Note 8 - Leases

9 Months Ended

Sep. 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

September 30, 2019

are as follows:

(dollars in thousands)	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Finance lease cost:
Amortization of right-of-use assets	$	1,406	$	4,225
Interest on lease liabilities		210		644
Operating lease cost		6,167		17,824
Total lease cost	$	7,783	$	22,693
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		1,146		3,589
Operating cash flows from operating leases		6,167		17,824
Financing cash flows from finance leases		210		644
Right-of-use assets obtained in exchange for new operating lease liabilities		20,096		26,421
Weighted-average remaining lease term—finance leases				3.0 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				5.0	%

Right-of-use assets of 

$53.4

million

for operating leases and 

$35.3

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

September 30, 2019

, summarized as follows by lease category:

(in thousands)	Operating			Finance
2019 (1)	$	5,381		$	8,151
2020		19,075			8,074
2021		15,281			9,960
2022		13,050			11,245
2023		4,835			362
Thereafter		2,431			1,119
Total minimum lease payments	$	60,053		$	38,911
Less: amount representing interest		(5,260	)		(2,650	)
Present value of minimum lease payments	$	54,793		$	36,261
Less: current portion		(17,875	)		(7,164	)
Lease obligations, long-term	$	36,918		$	29,097

(

1

) Excludes the 

nine

months ended

September 30, 2019