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.

Finance lease obligations are utilized to finance a portion of our revenue equipment and are entered into with certain finance companies who are

not

parties to our Credit Facility. The leases in effect at

December 31, 2019

terminate in

January 2020

through

November 2024

and contain guarantees of the residual value of the related equipment by us. As such, the residual guarantees are included in the related debt balance as a balloon payment at the end of the related term as well as included in the future minimum finance lease payments. These lease agreements require us to pay personal property taxes, maintenance, and operating expenses. Our operating lease obligations do

not

typically include residual value guarantees or material restrictive covenants.

A summary of our lease obligations for the

twelve

months ended

December 31, 2019

are as follows:

(dollars in thousands)	Twelve Months Ended
	December 31, 2019
Finance lease cost:
Amortization of right-of-use assets	$	5,469
Interest on lease liabilities		1,107
Operating lease cost		24,393
Variable lease cost		326

Total lease cost	$	31,295

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for finance leases	$	7,226
Operating cash flows for operating leases	$	24,393
Financing cash flows for finance leases	$	1,107
Right-of-use assets obtained in exchange for new finance lease liabilities	$	-
Right-of-use assets obtained in exchange for new operating lease liabilities	$	37,080
Weighted-average remaining lease term—finance leases	2.9 years
Weighted-average remaining lease term—operating leases	3.4 years
Weighted-average discount rate—finance leases		3.0	%
Weighted-average discount rate—operating leases		5.2	%

December 31, 2019

, right-of-use assets of

$58.8

million

for operating leases and

$35.6

million

for finance leases are included in net property and equipment in our consolidated balance sheets. At

December 31, 2018,

we had operating lease commitments of

$42.5

million, which were off-balance sheet, and finance leases of

$40.5

million included in net property and equipment in our 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, in the consolidated statement of operations. Amortization of finance leased assets is included in depreciation and amortization expense in the consolidated statement of operations.

Our future minimum lease payments as of

December 31, 2019

, summarized as follows by lease category:

(in thousands)	Operating			Finance
2020	$	21,991		$	8,185
2021		18,223			7,719
2022		16,014			9,269
2023		7,293			9,080
2024		439			1,390
Thereafter		1,992			-
Total minimum lease payments	$	65,952		$	35,643
Less: amount representing interest		(5,610	)		(2,375	)
Present value of minimum lease payments		60,342			33,268
Less: current portion		(19,460	)		(7,258	)
Lease obligations, long-term	$	40,882		$	26,010

Certain leases contain cross-default provisions with other financing agreements and additional charges if the unit's mileage exceeds certain thresholds defined in the lease agreement.

Rental expense is summarized as follows for each of the

three

years ended

December 31:

(in thousands)	2019		2018		2017
Revenue equipment rentals	$	20,989	$	14,682	$	12,055
Building and lot rentals		2,898		1,339		448
Other equipment rentals		506		881		261
Total rental expense	$	24,393	$	16,902	$	12,764