LEASES

3 Months Ended

Mar. 31, 2021

LEASES

LEASES

NOTE 7 – LEASES

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

	Three Months Ended
	March 31,
	2021		2020
	(in thousands)
Operating lease costs	$	1,934	$	2,166
Finance lease costs:
Amortization of assets		4,014		4,723
Interest on lease liabilities		670		790
Total finance lease costs		4,684		5,513
Variable and short-term lease costs		583		127
Total lease costs	$	7,201	$	7,806

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

	March 31, 2021		December 31, 2020
Operating leases:	(dollars in thousands)
Operating leases - right-of-use assets	$	26,668	$	28,154
Current operating lease obligations		6,559		6,838
Long-term operating lease obligations		20,487		21,690
Total operating lease liabilities	$	27,046	$	28,528
Finance leases:
Property and equipment, at cost		86,243		86,281
Accumulated amortization		(25,434)		(22,991)
Property and equipment, net	$	60,809	$	63,290
Current finance lease obligations		11,745		11,655
Long-term finance lease obligations		51,401		54,482
	$	63,146	$	66,137

Weighted average remaining lease term:	(in months)		(in months)
Operating leases	58		60
Finance leases	40		43
Weighted average discount rate:
Operating leases	4.58	%	4.59	%
Finance leases	3.73	%	3.73	%

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

	March 31, 2021		March 31, 2020
Cash paid for amounts included in measurement of liabilities:	(in thousands)
Operating cash flows from operating leases	$	4	$	33
Operating cash flows from finance leases		670		790
Financing cash flows from finance leases		2,992		4,150
ROU assets obtained in exchange for lease liabilities:
Operating leases	$	170	$	—
Finance leases		—		1,184

OTHER COMMITMENTS

As of March 31, 2021, the Company had $17.9 million in purchase commitments for the acquisition of revenue equipment, of which none were cancellable.  An additional $10.9 million in revenue equipment purchase commitments was added subsequent to March 31, 2021.  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 for the three months ended March 31, 2021 and 2020.  This expense is included in the “Operations and maintenance” line item in the accompanying condensed consolidated statement of income (loss) and comprehensive income (loss).