LEASES

12 Months Ended

Dec. 31, 2025

We have entered into operating leases primarily for real estate. The leases have terms which range from 2 years to 18 years, and some include options to renew. Renewal terms are included in the lease term when it is reasonably certain that we will exercise the option to renew.

Operating leases are included in other non-current assets, other current liabilities and other long-term liabilities on the consolidated balance sheets. These assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date, using our incremental borrowing rate because the rate implicit in each lease is not readily determinable. We have certain contracts for real estate that may contain lease and non-lease components which we have elected to treat as a single lease component. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Lease expense is reported in rent and purchased transportation on the consolidated statements of income.

The following table presents balance sheet and other operating lease information (dollars in thousands):


	December 31,
	2025			2024
Right-of-use assets (recorded in other non-current assets)	$	39,703		$	49,599
Current lease liabilities (recorded in other current liabilities)	$	15,451		$	15,352
Long-term lease liabilities (recorded in other long-term liabilities)	26,470			36,406
Total operating lease liabilities	$	41,921		$	51,758
Weighted-average remaining lease term for operating leases	4.47 years			4.75 years
Weighted-average discount rate for operating leases	5.0		%	5.0		%

The following table presents the maturities of operating lease liabilities as of December 31, 2025 (in thousands):


2026	$	17,069
2027	9,689
2028	7,846
2029	4,800
2030	1,994
Thereafter	4,684
Total undiscounted operating lease payments	$	46,082
Less: Imputed interest	(4,161)
Present value of operating lease liabilities	$	41,921

Cash Flows

During the years ended December 31, 2025, 2024, and 2023, right-of-use assets of $6.1 million, $26.1 million, and $4.7 million, respectively, were recognized as non-cash asset additions that resulted from new operating lease liabilities. Cash paid for amounts included in the present value of operating lease liabilities was $17.8 million, $12.1 million, and $11.1 million during the years ended December 31, 2025, 2024, and 2023, respectively, and are included in operating cash flows.

Operating Lease Expense

Operating lease expense was $27.6 million, $19.3 million, and $22.5 million during the years ended December 31, 2025, 2024, and 2023, respectively. This expense included $17.9 million, $12.5 million, and $11.5 million for long-term operating leases for the years ended December 31, 2025, 2024, and 2023, respectively, with the remainder for variable and short-term lease expense.

Lessor Operating Leases

We are the lessor of tractors and trailers (revenue equipment) under operating leases with initial terms of 1 year to 10 years. At times, we also lease or sublease real estate to third parties. We recognize revenue for such leases on a straight-line basis over the term of the lease. Revenues for the years ended December 31, 2025, 2024, and 2023 were $11.9 million, $9.6 million, and $10.9 million, respectively. The following table presents information about the maturities of these operating leases as of December 31, 2025 (in thousands):


2026	$	8,302
2027	403
2028	—
2029	—
2030	—
Thereafter	—
Total	$	8,705

The owned assets underlying our leases as lessor primarily consist of revenue equipment. As of December 31, 2025 and 2024, the gross carrying value of such revenue equipment underlying these leases was $72.5 million and $61.8 million, respectively,

and accumulated depreciation was $32.0 million and $26.7 million, respectively. Depreciation expense for these assets was $8.6 million, $7.4 million, and $8.2 million during the years ended December 31, 2025, 2024, and 2023, respectively.