Annual report pursuant to Section 13 and 15(d)

Leases

v3.22.0.1
Leases
 12 Months Ended
Dec. 31, 2021
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 $2,050, $1,628 and $1,634 in 2021, 2020 and 2019, respectively. In 2022, the Company expects to receive aggregate future minimum rental payments under noncancelable subleases of approximately $1,058.  Noncancelable subleases expire between 2022 and 2028.

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 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 $353,347, $325,542 and $328,282, for the years ended December 31, 2021, 2020, and 2019, respectively, and were recorded in “Purchased transportation” in the Consolidated Statements of Comprehensive Income.

Total lease assets and liabilities as of December 31, 2021 and 2020 were as follows:

Lease Assets Classification December 31, 2021 December 31, 2020
Operating lease right-of-use assets Operating lease right-of-use assets $ 148,198  $ 123,338 
Finance lease assets
Property and equipment, net1
 13,797  6,642 
Total leased assets $ 161,995  $ 129,980 
Lease Liabilities Classification December 31, 2021 December 31, 2020
Current:
    Operating Current portion of operating lease liabilities $ 47,532  $ 43,680 
     Finance Current portion of debt and finance lease obligations 4,588  1,801 
Noncurrent:
   Operating Operating lease liabilities, less current portion 101,409  80,346 
    Finance Finance lease obligations, less current portion 9,571  5,010 
Total leased liabilities $ 163,100  $ 130,837 
1 Finance lease assets are recorded net of accumulated depreciation of $4,822 and $2,256 as of December 31, 2021 and 2020, respectively.
    
Total lease cost for 2021 and 2020 was as follows:
Year Ended
Classification December 31,
2021		 December 31,
2020
Operating lease cost Operating leases $ 54,561  $ 50,561 
Short-term lease cost Operating leases 14,773  8,921 
Variable lease cost Purchased transportation, operating leases and other operating expenses 367,779  339,148 
Sublease income Operating revenue (2,050) (1,628)
Finance lease cost:
Amortization of leased assets Depreciation and amortization 3,381  1,560 
Interest on leased liabilities Interest expense, net 301  197 
Total lease cost $ 438,745  $ 398,759 
Future minimum lease payments under noncancelable operating and finance leases with remaining terms greater than one year as of December 31, 2021 were as follows:
Operating Leases Finance Leases
2022 $ 52,832  $ 4,902 
2023 39,558  4,468 
2024 31,029  3,545 
2025 20,261  1,331 
2026 12,371  313 
Thereafter 15,745  449 
Total minimum lease payments 171,796  15,008 
Less: imputed interest (22,855) (849)
Present value of future minimum lease payments 148,941  14,159 
Less: current portion of lease obligations (47,532) (4,588)
Long-term lease obligations $ 101,409  $ 9,571 

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

December 31, 2021 December 31, 2020
Weighted average remaining lease term (in years):
      Operating leases 4.1 3.7
       Finance leases 3.5 4.0
Weighted average discount rate:
       Operating leases 2.9  % 3.2  %
        Finance leases 2.6  % 3.1  %

The following table summarizes the supplemental cash flow information for 2021 and 2020:

Year Ended
December 31, 2021 December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 53,981  $ 50,263 
Operating cash flows from finance leases 301  197 
Financing cash flows from finance leases 2,423  1,446 
Right-of-use assets obtained in exchange for operating lease liabilities $ 74,736  $ 72,454 
Leased assets obtained in exchange for finance lease obligations 9,673  1,927 
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 $2,050, $1,628 and $1,634 in 2021, 2020 and 2019, respectively. In 2022, the Company expects to receive aggregate future minimum rental payments under noncancelable subleases of approximately $1,058.  Noncancelable subleases expire between 2022 and 2028.

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 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 $353,347, $325,542 and $328,282, for the years ended December 31, 2021, 2020, and 2019, respectively, and were recorded in “Purchased transportation” in the Consolidated Statements of Comprehensive Income.

Total lease assets and liabilities as of December 31, 2021 and 2020 were as follows:

Lease Assets Classification December 31, 2021 December 31, 2020
Operating lease right-of-use assets Operating lease right-of-use assets $ 148,198  $ 123,338 
Finance lease assets
Property and equipment, net1
 13,797  6,642 
Total leased assets $ 161,995  $ 129,980 
Lease Liabilities Classification December 31, 2021 December 31, 2020
Current:
    Operating Current portion of operating lease liabilities $ 47,532  $ 43,680 
     Finance Current portion of debt and finance lease obligations 4,588  1,801 
Noncurrent:
   Operating Operating lease liabilities, less current portion 101,409  80,346 
    Finance Finance lease obligations, less current portion 9,571  5,010 
Total leased liabilities $ 163,100  $ 130,837 
1 Finance lease assets are recorded net of accumulated depreciation of $4,822 and $2,256 as of December 31, 2021 and 2020, respectively.
    
