Note 8 - Lease Obligations

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 8. Lease Obligations

The finance leases in effect at  March 31, 2022 terminate from  May 2022 through  November 2023 and contain guarantees of the residual value of the related equipment by us.

 A summary of our lease obligations at March 31, 2022 and 2021 are as follows:

(dollars in thousands)	Three Months Ended			Three Months Ended
	March 31, 2022			March 31, 2021
Finance lease cost:
Amortization of right-of-use assets	$	688		$	1,007
Interest on lease liabilities		124			174
Operating lease cost		5,437			5,935
Variable lease cost		22			39
Total lease cost	$	6,271		$	7,155
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		124			174
Operating cash flows from operating leases		5,459			5,974
Financing cash flows from finance leases		1,293			633
Right-of-use assets obtained in exchange for new finance lease liabilities		458			-
Right-of-use assets obtained in exchange for new operating lease liabilities		53			224
Weighted-average remaining lease term—finance leases (in years)		1.3
Weighted-average remaining lease term—operating leases (in years)		5.2
Weighted-average discount rate—finance leases		5.6	%
Weighted-average discount rate—operating leases		6.9	%

As of  March 31, 2022, and December 31, 2021, right-of-use assets of $31.1 million and $35.7 million for operating leases and $22.9 million and $23.2 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 March 31, 2022, are summarized as follows by lease category:

(in thousands)	Operating			Finance
2022 (1)	$	11,840		$	6,834
2023		9,398			2,942
2024		2,497			108
2025		2,112			108
2026		2,170			108
Thereafter		11,499			747
Total minimum lease payments	$	39,516		$	10,847
Less: amount representing interest		(6,929	)		(865	)
Present value of minimum lease payments	$	32,587		$	9,982
Less: current portion		(13,149	)		(7,574	)
Lease obligations, long-term	$	19,438		$	2,408

⁽¹⁾ Excludes the three months ended March 31, 2022.