Annual report [Section 13 and 15(d), not S-K Item 405]

Leases

v3.25.1
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