LEASES

6 Months Ended

Jun. 30, 2021

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,
	2021		2020		2021		2020
	(in thousands)
Operating lease costs	$	1,908	$	2,052	$	3,842	$	4,218
Finance lease costs:
Amortization of assets		2,782		4,784		6,796		9,507
Interest on lease liabilities		639		763		1,309		1,553
Total finance lease costs		3,421		5,547		8,105		11,060
Variable and short-term lease costs		703		284		1,286		411
Total lease costs	$	6,032	$	7,883	$	13,233	$	15,689

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

	June 30, 2021			December 31, 2020
Operating leases:	(dollars in thousands)
Operating leases - right-of-use assets	$	25,891		$	28,154
Current operating lease obligations		7,127			6,838
Long-term operating lease obligations		19,145			21,690
Total operating lease liabilities	$	26,272		$	28,528
Finance leases:
Property and equipment, at cost		86,114			86,281
Accumulated amortization		(28,595)			(22,991)
Property and equipment, net	$	57,519		$	63,290
Current finance lease obligations		11,852			11,655
Long-term finance lease obligations		48,397			54,482
	$	60,249		$	66,137
Weighted average remaining lease term:		(in months)			(in months)
Operating leases		54			60
Finance leases		37			43
Weighted average discount rate:
Operating leases		4.53	%		4.59	%
Finance leases		3.73	%		3.73	%

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

	June 30, 2021		June 30, 2020
Cash paid for amounts included in measurement of liabilities:	(in thousands)
Operating cash flows from operating leases	$	71	$	42
Operating cash flows from finance leases		1,309		1,553
Financing cash flows from finance leases		5,888		11,366
ROU assets obtained in exchange for lease liabilities:
Operating leases	$	170	$	—
Finance leases		—		8,481

OTHER COMMITMENTS

As of June 30, 2021, the Company had $27.8 million in purchase commitments for the acquisition of revenue equipment, of which none were cancellable.  It is anticipated that these purchase commitments will be funded primarily through the use of operating leases, with down payments being funded first through cash provided by operations and proceeds from the sale of used revenue equipment and secondarily from borrowings under the Company’s Credit Facility.  

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 June 30, 2021 and 2020 and $0.08 million for the six months ended June 30, 2021 and 2020.  This expense is included in the “Operations and maintenance” line item in the accompanying condensed consolidated statements of income (loss) and comprehensive income (loss).