Operating Leases Operating Leases

12 Months Ended

Dec. 31, 2013

The Company has operating leases for certain revenue equipment. A portion of these leases are with a commercial tractor dealership, owned by a board member and certain employees of the Company. Rent expense for these leases were $1.3 million, (including related-party rental payments totaling $0.9 million) for the year ended December 31, 2013 and were included in rent and purchased transportation in the consolidated statements of comprehensive income. There was no rent expense in 2012. The various leases expire from 2014 through 2018.

The Company leases certain terminal facilities under operating leases from limited liability companies, whose members include a board member and certain employees of the Company and a commercial tractor dealership owned by a board member and certain employees of the Company. The related-party rental payments were entered into as a result of the Transaction. Rent expense for terminal facilities were $0.7 million, including related-party rental payments totaling $0.6 million, for the year ended December 31, 2013 and were included in rent and purchased transportation in the consolidated statements of comprehensive income. There was no rent expense in 2012. The various leases expire from 2014 through 2018 and contain options to renew. The Company has purchase options on the majority of these facilities. The Company has a right of first refusal on the sale of the Pacific, Washington location property by the owners. The Company is responsible for all taxes, insurance, and utilities related to the terminal leases. See note 4 for acquisition-date fair value of the "Real estate options".

The Company did not have any operating leases prior to 2013. Future minimum lease payments related to the leases described above, as of December 31, 2013, are as follows:



	Amount (in thousands)
	Related Party		Non-Related Party		Total
2014	$	9,853	$	1,396	$	11,249
2015	6,972		184		7,156
2016	5,401		—		5,401
2017	4,109		—		4,109
2018	3,424		—		3,424
Thereafter	—		—		—
Total	$	29,759	$	1,580	$	31,339

See note 12 for additional information.

- Definition

The entire disclosure for operating leases of a lessor. This may include a general description of lessor's leasing arrangements for operating leases, including the basis on which contingent rental payments are determined, the existence and terms of renewal or purchase options and escalation clauses, restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions.

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