Leases

3 Months Ended

Mar. 31, 2019

The Company leases terminals, office space, trucks, trailers, and other equipment under noncancelable operating leases expiring on various dates through 2042. The Company also leases trucks, trailers, office space and other equipment under finance leases. Certain of our lease agreements for trucks, trailers and other equipment contain residual value guarantees.

Amounts recognized in the condensed consolidated balance sheets related to the Company's lease portfolio are as follows (in thousands):



	March 31, 2019
Assets:
Finance lease assets, net (included in property and equipment)	$	74,154
Operating lease right-of-use asset	122,701
Total lease assets	$	196,855
Liabilities:
Current finance lease liability	$	17,658
Current operating lease liability	36,797
Long-term finance lease liability	56,334
Long-term operating lease liability	90,767
Total lease liabilities	$	201,556

Amounts recognized in the condensed consolidated income statement related to the Company's lease portfolio for the three months ended March 31, 2019 are as follows (in thousands):



Lease component	Classification

Rent expense - operating leases	Other operating expenses	$	16,510
Amortization of finance lease assets	Depreciation expense	$	4,331
Interest on finance lease liabilities	Interest expense	$	1,200

Rent expense for operating leases relates primarily to long-term operating leases, but also includes amounts for variable leases and short-term leases. The Company also recognized rental income of $2.5 million for the three months ended March 31, 2019 related to operating leases the Company entered into with its independent contractors (“IC”), of which $1.8 million relates to sublease income. The Company records rental income from leases to rent expense - operating leases.

Aggregate future minimum lease payments under noncancelable operating and finance leases with an initial term in excess of one year were as follows as of March 31, 2019 (in thousands):



Year Ending:	Operating leases			Finance leases			Total
Remainder of 2019	$	34,178		$	16,666		$	50,844
2020	35,278			20,606			55,884
2021	25,499			24,081			49,580
2022	21,220			9,421			30,641
2023	18,041			8,986			27,027
Thereafter	17,924			6,550			24,474
Total	$	152,140		$	86,310		$	238,450
Less: Interest	(24,576		)	(12,318		)	(36,894		)
Present value of lease liabilities	$	127,564		$	73,992		$	201,556

Aggregate future minimum lease payments under noncancelable operating leases with an initial term in excess of one year were as follows as of December 31, 2018 (in thousands):



Year Ending:
2019	$	45,713
2020	34,920
2021	25,536
2022	21,413
2023	17,920
Thereafter	17,556
Total	$	163,058

The weighted average remaining lease term and discount rate used in computing the lease liability as of March 31, 2019 are as follows:



Weighted average remaining lease term (in years)
Operating leases	4.5
Finance leases	3.6

Weighted average discount rate
Operating leases	7.2	%
Finance leases	7.2	%

Supplemental cash flow information related to leases for the three months ended March 31, 2019 is as follows (in thousands):



Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	12,149
Operating cash flows from finance leases	1,200
Financing cash flows from finance leases	3,980

ROU assets obtained in exchange or lease liabilities:
Operating leases	$	2,030

Lease transactions with related parties are disclosed in Note 13, Related Party Transactions.

Leases