Leases

12 Months Ended

Dec. 31, 2022

Leases

Leases

9.       Leases

We have operating and finance leases with terms of 1 year to 16 years for certain revenue and service equipment and office and terminal facilities.

The table below presents the lease-related assets and liabilities recorded on the balance sheet (in thousands):

		As of December 31,
Leases	Classification	2022		2021
Assets
Operating	Operating lease right-of-use assets	$	333,498	$	292,347
Finance	Property and equipment, net		6,866		7,447
Total leased assets		$	340,364	$	299,794
Liabilities
Current
Operating	Current portion of operating lease liabilities	$	105,078	$	88,375
Finance	Current maturities of long-term debt and finance leases		2,024		1,533
Noncurrent
Operating	Noncurrent operating lease liabilities		230,505		205,362
Finance	Long-term debt and finance leases, net of current maturities		5,557		6,625
Total lease liabilities		$	343,164	$	301,895

The table below presents certain information related to the lease costs for finance and operating leases (in thousands):

		Year Ended
		December 31,
Lease Cost	Classification	2022		2021		2020
Operating lease cost	Vehicle rents and General and other operating	$	109,392	$	95,540	$	86,847
Finance lease cost:
Amortization of finance lease assets	Depreciation and amortization		1,570		1,696		1,751
Interest on lease liabilities	Interest expense		445		510		518
Short-term lease cost	Vehicle rents and General and other operating		2,286		4,260		7,949
Total lease cost		$	113,693	$	102,006	$	97,065

	Year Ended
	December 31,
Cash Flow Information	2022		2021		2020
Cash paid for operating leases included in operating activities	$	109,392	$	95,540	$	86,847
Cash paid for finance leases included in operating activities	$	443	$	511	$	518
Cash paid for finance leases included in financing activities	$	1,686	$	1,901	$	4,632
Operating lease right-of-use assets obtained in exchange for lease obligations	$	150,796	$	87,019	$	93,042

Noncash lease expense was $110.1 million, $96.7 million and $87.5 million during 2022, 2021 and 2020, respectively.

	December 31, 2022
	Weighted‑Average	Weighted-
	Remaining Lease	Average
Lease Term and Discount Rate	Term (years)	Discount Rate
Operating leases	4.5	5.3	%
Finance leases	7.4	4.5	%
	December 31, 2021
	Weighted‑Average	Weighted-
	Remaining Lease	Average
Lease Term and Discount Rate	Term (years)	Discount Rate
Operating leases	4.8	3.8	%
Finance leases	8.1	4.7	%

As of December 31, 2022, future maturities of lease liabilities were as follows (in thousands):

	December 31, 2022
	Finance		Operating
2023	$	2,325	$	117,240
2024		1,254		87,886
2025		792		67,733
2026		584		45,732
2027		600		16,221
Thereafter		3,435		39,552
		8,990		374,364
Less: Amount representing interest		(1,409)		(38,781)
Total	$	7,581	$	335,583

Certain revenue equipment leases provide for guarantees by the Company of a portion of the specified residual value at the end of the lease term. The maximum potential amount of future payments (undiscounted) under these guarantees is approximately $191.8 million at December 31, 2022. The residual value of a portion of the related leased revenue equipment is covered by repurchase or trade agreements between the Company and the equipment manufacturer.

We lease tractors to independent contractors under operating leases and recognized lease income under these leases of $18.2 million, $26.0 million and $39.8 million during 2022, 2021, and 2020 respectively.