Operating Leases Operating Leases

12 Months Ended

Dec. 31, 2014

We have operating leases for certain revenue equipment. A portion of these leases are with a commercial tractor dealership, which is owned by a board member and certain of our employees. Rent expense for these leases was $8.3 million and $1.3 million, (including related-party rental payments totaling $6.8 million and $0.9 million), for the year ended December 31, 2014 and 2013, respectively, and were included in rent and purchased transportation in the consolidated statements of comprehensive income. The various leases expire from 2015 through 2016.

We lease certain terminal facilities under operating leases. A portion of these leases are with limited liability companies, whose members include a board member and certain of our employees and a commercial tractor dealership owned by a board member and certain of our employees. The related-party rental payments were entered into as a result of the Transaction. Rent expense for terminal facilities were $4.2 million and $0.7 million, (including related-party rental payments totaling $3.9 million and $0.6 million), for the years ended December 31, 2014 and 2013, respectively, and was included in rent and purchased transportation in the consolidated statements of comprehensive income. The various leases expire from 2015 through 2018 and contain options to renew. We have purchase options on the majority of these facilities. We exercised our purchase option on the Lathrop, California terminal and finalized this purchase during the second quarter of 2014. We paid $2.8 million to a limited liability company, whose members include a board member and certain of our employees, as a result of this transaction. We have a right of first refusal on the sale of the Pacific, Washington location property by the owners. We are 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”.

As of December 31, 2014, we did not have any capital lease obligations. Future minimum lease payments related to the operating leases described above, as of December 31, 2014, are as follows:



	Amounts (in thousands)
	Related Party		Non-Related Party		Total
2015	$	6,580	$	507	$	7,087
2016	5,010		206		5,216
2017	3,718		135		3,853
2018	3,408		—		3,408
Thereafter	—		—		—
Total	$	18,716	$	848	$	19,564

See Note 12 for additional information regarding related party transactions.

- 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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