LEASES

3 Months Ended

Mar. 31, 2023

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 Asset-Light segment operations, and certain other office equipment.

The components of operating lease expense were as follows:

	Three Months Ended March 31
	2023		2022
	(in thousands)
Operating lease expense	$	9,166	$	7,083
Variable lease expense		1,540		976
Sublease income		(114)		(161)
Total operating lease expense(1)	$	10,592	$	7,898

(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:

	Three Months Ended March 31
	2023		2022
	(in thousands)
Noncash change in operating right-of-use assets	$	7,485	$	6,171
Change in operating lease liabilities		(5,915)		(6,157)
Operating right-of-use-assets and lease liabilities, net	$	1,570	$	14
Cash paid for amounts included in the measurement of operating lease liabilities	$	(7,596)	$	(7,071)

Maturities of operating lease liabilities at March 31, 2023, were as follows:

					Equipment
			Land and		and
	Total		Structures(1)		Other
	(in thousands)
Remainder of 2023	$	26,455	$	26,161	$	294
2024		35,844		35,527		317
2025		32,060		32,037		23
2026		29,118		29,118		—
2027		22,883		22,883		—
Thereafter		87,528		87,528		—
Total lease payments		233,888		233,254		634
Less imputed interest		(35,169)		(35,147)		(22)
Total	$	198,719	$	198,107	$	612

(1) Excludes future minimum lease payments for leases which were executed but had not yet commenced as of March 31, 2023, totaling $32.0 million which will be paid over approximately 10 years.