Total lease cost for 2021 and 2020 was as follows:
Year Ended
Classification December 31,
2021		 December 31,
2020
Operating lease cost Operating leases $ 54,561  $ 50,561 
Short-term lease cost Operating leases 14,773  8,921 
Variable lease cost Purchased transportation, operating leases and other operating expenses 367,779  339,148 
Sublease income Operating revenue (2,050) (1,628)
Finance lease cost:
Amortization of leased assets Depreciation and amortization 3,381  1,560 
Interest on leased liabilities Interest expense, net 301  197 
Total lease cost $ 438,745  $ 398,759 
Future minimum lease payments under noncancelable operating and finance leases with remaining terms greater than one year as of December 31, 2021 were as follows:
Operating Leases Finance Leases
2022 $ 52,832  $ 4,902 
2023 39,558  4,468 
2024 31,029  3,545 
2025 20,261  1,331 
2026 12,371  313 
Thereafter 15,745  449 
Total minimum lease payments 171,796  15,008 
Less: imputed interest (22,855) (849)
Present value of future minimum lease payments 148,941  14,159 
Less: current portion of lease obligations (47,532) (4,588)
Long-term lease obligations $ 101,409  $ 9,571 

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

December 31, 2021 December 31, 2020
Weighted average remaining lease term (in years):
      Operating leases 4.1 3.7
       Finance leases 3.5 4.0
Weighted average discount rate:
       Operating leases 2.9  % 3.2  %
        Finance leases 2.6  % 3.1  %

The following table summarizes the supplemental cash flow information for 2021 and 2020:

Year Ended
December 31, 2021 December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 53,981  $ 50,263 
Operating cash flows from finance leases 301  197 
Financing cash flows from finance leases 2,423  1,446 
Right-of-use assets obtained in exchange for operating lease liabilities $ 74,736  $ 72,454 
Leased assets obtained in exchange for finance lease obligations 9,673  1,927 
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 $2,050, $1,628 and $1,634 in 2021, 2020 and 2019, respectively. In 2022, the Company expects to receive aggregate future minimum rental payments under noncancelable subleases of approximately $1,058.  Noncancelable subleases expire between 2022 and 2028.

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 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 $353,347, $325,542 and $328,282, for the years ended December 31, 2021, 2020, and 2019, respectively, and were recorded in “Purchased transportation” in the Consolidated Statements of Comprehensive Income.

Total lease assets and liabilities as of December 31, 2021 and 2020 were as follows:

Lease Assets Classification December 31, 2021 December 31, 2020
Operating lease right-of-use assets Operating lease right-of-use assets $ 148,198  $ 123,338 
Finance lease assets
Property and equipment, net1
 13,797  6,642 
Total leased assets $ 161,995  $ 129,980 
Lease Liabilities Classification December 31, 2021 December 31, 2020
Current:
    Operating Current portion of operating lease liabilities $ 47,532  $ 43,680 
     Finance Current portion of debt and finance lease obligations 4,588  1,801 
Noncurrent:
   Operating Operating lease liabilities, less current portion 101,409  80,346 
    Finance Finance lease obligations, less current portion 9,571  5,010 
Total leased liabilities $ 163,100  $ 130,837 
1 Finance lease assets are recorded net of accumulated depreciation of $4,822 and $2,256 as of December 31, 2021 and 2020, respectively.
    
Total lease cost for 2021 and 2020 was as follows:
Year Ended
Classification December 31,
2021		 December 31,
2020
Operating lease cost Operating leases $ 54,561  $ 50,561 
Short-term lease cost Operating leases 14,773  8,921 
Variable lease cost Purchased transportation, operating leases and other operating expenses 367,779  339,148 
Sublease income Operating revenue (2,050) (1,628)
Finance lease cost:
Amortization of leased assets Depreciation and amortization 3,381  1,560 
Interest on leased liabilities Interest expense, net 301  197 
Total lease cost $ 438,745  $ 398,759 
Future minimum lease payments under noncancelable operating and finance leases with remaining terms greater than one year as of December 31, 2021 were as follows:
Operating Leases Finance Leases
2022 $ 52,832  $ 4,902 
2023 39,558  4,468 
2024 31,029  3,545 
2025 20,261  1,331 
2026 12,371  313 
Thereafter 15,745  449 
Total minimum lease payments 171,796  15,008 
Less: imputed interest (22,855) (849)
Present value of future minimum lease payments 148,941  14,159 
Less: current portion of lease obligations (47,532) (4,588)
Long-term lease obligations $ 101,409  $ 9,571 

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

December 31, 2021 December 31, 2020
Weighted average remaining lease term (in years):
      Operating leases 4.1 3.7
       Finance leases 3.5 4.0
Weighted average discount rate:
       Operating leases 2.9  % 3.2  %
        Finance leases 2.6  % 3.1  %

The following table summarizes the supplemental cash flow information for 2021 and 2020:

Year Ended
December 31, 2021 December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 53,981  $ 50,263 
Operating cash flows from finance leases 301  197 
Financing cash flows from finance leases 2,423  1,446 
Right-of-use assets obtained in exchange for operating lease liabilities $ 74,736  $ 72,454 
Leased assets obtained in exchange for finance lease obligations 9,673  1,927