10 .	Commitments and Contingencies

As of

December 31, 2017,

we had approximately

$74.2

million of obligations remaining under operating lease arrangements related primarily to terminal and support facilities. Future minimum lease payments under noncancelable operating leases (with initial or remaining lease terms in excess of

one

year) as of

December 31, 2017,

are approximately

$74.2

million, with payment streams as follows (in millions):

2018

$24.5;

2019

$18.6;

2020

$15.0;

2021

$8.8;

2022

$4.2;

and thereafter -

$3.1.

Total rent expense was

$64.3

million in

2017,

$44.1

million in

2016,

and

$39.5

million in

2015.

December 31, 2017,

we had outstanding commitments of approximately

$797.6

million, net of proceeds from sales or trade-ins during

2018

and

2019,

which is primarily related to the acquisition of containers, chassis, and tractors.

During

17,

we issued financial standby letters of credit as a guaranty of our performance under certain operating agreements and self-insurance arrangements. If we default on our commitments under the agreements or other arrangements, we are required to perform under these guaranties. The undiscounted maximum amount of our obligation to make future payments in the event of defaults is approximately

$4.4

million as of

December 31, 2017.

We are a defendant in certain class-action lawsuits in which the plaintiffs are current and former California-based drivers who allege claims for unpaid wages, failure to provide meal and rest periods, and other items.

During the

first

half of

2014,

the District Court in the lead class-action granted judgment in our favor with regard to all claims. The plaintiffs appealed the case to the United States Court of Appeals for the Ninth Circuit. In

July 2017,

the Ninth Circuit issued a Memorandum decision vacating the judgment in our favor and remanding the case to the District Court for further proceedings. The Ninth Circuit denied our Petition for Rehearing En Banc in

November 2017,

and the case has been reassigned to the United States District Court for the Central District of California for further proceedings according to the schedule entered by the Court. In

February 2018,

we filed a Petition for a Writ of Certiorari in the Supreme Court of the United States seeking review of the Ninth Circuit’s decision. The overlapping claims in the other lawsuits remain stayed pending final resolution of the appellate process or a final decision in the lead class-action case. We cannot reasonably estimate at this time the possible loss or range of loss, if any, that

may

arise from these lawsuits, however, as of

December 31, 2017,

we have recorded a

$10

million reserve representing an amount we deem acceptable for the settlement of these claims.

January 2017,

we exercised our right to utilize the arbitration process to review the division of revenue collected beginning

May 1, 2016,

as well as to clarify other issues, under our Joint Service Agreement with BNSF Railway Company (BNSF). BNSF has requested the same, and the arbitration process has commenced. BNSF provides a significant amount of rail transportation services to our JBI business segment. At this time, we are unable to reasonably predict the outcome of the arbitration, and, as such,

gain or loss contingency can be determined or recorded. Normal commercial business activity between the parties, including load tendering, load tracing, billing and payments, has continued and is expected to continue on a timely basis.

We are involved in certain other claims and pending litigation arising from the normal conduct of business. Based on present knowledge of the facts and, in certain cases, opinions of outside counsel, we believe the resolution of these claims and pending litigation will

not

have a material adverse effect on our financial condition, results of operations or liquidity.