COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2017

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 14 – COMMITMENTS AND CONTINGENCIES

Operating Leases

The Company leases certain office building facilities, terminal locations and revenue equipment under non-cancelable operating leases. Building and terminal rent expense under operating leases was $0.8 million and $0.6 million for the three months ended March 31, 2017 and 2016, respectively. Tractor, trailer and other revenue equipment rent expense under operating leases was $3.9 million and $2.6 million for the three months ended March 31, 2017 and 2016, respectively.

Letters of Credit

The Company had outstanding letters of credit at March 31, 2017 totaling approximately $7.0 million, including those disclosed in Note 8. These letters of credit cover liability insurance claims.

Contingencies

The Company is involved in certain claims and pending litigation arising in the normal course of business. These proceedings primarily involve claims for personal injury or property damage incurred in the transportation of freight or for personnel matters. The Company maintains liability insurance to cover liabilities arising from these matters but is responsible for deductibles on such matters up to a certain threshold before the insurance is applied.