Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

Leases

The Company leases certain land, buildings, equipment and office equipment under finance and operating leases. Equipment includes tractors, straight trucks, forklifts and trailers. Equipment under a finance lease is amortized over the shorter of the lease term or its estimated useful life.

The Company subleases certain facilities to independent third parties. Since the Company is not relieved of its obligation under these leases, a right-of-use lease asset and corresponding operating lease liability is recorded. Sublease rental income was $5,457, $2,991 and $2,762 in 2024, 2023 and 2022, respectively. 

The Company does not recognize a right-of-use asset or lease liability with respect to operating leases with an initial lease term of 12 months or less, and recognizes expense on such leases on a straight-line basis over the lease term. The Company does not account for lease components separately from nonlease components. The Company has certain leases that include one or more options to renew, with renewal periods ranging from one to 25 years. The exercise of the lease renewal options is at the discretion of the Company and is included in the determination of the right-of-use asset and operating lease liability when the option is reasonably certain of being exercised. The depreciable life of right-of-use assets and leasehold improvements is limited by the expected lease term. The Company has certain lease agreements for equipment that include variable rental payments based on estimated mileage. The variable rental payments are adjusted for periodically based on actual mileage. In addition, the Company has certain lease agreements that include variable rental payments that are adjusted periodically for inflation based on the index rate as defined by the applicable government authority. The Company’s leases generally do not provide an implicit rate, and therefore, the Company applies its incremental borrowing rate using information available at lease commencement or modification to determine the present value of lease payments. The incremental borrowing rate is an estimate based on the interest rate the Company would pay to borrow an amount equal to the lease payments on a collateralized basis and over a similar term, within a similar economic environment. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants.

The Company has contracts with Leased Capacity Providers. Since the contracts explicitly identify the tractors operated by the Leased Capacity Providers, the Company determined the contracts contain an embedded lease. The compensation of Leased Capacity Providers, as specified in the contract, is variable based upon a rate per shipment and a rate per mile. The variable amounts are excluded from the calculation of the right-of-use lease asset and corresponding operating lease liability and are disclosed as variable lease costs. Variable lease costs related to the embedded leases were $434,689, $409,080 and $440,756, for the years ended December 31, 2024, 2023, and 2022, respectively, and were recorded in “Purchased transportation” in the Consolidated Statements of Comprehensive Income.

Total lease assets and liabilities as of December 31, 2024 and 2023 were as follows:

Lease Assets		Classification	December 31, 2024		December 31, 2023
Operating lease right-of-use assets		Operating lease right-of-use assets	$	410,084	$	111,552
Finance lease assets		Property and equipment, net1	44,363		38,015
	Total leased assets		$	454,447	$	149,567
Lease Liabilities		Classification	December 31, 2024		December 31, 2023
Current:
Operating		Current portion of operating lease liabilities	$	96,440	$	44,344
Finance		Current portion of debt and finance lease obligations	16,930		12,645
Noncurrent:
Operating		Operating lease liabilities, less current portion	325,640		71,598
Finance		Finance lease obligations, less current portion	30,858		26,736
	Total leased liabilities		$	469,868	$	155,323
1 Finance lease assets are recorded net of accumulated depreciation of $30,805 and $22,051 as of December 31, 2024 and 2023, respectively.

Total lease cost for 2024 and 2023 was as follows:

		Year Ended
	Classification	December 31, 2024		December 31, 2023
Operating lease cost	Operating leases	$	122,854	$	54,604
Short-term lease cost	Operating leases	14,623		13,672
Variable lease cost	Purchased transportation, operating leases and other operating expenses	434,689		428,385
Sublease income	Operating revenue	(5,457)		(2,991)
Finance lease cost:
Amortization of leased assets	Depreciation and amortization	20,194		11,102
Interest on leased liabilities	Interest expense, net	3,383		1,395
Total lease cost		$	590,286	$	506,167

Future minimum lease payments under noncancelable operating and finance leases with remaining terms greater than one year as of December 31, 2024 were as follows:

