Operating Leases Operating Leases

12 Months Ended

Dec. 31, 2016

We have had operating leases for certain revenue equipment during the periods presented. A portion of these leases were with a commercial tractor dealership, which is partially owned by one of our board members. Rent expense for these leases was $1.0 million, $3.3 million, and $8.3 million, (including related-party rental expense totaling $1.0 million, $3.0 million, and $6.8 million), for the years ended December 31, 2016, 2015, and 2014, respectively, and were included in rent and purchased transportation in the consolidated statements of comprehensive income. The leases were terminated in 2016.

We lease certain terminal facilities under operating leases. A portion of these leases are with limited liability companies, whose members include one of our board members, and a commercial tractor dealership whose owners include one of our board members. The related-party rental payments were entered into as a result of a previous acquisition. Rent expense for terminal facilities were $2.2 million, $3.9 million, and $4.2 million, (including related-party rental expense totaling $1.9 million, $3.6 million, and $3.9 million), for the years ended December 31, 2016, 2015, and 2014, respectively, and was included in rent and purchased transportation in the consolidated statements of comprehensive income. The various leases expire from 2017 through 2018 and contain purchase options and options to renew, except the lease for the Pacific, Washington location. We have renewal options and a right of first refusal on the sale of the Pacific, Washington location property. We exercised our purchase option on the Pontoon Beach, Illinois; Rancho Cucamonga, California; Boise, Idaho; and Medford, Oregon terminals and completed these transactions during 2015. We exercised our purchase option on the Lathrop, California terminal and finalized this purchase during the second quarter of 2014. We paid $21.6 million and $2.8 million, respectively, to various limited liability companies, whose members include one of our board members, as a result of these transactions. We are responsible for all taxes, insurance, and utilities related to the terminal leases. See Note 3 for acquisition-date fair value of the “Real estate options”.

As of December 31, 2016, we did not have any capital lease obligations. Future minimum lease payments related to the operating leases described above, as of December 31, 2016, are as follows:



	Amounts (in thousands)
	Related Party		Non-Related Party		Total
2017	$	1,838	$	207	$	2,045
2018	1,545		—		1,545
2019	—		—		—
2020	—		—		—
Thereafter	—		—		—
Total	$	3,383	$	207	$	3,590

See Note 11 for additional information regarding related party transactions.