LEASES

12 Months Ended

Dec. 31, 2021

We determine if our contractual agreements contain a lease at inception. A lease is identified when a contract allows us the right to control an identified asset for a period of time in exchange for consideration. Our lease agreements consist primarily of operating leases for office space, warehouses, office equipment, and a small number of intermodal containers. We do not have material financing leases. Frequently, we enter into contractual relationships with a wide variety of transportation companies for freight capacity, and utilize those relationships to efficiently and cost-effectively arrange the transport of our customers’ freight. These contracts typically have a term of 12 months or less and do not allow us to direct the use or obtain substantially all of the economic benefits of a specifically identified asset. Accordingly, these agreements are not considered leases.

Our operating leases are included on the consolidated balance sheets as right-of-use lease assets and lease liabilities. A right-of-use lease asset represents our right to use an underlying asset over the term of a lease, while a lease liability represents our obligation to make lease payments arising from the lease. Current and noncurrent lease liabilities are recognized on commencement date at the present value of lease payments, including non-lease components, which consist primarily of common area maintenance and parking charges. Right-of-use lease assets are also recognized on the commencement date as the total lease liability plus prepaid rents. As our leases typically do not provide an implicit rate, we use our fully collateralized incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is influenced by market interest rates, our credit rating, and lease term and as such, may differ for individual leases.

Our lease agreements typically do not contain variable lease payments, residual value guarantees, purchase options, or restrictive covenants. Many of our leases include the option to renew for a period of months to several years. The term of our leases may include the option to renew when it is reasonably certain that we will exercise that option although these occurrences are seldom. We have lease agreements with lease components (e.g., payments for rent) and non-lease components (e.g., payments for common area maintenance and parking), which are all accounted for as a single lease component.

Information regarding lease expense, remaining lease term, discount rate, and other select lease information is presented below as of December 31, 2021 and 2020, and for the twelve months ended December 31, 2021 and 2020 (dollars in thousands):


	Twelve Months Ended December 31,
Lease Costs	2021		2020
Operating lease expense	$	85,521	$	86,451
Short-term lease expense	8,307		15,130
Total lease expense	$	93,828	$	101,581


	Twelve Months Ended December 31,
Other Lease Information	2021		2020
Operating cash outflows from operating leases	$	85,244	$	74,177
Right-of-use lease assets obtained in exchange for new lease liabilities(1)	52,931		95,005


	As of December 31,
Lease Term and Discount Rate	2021		2020
Weighted average remaining lease term (in years)(1)	6.4		6.8
Weighted average discount rate	3.0	%	3.2	%

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(1) The weighted average remaining lease term is significantly impacted by a 15-year lease related to office space in Chicago, IL, that commenced in 2018. Excluding this lease, the weighted average remaining lease term of our agreements is 4.5 years.

The maturity of lease liabilities as of December 31, 2021, were as follows (in thousands):


Maturity of Lease Liabilities	Operating Leases
2022	$	74,600
2023	69,277
2024	48,819
2025	36,461
2026	26,678
Thereafter	86,859
Total lease payments	342,694
Less: Interest	(35,014)
Present value of lease liabilities	$	307,680