	Operating Leases		Finance Leases
2025	120,844		19,414
2026	102,130		15,772
2027	78,133		11,305
2028	64,976		4,509
2029	53,885		758
Thereafter	81,821		184
Total minimum lease payments	501,789		51,942
Less: imputed interest	(79,709)		(4,154)
Present value of future minimum lease payments	422,080		47,788
Less: current portion of lease obligations	(96,440)		(16,930)
Long-term lease obligations	$	325,640	$	30,858

The following table summarizes the weighted-average remaining lease term and weighted average discount rate:

	December 31, 2024		December 31, 2023
Weighted average remaining lease term (in years):
Operating leases	5.1		3.0
Finance leases	3.0		3.6
Weighted average discount rate:
Operating leases	6.4	%	3.4	%
Finance leases	5.8	%	5.5	%

The following table summarizes the supplemental cash flow information for 2024 and 2023:

	Year Ended
	December 31, 2024		December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	114,574	$	54,462
Operating cash flows from finance leases	3,384		1,395
Financing cash flows from finance leases	18,323		11,074
Right-of-use assets obtained in exchange for finance lease liabilities	$	—	$	—
Right-of-use assets obtained in exchange for operating lease liabilities	153,009		29,884
Leased assets obtained in exchange for finance lease obligations	12,404		25,217

Leases

Leases

The Company leases certain land, buildings, equipment and office equipment under finance and operating leases. Equipment includes tractors, straight trucks, forklifts and trailers. Equipment under a finance lease is amortized over the shorter of the lease term or its estimated useful life.

The Company subleases certain facilities to independent third parties. Since the Company is not relieved of its obligation under these leases, a right-of-use lease asset and corresponding operating lease liability is recorded. Sublease rental income was $5,457, $2,991 and $2,762 in 2024, 2023 and 2022, respectively. 

The Company does not recognize a right-of-use asset or lease liability with respect to operating leases with an initial lease term of 12 months or less, and recognizes expense on such leases on a straight-line basis over the lease term. The Company does not account for lease components separately from nonlease components. The Company has certain leases that include one or more options to renew, with renewal periods ranging from one to 25 years. The exercise of the lease renewal options is at the discretion of the Company and is included in the determination of the right-of-use asset and operating lease liability when the option is reasonably certain of being exercised. The depreciable life of right-of-use assets and leasehold improvements is limited by the expected lease term. The Company has certain lease agreements for equipment that include variable rental payments based on estimated mileage. The variable rental payments are adjusted for periodically based on actual mileage. In addition, the Company has certain lease agreements that include variable rental payments that are adjusted periodically for inflation based on the index rate as defined by the applicable government authority. The Company’s leases generally do not provide an implicit rate, and therefore, the Company applies its incremental borrowing rate using information available at lease commencement or modification to determine the present value of lease payments. The incremental borrowing rate is an estimate based on the interest rate the Company would pay to borrow an amount equal to the lease payments on a collateralized basis and over a similar term, within a similar economic environment. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants.

The Company has contracts with Leased Capacity Providers. Since the contracts explicitly identify the tractors operated by the Leased Capacity Providers, the Company determined the contracts contain an embedded lease. The compensation of Leased Capacity Providers, as specified in the contract, is variable based upon a rate per shipment and a rate per mile. The variable amounts are excluded from the calculation of the right-of-use lease asset and corresponding operating lease liability and are disclosed as variable lease costs. Variable lease costs related to the embedded leases were $434,689, $409,080 and $440,756, for the years ended December 31, 2024, 2023, and 2022, respectively, and were recorded in “Purchased transportation” in the Consolidated Statements of Comprehensive Income.

