Note 8 - Lease Obligations

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 8. Lease Obligations

The finance leases in effect at  September 30, 2021 terminate from  December 2021 through  November 2023 and contain guarantees of the residual value of the related equipment by us.

 A summary of our lease obligations at September 30, 2021 and 2020 are as follows:

(dollars in thousands)	Three Months Ended			Three Months Ended		Nine Months Ended		Nine Months Ended
	September 30, 2021			September 30, 2020		September 30, 2021		September 30, 2020
Finance lease cost:
Amortization of right-of-use assets	$	885		$	1,018	$	2,806	$	3,023
Interest on lease liabilities		159			284		493		808
Operating lease cost		6,280			5,734		18,044		19,782
Variable lease cost		8			44		99		358
Total lease cost	$	7,332		$	7,080	$	21,442	$	23,971
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		885			1,018		2,806		3,023
Operating cash flows from operating leases		4,856			5,778		14,388		20,140
Financing cash flows from finance leases		159			284		493		808
Right-of-use assets obtained in exchange for new finance lease liabilities		-			1,131		-		3,258
Right-of-use assets obtained in exchange for new operating lease liabilities		13,265			122		15,795		2,759
Weighted-average remaining lease term—finance leases (in years)		1.1
Weighted-average remaining lease term—operating leases (in years)		4.7
Weighted-average discount rate—finance leases		4.4	%
Weighted-average discount rate—operating leases		6.3	%

As of  September 30, 2021, and December 31, 2020, right-of-use assets of $40.2 million and $37.4 million for operating leases and $24.3 million and $29.4 million for finance leases, respectively, 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, in the condensed consolidated statement of operations. Amortization of finance leased assets is included in depreciation and amortization expense in the condensed consolidated statement of operations.

Our future minimum lease payments as of September 30, 2021, are summarized as follows by lease category:

(in thousands)	Operating			Finance
2021 (1)	$	4,607		$	7,655
2022		17,645			5,462
2023		9,036			462
2024		2,206			-
2025		2,112			-
Thereafter		13,669			-
Total minimum lease payments	$	49,275		$	13,579
Less: amount representing interest		(7,904	)		(329	)
Present value of minimum lease payments	$	41,371		$	13,250
Less: current portion		(16,847	)		(7,499	)
Lease obligations, long-term	$	24,524		$	5,751

⁽¹⁾ Excludes the nine months ended September 30, 2021.