7.	Commitments and Contingencies

The Company is party to certain legal proceedings incidental to its business. The ultimate disposition of these matters, in the opinion of management, based in part on the advice of legal counsel, is

not

expected to have a materially adverse effect on the Company’s financial position or results of operations.

For the cases described below, management is unable to provide a meaningful estimate of the possible loss or range of loss because, among other reasons, (

) the proceedings are in various stages; (

) damages have

not

been sought; (

) damages are unsupported and/or exaggerated; (

) there is uncertainty as to the outcome of pending appeals; and/or (

) there are significant factual issues to be resolved. For these cases, however, management does

not

believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period.

California Wage and Hour Class Action Litigation

December

2015,

a class action lawsuit was filed against us in the Superior Court of California, County of San Bernardino. The case was transferred to the U.S. District Court for the Central District of California. The putative class includes current and former truck drivers employed by us who worked or work in California after the completion of their training while residing in California since

December 23, 2011

to present. The case alleges that class members were

not

paid for off-the-clock work, were

not

provided duty free meal or break times, and were

not

paid premium pay in their absence, were

not

paid minimum wage for all hours worked, were

not

provided accurate and complete time and pay records and were

not

paid all accrued wages at the end of their employment, all in violation of California law. The class seeks a judgment for compensatory damages and penalties, injunctive relief, attorney fees and costs and pre- and post-judgment interest. The matter is currently in discovery, and a jury trial is set for

February 5, 2019.

We are currently unable to determine the possible loss or range of loss. We intend to vigorously defend the merits of these claims.

Telephone Consumer Protection Act Claim

A class action was filed against us in the U.S. District Court for the Western District of Virginia in

December 2017

and amended in

March 2018,

alleging violations of the Telephone Consumer Protection Act, for

two

separate proposed classes. The putative classes include all persons within the United States to whom the Company either initiated a telephone call to a cellular telephone number using an automatic telephone dialing system or initiated a call to a residential telephone number using an artificial or pre-recorded voice at any time from

December 11, 2013

to present. The lawsuit seeks statutory damages for each violation, injunctive relief and attorneys’ fees and costs. The Company successfully moved to dismiss the claims related to calls made to residential lines on grounds that the plaintiff lacked standing to assert such claims. The Court denied the Company’s Motion to Dismiss claims for all purported class members residing outside the State of Virginia for lack of personal jurisdiction. The matter is currently in discovery and is set for trial beginning

January 13, 2020.

We intend to vigorously defend the merits of these claims.

The Company had letters of credit of

$37.5

million and

$34.5

million outstanding as of

September 30, 2018

and

December

31,

2017,

respectively. The letters of credit are maintained primarily to support the Company’s insurance program.

The Company had cancelable commitments outstanding at

September 30, 2018

to acquire revenue and other equipment for approximately

$140.9

million during the remainder of

2018

and

$39.4

million during

2019.

These purchase commitments are expected to be financed by long-term debt, operating leases, proceeds from sales of existing equipment, and cash flows from operations.