XML 36 R23.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Note 17 - Leases | 12 Months Ended
--- | ---
Dec. 31, 2021
Notes to Financial Statements |
Lessor, Operating Leases [Text Block] |
17. | LEASES
Right-of-Use Leases During 2019, the Company entered into operating leases which include initial terms of approximately five years and which do not include an option for early cancellation. During 2021 and 2020, the Company did not enter into any new leases with similar provisions. In accordance with the provisions of ASC Topic 842, these leases resulted in the recognition of right-of-use assets and corresponding operating lease liabilities, respectively, valued at approximately $1.0 million as of December 31, 2021. These assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date, using the Company’s incremental borrowing rate as of the respective dates of lease inception, as the rate implicit in each lease is not readily determinable. The right-of-use assets are recorded in other assets, and the lease liability is recorded in accrued expenses and other liabilities and in other long-term liabilities on our consolidated balance sheet. Lease expense is recorded on a straight-line basis over the lease term and is recorded in rent and purchased transportation in our consolidated statements of operations. While the lease agreements contain provisions to extend after the initial term for an additional five years, the Company is not reasonably certain these extension options will be exercised. Therefore, potential lease payments that might occur under this extension period are not included in amounts recorded in our consolidated balance sheets as of December 31, 2021. Scheduled amounts and timing of cash flows arising from operating lease payments at December 31, 2021, are:
|  | (in thousands) |
Maturity of Lease Liabilities |  |  |  |
2022 |  | $ | 544 |
2023 |  |  | 340 |
2024 |  |  | 114 |
2025 |  |  | - |
2026 and Thereafter |  |  | - |
Total undiscounted operating lease payments |  | $ | 998 |
Less: Imputed interest |  |  | (35 | )
Present value of operating lease liabilities |  | $ | 963 |
Balance Sheet Classification |  |  |  |
Right-of-use assets (recorded in other non-current assets) |  | $ | 963 |
Current lease liabilities (recorded in other current liabilities) |  | $ | 543 |
Long-term lease liabilities (recorded in other long-term liabilities) |  |  | 420 |
Total operating lease liabilities |  | $ | 963 |
Other Information |  |  |  |
Weighted-average remaining lease term for operating leases |  | 1.98 years |
Weighted-average discount rate for operating leases |  |  | 3.65 | %
Cash Flows No new right-of-use assets were recognized as non-cash asset additions that resulted from new operating lease liabilities during the years ended December 31, 2021 and December 31, 2020, respectively. Cash paid for amounts included in the present value of right-of-use lease liabilities was $0.6 and $0.6 million during the years ended December 31, 2021 and December 31, 2020, respectively, and is included in operating cash flows. Cash Paid for Operating Leases
|  | Twelve Months Ended |
|  | December 31, |
|  | 2021 |  |  | 2020 |
|  | (in thousands) |
Right-of-Use leases |  | $ | 583 |  |  | $ | 552 |
Short-term leases (1) |  |  | 2,173 |  |  |  | 2,177 |
Total |  | $ | 2,756 |  |  | $ | 2,729 |
| (1) | Short-term lease cost includes leases with a term of twelve months or less and leases with options for early cancellation.
Lease Revenue The Company has a lease-purchase program whereby we offer independent contractors the opportunity to lease a Company-owned truck. The terms associated with these leases require weekly lease payments over the term of the leases which range from 5 to 60 months. The cost and carrying amount of Company-owned trucks in this program at December 31, 2021 were approximately $55,986,000 and $28,951,000, respectively. The cost and carrying amount of the Company-owned trucks in this program at December 31, 2020 were approximately $49,228,000 and $24,708,000, respectively. Payments under this program are classified in the Company’s financial statements under the consolidated statement of operations category Revenue. Leases in our lease-purchase program expire at various dates through 2025. Future minimum lease receipts related to these leases at December 31, 2021 and 2020 were approximately $15,907,000 and $15,242,000, respectively. Depreciation is calculated on a straight-line basis over the estimated useful life of the equipment, down to an estimated salvage value. In most cases, the Company has agreements in place with certain manufacturers whereby salvage values are guaranteed by the manufacturer. In other cases, where salvage values are not guaranteed, estimates of salvage value are based on the expected market values of equipment at the time of disposal. During the year ended December 31, 2021, the Company incurred $6.6 million of depreciation expense for these assets. The Company leases dock space to a related party at our Laredo, Texas terminal and warehouse and office space to an unrelated lessee at a second Laredo, Texas terminal. At December 31, 2021, the cost and carrying amount of the facilities leased were approximately $13,738,000 and $12,042,000, respectively. Future minimum lease receipts related to this lease at December 31, 2021 are approximately $173,000. See Note 19 – Related Party Transactions for additional information regarding the Company’s transactions with related persons. The Company's operating lease revenue is disclosed in the table below.
|  | Twelve Months Ended |
|  | December 31, |
|  | 2021 |  |  | 2020 |
Leased truck revenue (recorded in revenue, before fuel surcharge) |  | $ | 7,747 |  |  | $ | 6,756 |
Leased building space revenue (recorded in non-operating income) |  |  | 735 |  |  |  | 573 |
Total lease revenue |  | $ | 8,482 |  |  | $ | 7,329 |
Lease Receivable Future minimum operating lease payments receivable at December 31, 2021:
2022 |  | $ | 8,032 |
2023 |  |  | 5,203 |
2024 |  |  | 2,598 |
2025 |  |  | 74 |
2026 |  |  | - |
Thereafter |  |  | - |
Total future minimum lease payments receivable |  | $ | 15,907 |
Lease Payments to Related Parties Payments to related parties of $1,405,229 were made for real estate leases during 2021 which include maintenance facilities in one state and trailer drop yards in eleven states. The leases are generally month to month leases with automatic monthly renewal provisions. During 2021 the Company leased office, shop and parking spaces from various lessors, including a related party. The initial term for the majority of these leases is one year, with an option for early cancellation and an option to renew for subsequent one-month periods. These leases can be terminated by either party by providing notice to the other party of the intent to cancel or to not extend. Relatively short lease durations for these properties are intended to provide flexibility to the Company as changing operational needs and shifting opportunities often result in cancellation or non-renewal of these leases by the Company or the lessor. The minimum operating lease payable under these arrangements was approximately $217,000 as of December 31, 2021. The Company leases office and shop facilities to a related party. At December 31, 2021, the cost and carrying amount of the facilities leased were approximately $13,738,000 and $12,042,000, respectively. Future minimum lease receipts related to this lease at December 31, 2021 were approximately $12,100.

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 lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration