Commitments, Contingencies and Uncertainties

12 Months Ended

Dec. 31, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments, Contingencies and Uncertainties

3.    Commitments, Contingencies and Uncertainties

The Company has contractual obligations and commitments in the form of finance leases, operating leases and purchase commitments.

At December 31, 2021, the Company was committed under non-cancellable operating lease agreements requiring minimum annual rentals payable as follows (in thousands):

	Amount
2022	$	26,123
2023		24,658
2024		20,840
2025		16,145
2026		12,624
Thereafter		26,106
Total (1)	$	126,496
(1)  In April 2021, the Company committed to an additional terminal lease estimated to commence in 2023 of approximately $57 million with a lease term of 15 years with annual rent ranging from $3.1 million to $4.6 million. Annual  rental payments under this lease are not included in this table.

Rent expense was $31.6 million, $30.6 million, and $25.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. Management expects that in the normal course of business, leases will be renewed or replaced as they expire. Finance and operating leases are discussed further in Note 4.

Purchase commitments related to capital expenditures were $57.5 million at December 31, 2021. As of December 31, 2021 and 2020, the Company had $24.2 million and $16.3 million, respectively, of capital expenditures accrued for in accounts payable.

Other        

The Company pays its pro rata share of the cost of letters of credit outstanding for certain workers’ compensation claims incurred prior to March 1, 2000 that Saia’s former parent maintains for insurance programs.  The Company’s pro rata share of these outstanding letters of credit was $1.8 million at December 31, 2021 and 2020, respectively.

The Company is subject to legal proceedings that arise in the ordinary course of its business. Management believes that adequate provisions for resolution of all contingencies, claims and pending litigation have been made for probable and estimable losses and that the ultimate outcome of these actions will not have a material adverse effect on its financial condition but could have a material adverse effect on its results of operations in a given quarter or annual period.