Total lease assets and liabilities as of December 31, 2024 and 2023 were as follows:

Lease Assets		Classification	December 31, 2024		December 31, 2023
Operating lease right-of-use assets		Operating lease right-of-use assets	$	410,084	$	111,552
Finance lease assets		Property and equipment, net1	44,363		38,015
	Total leased assets		$	454,447	$	149,567
Lease Liabilities		Classification	December 31, 2024		December 31, 2023
Current:
Operating		Current portion of operating lease liabilities	$	96,440	$	44,344
Finance		Current portion of debt and finance lease obligations	16,930		12,645
Noncurrent:
Operating		Operating lease liabilities, less current portion	325,640		71,598
Finance		Finance lease obligations, less current portion	30,858		26,736
	Total leased liabilities		$	469,868	$	155,323
1 Finance lease assets are recorded net of accumulated depreciation of $30,805 and $22,051 as of December 31, 2024 and 2023, respectively.

Total lease cost for 2024 and 2023 was as follows:

		Year Ended
	Classification	December 31, 2024		December 31, 2023
Operating lease cost	Operating leases	$	122,854	$	54,604
Short-term lease cost	Operating leases	14,623		13,672
Variable lease cost	Purchased transportation, operating leases and other operating expenses	434,689		428,385
Sublease income	Operating revenue	(5,457)		(2,991)
Finance lease cost:
Amortization of leased assets	Depreciation and amortization	20,194		11,102
Interest on leased liabilities	Interest expense, net	3,383		1,395
Total lease cost		$	590,286	$	506,167

Future minimum lease payments under noncancelable operating and finance leases with remaining terms greater than one year as of December 31, 2024 were as follows:

	Operating Leases		Finance Leases
2025	120,844		19,414
2026	102,130		15,772
2027	78,133		11,305
2028	64,976		4,509
2029	53,885		758
Thereafter	81,821		184
Total minimum lease payments	501,789		51,942
Less: imputed interest	(79,709)		(4,154)
Present value of future minimum lease payments	422,080		47,788
Less: current portion of lease obligations	(96,440)		(16,930)
Long-term lease obligations	$	325,640	$	30,858

The following table summarizes the weighted-average remaining lease term and weighted average discount rate:

	December 31, 2024		December 31, 2023
Weighted average remaining lease term (in years):
Operating leases	5.1		3.0
Finance leases	3.0		3.6
Weighted average discount rate:
Operating leases	6.4	%	3.4	%
Finance leases	5.8	%	5.5	%

The following table summarizes the supplemental cash flow information for 2024 and 2023:

	Year Ended
	December 31, 2024		December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	114,574	$	54,462
Operating cash flows from finance leases	3,384		1,395
Financing cash flows from finance leases	18,323		11,074
Right-of-use assets obtained in exchange for finance lease liabilities	$	—	$	—
Right-of-use assets obtained in exchange for operating lease liabilities	153,009		29,884
Leased assets obtained in exchange for finance lease obligations	12,404		25,217

Leases

Leases

The Company leases certain land, buildings, equipment and office equipment under finance and operating leases. Equipment includes tractors, straight trucks, forklifts and trailers. Equipment under a finance lease is amortized over the shorter of the lease term or its estimated useful life.

The Company subleases certain facilities to independent third parties. Since the Company is not relieved of its obligation under these leases, a right-of-use lease asset and corresponding operating lease liability is recorded. Sublease rental income was $5,457, $2,991 and $2,762 in 2024, 2023 and 2022, respectively. 

The Company does not recognize a right-of-use asset or lease liability with respect to operating leases with an initial lease term of 12 months or less, and recognizes expense on such leases on a straight-line basis over the lease term. The Company does not account for lease components separately from nonlease components. The Company has certain leases that include one or more options to renew, with renewal periods ranging from one to 25 years. The exercise of the lease renewal options is at the discretion of the Company and is included in the determination of the right-of-use asset and operating lease liability when the option is reasonably certain of being exercised. The depreciable life of right-of-use assets and leasehold improvements is limited by the expected lease term. The Company has certain lease agreements for equipment that include variable rental payments based on estimated mileage. The variable rental payments are adjusted for periodically based on actual mileage. In addition, the Company has certain lease agreements that include variable rental payments that are adjusted periodically for inflation based on the index rate as defined by the applicable government authority. The Company’s leases generally do not provide an implicit rate, and therefore, the Company applies its incremental borrowing rate using information available at lease commencement or modification to determine the present value of lease payments. The incremental borrowing rate is an estimate based on the interest rate the Company would pay to borrow an amount equal to the lease payments on a collateralized basis and over a similar term, within a similar economic environment. The Company’s lease agreements do not contain any residual value guarantees or restrictive covenants.

