Lease Obligations

3 Months Ended

Mar. 31, 2023

Lease ObligationsIn May 2022, the Company completed a sale of an owned terminal property. In a separate transaction related to the sale, we entered into a lease agreement with a base term of two years plus a five-year renewal option with the purchaser. The right-of-use asset associated with the leased terminal facility is $2.7 million as of March 31, 2023.

Smith Transport has revenue equipment operating lease right-of-use assets from leases entered into before the May 31, 2022 acquisition. These right-of-use operating lease assets have a total balance of $14.8 million as of March 31, 2023. The operating leases have a weighted average interest rate of 3.8% at March 31, 2023, due in monthly installments with final maturities at various dates ranging from April 2023 to March 2026 with the weighted average remaining lease term of 2.0 years. Smith Transport also has related party operating leases with the founder of Smith Transport, where Smith Transport is both a lessor and lessee of certain real estate properties. These leases represent an insignificant portion of the right-of-use lease assets discussed above. See Note 11. Long-Term Debt for additional details on the finance leases.

Our future minimum lease payments as of March 31, 2023, are summarized as follows by lease category:


(in thousands)	Operating		Finance
2023 (remaining)	$	8,934	$	10,862
2024	6,193		8,231
2025	3,008		7,511
2026	151		3,901
2027	—		—
Thereafter	—		—
Total minimum lease payments	$	18,286	$	30,505
Less: future payment amount for interest	709		1,741
Present value of minimum lease payments	$	17,577	$	28,764
Less: current portion	10,885		11,324
Lease obligations, long-term	$	6,692	$	17,440