Lease Obligations

9 Months Ended

Sep. 30, 2024

Lease Obligations

During 2023, we sold multiple properties for a combined $25.6 million gain. In separate transactions related to the respective sales, we entered into operating lease agreements, each with a base term of two years. The right-of-use assets associated with terminal leases was $5.7 million as of September 30, 2024.

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 equipment operating lease assets have a total balance of $3.9 million as of September 30, 2024. The equipment and property operating leases have a weighted average interest rate of 5.4% at September 30, 2024, due in monthly installments with final maturities at various dates ranging from October 2024 to April 2027 with the weighted average remaining lease term of 1.5 years. The Company has related party operating leases with the founder of Smith Transport, where the Company 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 September 30, 2024, are summarized as follows by lease category:


(in thousands)	Operating		Finance
2024 (remaining)	$	1,846	$	1,977
2025	6,391		7,557
2026	1,497		3,840
2027	320		—
2028	—		—
Thereafter	—		—
Total minimum lease payments	$	10,054	$	13,374
Less: future payment amount for interest	465		506
Present value of minimum lease payments	$	9,589	$	12,868
Less: current portion	6,790		6,924
Lease obligations, long-term	$	2,799	$	5,944