Note 8 - Leases

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 8. Leases

We finance a portion of our revenue equipment, office and terminal properties, computer and office equipment, and other equipment using leases. A number of these leases include

one

or more options to renew or extend the agreements beyond the expiration date or to terminate the agreement prior to the lease expiration date, and such options are included in or excluded from the lease term, respectively, when those options are reasonably certain to be exercised. Our lease obligations do

not

typically include residual value guarantees or material restrictive covenants. A summary of our lease obligations at

June 30, 2019

are as follows:

(dollars in thousands)	Three months Ended		Six Months Ended
	June 30, 2019		June 30, 2019
Lease Cost
Finance lease cost:
Amortization of right-of-use assets		1,408		2,819
Interest on lease liabilities		206		433
Operating lease cost		5,475		11,657
Total lease cost	$	7,089	$	14,909
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		1,297		2,443
Operating cash flows from operating leases		5,475		11,657
Financing cash flows from finance leases		206		433
Right-of-use assets obtained in exchange for new operating lease liabilities		3,089		6,325
Weighted-average remaining lease term—finance leases				3.4 years
Weighted-average remaining lease term—operating leases				3.5 years
Weighted-average discount rate—finance leases				3.0	%
Weighted-average discount rate—operating leases				4.4	%

Right-of-use assets of

$38.0

million for operating leases and

$55.1

million for finance leases are included in net property and equipment in our Condensed Consolidated Balance Sheets. Operating lease right-of-use asset amortization is included in revenue equipment rentals and purchased transportation, communication and utilities, and general supplies and expenses, depending on the underlying asset.

Our future minimum lease payments as of

June 30, 2019,

including approximately

$0.1

million of operating lease payments for which a lease has been executed, but

not

yet commenced, summarized as follows by lease category:

(in thousands)	Operating			Finance
2019 (1)	$	8,319		$	7,830
2020		13,505			7,702
2021		9,711			7,997
2022		7,476			9,441
2023		1,018			6,364
Thereafter		2,431			1,209
Total minimum lease payments	$	42,460		$	40,543
Less: amount representing interest		(3,310	)		(2,926	)
Present value of minimum lease payments	$	39,150		$	37,617
Less: current portion		(14,117	)		(6,797	)
Lease obligations, long-term	$	25,033		$	30,820

(

1

) Excludes the

six

months ended

June 30, 2019