Operating Leases Operating Leases

12 Months Ended

Dec. 31, 2015

We have operating leases for certain revenue equipment. A portion of these leases are with a commercial tractor dealership, which is owned by a board member and one of our employees. Rent expense for these leases was $3.3 million, $8.3 million, and $1.3 million, (including related-party rental expense totaling $3.0 million, $6.8 million, and $0.9 million), for the year ended December 31, 2015, 2014, and 2013, respectively, and were included in rent and purchased transportation in the consolidated statements of comprehensive income. The leases expire in 2016.

We lease certain terminal facilities under operating leases. A portion of these leases are with limited liability companies, whose members include a board member and one of our employees and a commercial tractor dealership whose owners include a board member and one of our employees. The related-party rental payments were entered into as a result of the Transaction. Rent expense for terminal facilities were $3.9 million, $4.2 million and $0.7 million, (including related-party rental expense totaling $3.6 million, $3.9 million, and $0.6 million), for the years ended December 31, 2015, 2014, and 2013, respectively, and was included in rent and purchased transportation in the consolidated statements of comprehensive income. The various leases expire from 2016 through 2018 and contain purchase options and options to renew, except the Pacific, Washington location. We have renewal options and a right of first refusal on the sale of the Pacific, Washington location property. We exercised our purchase option on the Pontoon Beach, Illinois; Rancho Cucamonga, California; Boise, Idaho; and Medford, Oregon terminals and completed these transactions during 2015. We exercised our purchase option on the Lathrop, California terminal and finalized this purchase during the second quarter of 2014. We paid $21.6 million and $2.8 million, respectively, to various limited liability companies, whose members include a board member and one of our employees, as a result of these transactions. We are responsible for all taxes, insurance, and utilities related to the terminal leases. See Note 4 for acquisition-date fair value of the “Real estate options”.

As of December 31, 2015, we did not have any capital lease obligations. Future minimum lease payments related to the operating leases described above, as of December 31, 2015, are as follows:



	Amounts (in thousands)
	Related Party		Non-Related Party		Total
2016	$	3,118	$	253	$	3,371
2017	1,842		135		1,977
2018	1,688		—		1,688
2019	—		—		—
Thereafter	—		—		—
Total	$	6,648	$	388	$	7,036

See Note 12 for additional information regarding related party transactions.