LEASES

3 Months Ended

Mar. 31, 2020

LEASES

LEASES

NOTE 7 – LEASES

The components of lease expense for each of the periods presented are as follows:

	March 31, 2020		March 31, 2019
	(in thousands)
Operating lease costs	$	2,166	$	2,159
Finance lease costs:
Amortization of assets		4,723		2,691
Interest on lease liabilities		790		546
Total finance lease costs		5,513		3,237
Variable and short-term lease costs		127		561
Total lease costs	$	7,806	$	5,957

Supplemental information and balance sheet location related to leases is as follows:

	March 31, 2020			December 31, 2019
Operating leases:	(dollars in thousands)
Operating lease right-of-use assets	$	9,830		$	11,775
Current operating lease obligations		4,602			6,050
Long-term operating lease obligations		5,347			5,812
Total operating lease liabilities	$	9,949		$	11,862
Finance leases:
Property and equipment, at cost		121,421			120,236
Accumulated amortization		(35,464)			(30,990)
Property and equipment, net	$	85,957		$	89,246
Current finance lease obligations		29,363			30,779
Long-term finance lease obligations		56,847			58,397
	$	86,210		$	89,176
Weighted average remaining lease term:		(in months)			(in months)
Operating leases		47 months			45 months
Finance leases		41 months			44 months
Weighted average discount rate:
Operating leases		4.02	%		4.03	%
Finance leases		3.34	%		3.34	%

Supplemental cash flow information related to leases is as follows for the three months ended:

	March 31, 2020		March 31, 2019
Cash paid for amounts included in measurement of liabilities:	(in thousands)
Operating cash flows from operating leases	$	33	$	2,067
Operating cash flows from finance leases		790		546
Financing cash flows from finance leases		4,150		3,110
ROU assets obtained in exchange for lease liabilities:
Operating leases		—		563
Finance leases		1,184		4,327

OTHER COMMITMENTS

As of March 31, 2020, the Company had $7.3 million in noncancellable commitments for acquisition of revenue equipment.  We anticipate funding these commitments with cash flows from operating and financing activities.

RELATED PARTY LEASE

In the normal course of business, the Company leases office and shop space from a related party under a monthly operating lease.  Rent expense for this space was approximately $0.04 million for the three months ended March 31, 2020 and 2019.  This expense is included in the “Operations and maintenance” line item in the accompanying condensed consolidated statement of (loss) income and comprehensive (loss) income.