating leases		2,505			3,329		5,435		7,178
Financing cash flows from finance leases		203			151		365		3,509
Right-of-use assets obtained in exchange for new finance lease liabilities		5			3,139		815		3,139
Right-of-use assets obtained in exchange for new operating lease liabilities		8,970			3,846		8,970		3,992
Weighted-average remaining lease term—finance leases (in years)		3.7
Weighted-average remaining lease term—operating leases (in years)		4.7
Weighted-average discount rate—finance leases		13.4	%
Weighted-average discount rate—operating leases		9.2	%

As of June 30, 2024, and December 31, 2023, right-of-use assets of $40.9 million and $41.2 million for operating leases and $6.7 million and $6.4 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 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, 2024, are summarized as follows by lease category:

(in thousands)	*Operating*			*Finance*
2024 ⁽¹⁾	$	6,925		$	886
2025		12,007			1,770
2026		10,565			1,768
2027		9,450			1,768
2028		5,008			1,487
Thereafter		7,678			1,703
Total minimum lease payments	$	51,633		$	9,382
Less: amount representing interest		(8,977	)		(2,855	)
Present value of minimum lease payments	$	42,656		$	6,527
Less: current portion		(10,612	)		(956	)
Lease obligations, long-term	$	32,044		$	5,571

⁽¹⁾ Excludes the six months ended June 30, 2024.