LEASES

6 Months Ended

Jun. 30, 2020

LEASES

LEASES

NOTE 7 – LEASES

The components of lease expense for each of the periods presented are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
	(in thousands)
Operating lease costs	$	2,052	$	2,356	$	4,218	$	4,515
Finance lease costs:
Amortization of assets		4,784		2,959		9,507		5,650
Interest on lease liabilities		763		603		1,553		1,149
Total finance lease costs		5,547		3,562		11,060		6,799
Variable and short-term lease costs		284		212		411		773
Total lease costs	$	7,883	$	6,130	$	15,689	$	12,087

Supplemental information and balance sheet location related to leases is as follows:

	June 30, 2020			December 31, 2019
Operating leases:	(dollars in thousands)
Operating lease right-of-use assets	$	7,866		$	11,775
Current operating lease obligations		3,028			6,050
Long-term operating lease obligations		4,966			5,812
Total operating lease liabilities	$	7,994		$	11,862
Finance leases:
Property and equipment, at cost		121,889			120,236
Accumulated amortization		(35,990)			(30,990)
Property and equipment, net	$	85,899		$	89,246
Current finance lease obligations		25,928			30,779
Long-term finance lease obligations		60,363			58,397
	$	86,291		$	89,176
Weighted average remaining lease term:		(in months)			(in months)
Operating leases		52			45
Finance leases		42			44
Weighted average discount rate:
Operating leases		4.00	%		4.03	%
Finance leases		3.50	%		3.34	%

Supplemental cash flow information related to leases is as follows for the six months ended:

	June 30, 2020		June 30, 2019
Cash paid for amounts included in measurement of liabilities:	(in thousands)
Operating cash flows from operating leases	$	42	$	3,885
Operating cash flows from finance leases		1,553		1,149
Financing cash flows from finance leases		11,366		6,375
ROU assets obtained in exchange for lease liabilities:
Operating leases		—		931
Finance leases		8,481		16,303

OTHER COMMITMENTS

As of June 30, 2020, the Company had no noncancellable commitments for the acquisition of revenue or non-revenue equipment.

During July 2020, the Company entered into an agreement to take delivery of 189 tractors through a lease agreement.

RELATED PARTY LEASE

In the normal course of business, the Company leases office and shop space from a related party under a monthly operating lease.  Rent expense for this space was approximately $0.04 million for the three months ended June 30, 2020 and 2019, and $0.08 million for the six months ended June 30, 2020 and 2019, respectively.  This expense is included in the “Operations and maintenance” line item in the accompanying condensed consolidated statement of (loss) income and comprehensive (loss) income.