LEASES

6 Months Ended

Jun. 30, 2026

NOTE E – 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.

The components of operating lease expense were as follows:


	Three Months Ended				Six Months Ended
	June 30				June 30
	2026		2025		2026		2025

	(in thousands)
Operating lease expense	$	11,929	$	11,630	$	23,829	$	22,767
Variable lease expense		2,336		2,658		4,224		4,707
Sublease income		(1,608)		(1,162)		(3,209)		(2,159)
Total operating lease expense	$	12,657	$	13,126	$	24,844	$	25,315

The operating cash flows from operating lease activity were as follows:


	Six Months Ended
	June 30
	2026		2025

	(in thousands)
Noncash change in operating right-of-use assets⁽¹⁾	$	18,730	$	16,326
Cash payments to obtain right-of-use assets		—		(11,500)
Change in operating lease liabilities		(18,745)		(16,247)
Changes in operating right-of-use assets and lease liabilities, net	$	(15)	$	(11,421)

Supplemental cash flow information
Cash paid for amounts included in the measurement of operating lease liabilities	$	23,803	$	22,734
Right-of-use assets obtained in exchange for operating lease liabilities	$	22,228	$	41,978

(1)	Excludes right-of-use asset impairment of $8.4 million recorded during the second quarter of 2026, as discussed further below.

Lease Impairment Charges

Long-lived assets, including operating right-of-use assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. During the second quarter of 2026, the Company evaluated a portion of leased office space within the Company's Asset-Light operating segment for impairment in connection with the probable sublease of the space. Based on this assessment, the Company determined that the carrying value of the asset was not recoverable and recorded asset impairment charges of $8.8 million within operating expenses, consisting of an $8.4 million impairment of a right-of-use asset and the remaining amount related to leasehold improvements (see Note B).

There were no other significant changes to the Company’s operating lease arrangements during the six months ended June 30, 2026.