Leases

12 Months Ended

Dec. 31, 2022

4. Leases

The Company’s leases include but are not limited to real estate, including terminals and general office buildings, trailers, corporate fleet vehicles and other equipment. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

As of December 31, 2022 and 2021, approximately $60.5 million and $85.1 million, respectively, of finance leased assets, net of depreciation and amortization, were included in property and equipment. Accumulated depreciation and amortization for these assets totaled $43.8 million and $53.5 million as of the same periods ended.

A summary of the lease costs for the years ended December 31, 2022 and 2021 follows (in thousands):


	2022		2021
Finance lease cost:
Amortization of right-of-use assets	$	8,276	$	11,170
Interest on lease liabilities		1,476		2,166
Operating lease cost (includes variable and sublease costs as they are immaterial)		30,919		28,859
Short-term lease cost		19,387		8,322
Total lease cost	$	60,058	$	50,517

Other Information
Right-of-use assets obtained in exchange for new finance lease liabilities		—		—
Right-of-use assets obtained in exchange for new operating lease liabilities		39,122		18,148

The discount rate used in the Company's calculation of its right-of-use assets and corresponding lease liabilities was determined based on the stated rate within each contract when available, or its incremental borrowing rate, which approximates the rate at which the Company could borrow, on a collateralized basis, over the term of a lease. Supplemental cash flow and balance sheet information related to leases was as follows (in thousands, except where noted):


	2022			2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from finance leases	$	1,484		$	2,178
Operating cash outflows from operating leases		31,043			28,908
Financing cash outflows from finance leases		19,471			20,571
Weighted-average remaining lease term - finance leases (years)		1.8			2.5
Weighted-average remaining lease term - operating leases (years)		5.2			5.6
Weighted-average discount rate - finance leases		3.7	%		3.6	%
Weighted-average discount rate - operating leases		5.1	%		4.5	%

As of December 31, 2022, maturities of lease liabilities were as follows (in thousands):


	Operating Leases		Finance Leases
Maturity of Lease Liabilities
2023	$	30,155	$	15,409
2024		29,714		10,606
2025		24,979		5,453
2026		18,321		995
2027		15,522		-
Thereafter		22,513		-
Total lease payments		141,204		32,463
Less: Interest		17,698		1,455
Present value of lease liabilities	$	123,506	$	31,008