Leases

12 Months Ended

Dec. 31, 2024

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, 2024 and 2023, approximately $18.2 million and $38.6 million, respectively, of finance leased assets, net of amortization, were included in property and equipment. Accumulated amortization for these assets totaled $16.2 million and $31.2 million as of the same periods ended.

A summary of the lease costs for the years ended December 31, 2024 and 2023 follows (in thousands):


	2024		2023
Finance lease cost:
Amortization of right-of-use assets	$	3,770	$	5,693
Interest on lease liabilities		426		883
Operating lease cost (includes variable and sublease costs as they are immaterial)		38,755		34,522
Short-term lease cost		15,336		16,303
Total lease cost	$	58,287	$	57,401

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		40,540		27,026

The discount rate used in the Company's calculation of its right-of-use assets and corresponding lease liabilities was determined based on the rate implicit in the lease if readily determinable, 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):


	2024			2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from finance leases	$	444		$	890
Operating cash outflows from operating leases		37,844			35,339
Financing cash outflows from finance leases		10,193			14,520
Weighted-average remaining lease term - finance leases (years)		0.7			1.2
Weighted-average remaining lease term - operating leases (years)		5.2			5.4
Weighted-average discount rate - finance leases		4.1	%		4.0	%
Weighted-average discount rate - operating leases		5.5	%		5.4	%

As of December 31, 2024, maturities of lease liabilities were as follows (in thousands):


	Operating Leases		Finance Leases
Maturity of Lease Liabilities
2025	$	36,094	$	5,434
2026		28,798		993
2027		25,324		-
2028		20,381		-
2029		14,988		-
Thereafter		21,763		-
Total lease payments		147,348		6,427
Less: Interest		23,178		133
Present value of lease liabilities	$	124,170	$	6,294