Note 8 - Lease Obligations

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 8. Lease Obligations

The finance leases in effect at  June 30, 2023 terminate from  August 2023 through  November 2033 and contain guarantees of the residual value of the related equipment by us.

 A summary of our lease obligations at June 30, 2023 and 2022 are as follows:

(dollars in thousands)	Three Months Ended			Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2023			June 30, 2022		June 30, 2023		June 30, 2022
Finance lease cost:
Amortization of right-of-use assets	$	257		$	632	$	513	$	1,320
Interest on lease liabilities		57			98		66		222
Operating lease cost		4,639			7,210		9,245		12,647
Variable lease cost		388			88		885		109
Total lease cost	$	5,341		$	8,028	$	10,709	$	14,298
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		57			98		66		222
Operating cash flows from operating leases		3,329			7,298		7,178		12,756
Financing cash flows from finance leases		151			3,002		3,509		4,295
Right-of-use assets obtained in exchange for new finance lease liabilities		3,139			-		3,139		458
Right-of-use assets obtained in exchange for new operating lease liabilities		3,846			16,999		3,992		17,052
Weighted-average remaining lease term—finance leases (in years)		2.0
Weighted-average remaining lease term—operating leases (in years)		4.6
Weighted-average discount rate—finance leases		12.3	%
Weighted-average discount rate—operating leases		9.9	%

As of  June 30, 2023, and December 31, 2022, right-of-use assets of $52.0 million and $58.9 million for operating leases and $4.8 million and $5.3 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 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 June 30, 2023, are summarized as follows by lease category:

(in thousands)	Operating			Finance
2023 (1)	$	9,149		$	2,269
2024		18,388			857
2025		11,999			857
2026		8,399			857
2027		7,530			857
Thereafter		10,815			1,698
Total minimum lease payments	$	66,280		$	7,396
Less: amount representing interest		(12,755	)		(2,007	)
Present value of minimum lease payments	$	53,525		$	5,389
Less: current portion		(14,247	)		(2,123	)
Lease obligations, long-term	$	39,278		$	3,266

⁽¹⁾ Excludes the six months ended June 30, 2023.