Note 6 - Leases

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(

6

) Leases

We lease terminal space, drop yard areas, office space, land and equipment. All leases are classified as operating leases. We do

not

have any financing leases. Leases with an initial term of

12

months or less are

not

recorded in our balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Rental payments for operating leases that extend beyond

12

months are fixed.

Some leases include options to renew, with renewal terms that can extend the lease term from

one

to

three

years or more. The exercise of lease renewal options is at our sole discretion. Operating lease liabilities include leases that we have determined are reasonably certain of being extended.

The classification of operating leases in our consolidated condensed balance sheet was as follows:

(In thousands)	Balance at March 31, 2019
Assets:
Other noncurrent assets	$	989	(a)
Liabilities:
Accrued and other current liabilities		537
Noncurrent operating lease liabilities		452
Total liabilities	$	989

(a) Operating lease assets balance at March 31, 2019.

The maturity of the operating lease liabilities is as follows:

	Amount
Maturities:
Remainder of 2019	$	385
2020		372
2021		211
2022		55
Total lease payments		1,023
Adjust to present value		(34	)
Total operating lease liabilities	$	989

The weighted-average remaining lease term at

March 31, 2019

was

27

months and at

January 1, 2019

was

29

months. The weighted-average discount rate at both

March 31, 2019

and

January 1, 2019

was

2.1%

.

The operating leases identified do

not

contain implicit rates, accordingly, we use our incremental borrowing rate at the time of lease inception to determine the present value of lease payments.

There were

no

operating lease assets obtained in the

three

months ended

March 31, 2019

in exchange for lease obligations. Cash paid for operating leases included in the measurement of lease liabilities during the

three

months ended

March 31, 2019

was

$150,000.

Operating lease expense for the

three

months ended

March 31, 2019

was

$374,000

and is reported within other operating expenses in our consolidated condensed statements of operations. This amount includes

$224,000

of short-term lease expense with an initial term of

12

months or less.