LEASES

9 Months Ended

Sep. 30, 2022

LEASES

LEASES

NOTE F – LEASES

The Company leases, under finance and operating lease arrangements, certain facilities used primarily in the Asset-Based segment service center operations, certain revenue equipment used in the ArcBest segment operations, and certain other office equipment.

The components of operating lease expense were as follows:

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
	(in thousands)
Operating lease expense	$	8,666	$	6,575	$	23,116	$	19,801
Variable lease expense		1,176		957		3,220		3,252
Sublease income		(286)		(157)		(544)		(468)
Total operating lease expense(1)	$	9,556	$	7,375	$	25,792	$	22,585

(1) Operating lease expense excludes short-term leases with a term of 12 months or less.

The operating cash flows from operating lease activity were as follows:

	Nine Months Ended September 30
	2022		2021
	(in thousands)
Noncash change in operating right-of-use assets	$	20,356	$	17,256
Change in operating lease liabilities		(18,777)		(16,606)
Operating right-of-use-assets and lease liabilities, net	$	1,579	$	650
Cash paid for amounts included in the measurement of operating lease liabilities	$	(21,526)	$	(19,128)

Maturities of operating lease liabilities at September 30, 2022 were as follows:

					Equipment
			Land and		and
	Total		Structures(1)		Other
	(in thousands)
Remainder of 2022	$	7,277	$	7,178	$	99
2023		30,182		29,760		422
2024		28,601		28,302		299
2025		24,856		24,856		—
2026		22,616		22,616		—
Thereafter		83,884		83,884		—
Total lease payments		197,416		196,596		820
Less imputed interest		(26,596)		(26,563)		(33)
Total	$	170,820	$	170,033	$	787

(1) Excludes future minimum lease payments for leases which were executed but had not yet commenced as of September 30, 2022 totaling $41.1 million which will be paid over approximately 10 years.