LEASES

12 Months Ended

Dec. 31, 2024

LEASES

LEASES

NOTE G – LEASES

The Company has operating lease arrangements for certain facilities and revenue equipment used in the Asset-Based and Asset-Light segment operations and certain other facilities and office equipment. Current operating leases have remaining

terms of 11.5 years or less, some of which include one or more options to renew, with renewal option terms up to ten years. There is one early termination option available on an operating lease as of December 31, 2024, provided notification is given 24 months prior to the end of the lease term, which is included in the right-of-use assets and liabilities as of December 31, 2024.

The components of operating lease expense for the years ended December 31 were as follows:

	2024		2023		2022
	(in thousands)
Operating lease expense	$	42,772	$	38,794	$	31,790
Variable lease expense		7,183		6,804		4,188
Sublease income		(2,631)		(246)		(391)
Total operating lease expense	$	47,324	$	45,352	$	35,587

The operating cash flows from operating lease activity for the years ended December 31 were as follows:

	2024		2023		2022
	(in thousands)
Noncash change in operating right-of-use assets	$	34,445	$	33,470	$	27,465
Cash payments to obtain right-of-use assets		(7,752)		—		—
Change in operating lease liabilities		(33,898)		(30,550)		(24,513)
Changes in operating right-of-use assets and lease liabilities, net	$	(7,205)	$	2,920	$	2,952
Supplemental cash flow information
Cash paid for amounts included in the measurement of operating lease liabilities	$	42,173	$	35,759	$	28,830
Right-of-use assets obtained in exchange for operating lease liabilities	$	49,452	$	62,425	$	87,294

The weighted-average remaining lease term for our outstanding operating lease obligations was 7.4 years as of both December 31, 2024 and 2023. As of December 31, 2024 and 2023, the weighted-average discount rate was 4.59% and 4.29%, respectively. Maturities of operating lease liabilities at December 31, 2024 were as follows:

	Operating
	Lease
	Liabilities
	(in thousands)
2025	$	43,660
2026		40,800
2027		33,992
2028		30,325
2029		25,307
Thereafter		93,557
Total lease payments		267,641
Less imputed interest		(43,299)
Total	$	224,342

Lease Impairment Charges

In 2023, lease impairment charges totaling $30.2 million were recognized as a component of operating expenses for impairment of certain long-lived operating right-of-use assets that were made available for sublease and continued to be classified as held and used. The fair value measurements related to the impairment are further discussed in Note C.