LEASES AND OTHER COMMITMENTS

6 Months Ended

Jun. 30, 2022

LEASES AND OTHER COMMITMENTS

LEASES AND OTHER COMMITMENTS

NOTE 7 – LEASES AND OTHER COMMITMENTS

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(in thousands)
Operating lease costs	$	2,224	$	1,908	$	4,254	$	3,842
Finance lease costs:
Amortization of assets		4,134		2,782		7,277		6,796
Interest on lease liabilities		910		639		1,543		1,309
Total finance lease costs		5,044		3,421		8,820		8,105
Variable and short-term lease costs		413		703		911		1,286
Total lease costs	$	7,681	$	6,032	$	13,985	$	13,233

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

	June 30, 2022			December 31, 2021
Operating leases:	(dollars in thousands)
Operating leases - right-of-use assets	$	25,450		$	22,898
Current operating lease obligations		7,221			6,679
Long-term operating lease obligations		18,665			16,644
Total operating lease liabilities	$	25,886		$	23,323
Finance leases and assets subject to sale leasebacks:
Property and equipment, at cost		156,379			137,736
Accumulated amortization		(51,436)			(47,699)
Property and equipment, net	$	104,943		$	90,037
Finance lease obligations:
Current finance lease obligations		16,834			14,095
Long-term finance lease obligations		69,688			56,274
	$	86,522		$	70,369
Weighted average remaining lease term:		(in months)			(in months)
Operating leases		51			50
Finance leases		37			35
Weighted average discount rate:
Operating leases		4.14	%		4.53	%
Finance leases		3.30	%		3.69	%

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

	June 30, 2022		June 30, 2021
Cash paid for amounts included in measurement of liabilities:	(in thousands)
Operating cash flows from operating leases	$	214	$	71
Operating cash flows from finance leases		910		1,309
Financing cash flows from finance leases		12,290		5,888
Assets obtained in exchange for lease liabilities:
Operating leases	$	5,842	$	170
Finance leases		28,102		—

OTHER COMMITMENTS

As of June 30, 2022, the Company had $53.7 million in purchase commitments for the acquisition of revenue equipment, of which $13.3 million was cancellable.  It is anticipated that these purchase commitments may be funded  through cash provided by operations, borrowings under the Company’s Credit Facility, proceeds from the sale of used revenue equipment or the use of finance and operating leases.