Note 6 - Leases

6 Months Ended

Jun. 30, 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 6 months to 3 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 June 30, 2019
Assets:
Other noncurrent assets	$	1,004	(a)
Liabilities:
Accrued and other current liabilities		553
Noncurrent operating lease liabilities		451
Total liabilities	$	1,004

(a) Operating lease assets balance at June 30, 2019.

The maturity of the operating lease liabilities is as follows:

	Amount
Maturities:
Remainder of 2019	$	299
2020		419
2021		229
2022 - 2024		95
Total lease payments		1,042
Adjust to present value		(38	)
Total operating lease liabilities	$	1,004

The weighted-average remaining lease term at June 30, 2019 was 27 months and at January 1, 2019 was 29 months. The weighted-average discount rate was 2.25% at June 30, 2019 and 2.1% at January 1, 2019. 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.

One operating lease asset was obtained in the six months ended June 30, 2019 in exchange for a lease obligation of $82,000. Cash paid for operating leases included in the measurement of lease liabilities during the six months ended June 30, 2019 was $306,000.

Operating lease expense for the six months ended June 30, 2019 was $848,000 and is reported within other operating expenses in our consolidated condensed statements of operations. This amount includes $542,000 of short-term lease expense with an initial term of 12 months or less.