XML 25 R13.htm IDEA: XBRL DOCUMENT v3.20.2
LEASES
9 Months Ended
Sep. 30, 2020
LEASES  
LEASES

NOTE 7 – LEASES

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

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

    

2020

    

2019

    

2020

    

2019

(in thousands)

Operating lease costs

$

1,640

$

2,355

$

5,858

$

6,870

Finance lease costs:

Amortization of assets

 

4,840

 

3,903

 

14,347

 

9,553

Interest on lease liabilities

 

789

 

671

 

2,342

 

1,820

Total finance lease costs

 

5,629

 

4,574

 

16,689

 

11,373

Variable and short-term lease costs

 

837

 

71

 

1,248

 

844

Total lease costs

$

8,106

$

7,000

$

23,795

$

19,087

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

September 30, 2020

December 31, 2019

Operating leases:

(dollars in thousands)

Operating lease right-of-use assets

$

9,714

 

$

11,775

Current operating lease obligations

 

2,732

 

6,050

Long-term operating lease obligations

 

7,209

 

5,812

Total operating lease liabilities

$

9,941

$

11,862

Finance leases:

 

Property and equipment, at cost

 

118,726

 

120,236

Accumulated amortization

 

(38,143)

 

(30,990)

Property and equipment, net

$

80,583

$

89,246

Current finance lease obligations

 

23,717

 

30,779

Long-term finance lease obligations

 

57,451

 

58,397

$

81,168

$

89,176

Weighted average remaining lease term:

 

(in months)

 

(in months)

Operating leases

 

64

 

45

Finance leases

 

39

 

44

Weighted average discount rate:

Operating leases

 

3.61

%

 

4.03

%

Finance leases

 

3.53

%

 

3.34

%

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

September 30, 2020

September 30, 2019

Cash paid for amounts included in measurement of liabilities:

(in thousands)

Operating cash flows from operating leases

$

138

$

48

Operating cash flows from finance leases

2,342

1,820

Financing cash flows from finance leases

16,490

10,021

ROU assets obtained in exchange for lease liabilities:

Operating leases

$

3,400

$

1,393

Finance leases

8,481

27,348

OTHER COMMITMENTS

As of September 30, 2020, the Company had $26.7 million in purchase commitments for the acquisition of 189 tractors, of which $6.7 million was noncancellable.  These purchase commitments may be funded through funds provided by operations, borrowings under the Company’s Credit Facility, sales of used revenue equipment, or the use of finance and operating leases.

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 these spaces was approximately $0.04 million and $0.03 million for the three months ended September 30, 2020 and 2019, respectively, and $0.1 million for the nine months ended September 30, 2020 and

2019.  This expense is included in the “Operations and maintenance” line item in the accompanying condensed consolidated statement of income (loss) and comprehensive income (loss).