The Company has contracts with Leased Capacity Providers. Since the contracts explicitly identify the tractors operated by the Leased Capacity Providers, the Company determined the contracts contain an embedded lease. The compensation of Leased Capacity Providers, as specified in the contract, is variable based upon a rate per shipment and a rate per mile. The variable amounts are excluded from the calculation of the right-of-use lease asset and corresponding operating lease liability and are disclosed as variable lease costs. Variable lease costs related to the embedded leases were $434,689, $409,080 and $440,756, for the years ended December 31, 2024, 2023, and 2022, respectively, and were recorded in “Purchased transportation” in the Consolidated Statements of Comprehensive Income.

Total lease assets and liabilities as of December 31, 2024 and 2023 were as follows:

Lease Assets		Classification	December 31, 2024		December 31, 2023
Operating lease right-of-use assets		Operating lease right-of-use assets	$	410,084	$	111,552
Finance lease assets		Property and equipment, net1	44,363		38,015
	Total leased assets		$	454,447	$	149,567
Lease Liabilities		Classification	December 31, 2024		December 31, 2023
Current:
Operating		Current portion of operating lease liabilities	$	96,440	$	44,344
Finance		Current portion of debt and finance lease obligations	16,930		12,645
Noncurrent:
Operating		Operating lease liabilities, less current portion	325,640		71,598
Finance		Finance lease obligations, less current portion	30,858		26,736
	Total leased liabilities		$	469,868	$	155,323
1 Finance lease assets are recorded net of accumulated depreciation of $30,805 and $22,051 as of December 31, 2024 and 2023, respectively.

Total lease cost for 2024 and 2023 was as follows:

		Year Ended
	Classification	December 31, 2024		December 31, 2023
Operating lease cost	Operating leases	$	122,854	$	54,604
Short-term lease cost	Operating leases	14,623		13,672
Variable lease cost	Purchased transportation, operating leases and other operating expenses	434,689		428,385
Sublease income	Operating revenue	(5,457)		(2,991)
Finance lease cost:
Amortization of leased assets	Depreciation and amortization	20,194		11,102
Interest on leased liabilities	Interest expense, net	3,383		1,395
Total lease cost		$	590,286	$	506,167

Future minimum lease payments under noncancelable operating and finance leases with remaining terms greater than one year as of December 31, 2024 were as follows:

	Operating Leases		Finance Leases
2025	120,844		19,414
2026	102,130		15,772
2027	78,133		11,305
2028	64,976		4,509
2029	53,885		758
Thereafter	81,821		184
Total minimum lease payments	501,789		51,942
Less: imputed interest	(79,709)		(4,154)
Present value of future minimum lease payments	422,080		47,788
Less: current portion of lease obligations	(96,440)		(16,930)
Long-term lease obligations	$	325,640	$	30,858

The following table summarizes the weighted-average remaining lease term and weighted average discount rate:

	December 31, 2024		December 31, 2023
Weighted average remaining lease term (in years):
Operating leases	5.1		3.0
Finance leases	3.0		3.6
Weighted average discount rate:
Operating leases	6.4	%	3.4	%
Finance leases	5.8	%	5.5	%

The following table summarizes the supplemental cash flow information for 2024 and 2023:

	Year Ended
	December 31, 2024		December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	114,574	$	54,462
Operating cash flows from finance leases	3,384		1,395
Financing cash flows from finance leases	18,323		11,074
Right-of-use assets obtained in exchange for finance lease liabilities	$	—	$	—
Right-of-use assets obtained in exchange for operating lease liabilities	153,009		29,884
Leased assets obtained in exchange for finance lease obligations	12,404		25,217