Company: PAMT
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001437749-25-025711
Chunk: 21

Company: PAMT CORP
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 21
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 liabilities approximate fair value due to their short maturities.
    
   The carrying amount for the line of credit approximates fair value because the line of credit interest rate is adjusted frequently.
    
   For long-term debt other than the lines of credit, the fair values are estimated using discounted cash flow analyses, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The carrying value and estimated fair value of this other long-term debt at  June 30, 2025 was as follows:

       Carrying Value    Estimated Fair Value  
   (in thousands)  
         
 Long-term debt  $331,233  $331,233 

   The Company has not elected the fair value option for any of its financial instruments.

   NOTE K: NOTES PAYABLE
   During the first six months of 2025, the Company’s subsidiaries entered into installment obligations totaling approximately $45.5 million for the purpose of purchasing revenue equipment and other assets. These obligations are payable in monthly installments and are recorded in long-term debt and current maturities on the condensed consolidated balance sheets. The terms of these obligations range from 60 to 84 months.

   NOTE L: COMMITMENTS AND CONTINGENCIES
   We are involved in certain claims and pending litigation arising from the ordinary conduct of business. We also provide accruals for claims within our self-insured retention amounts. Since  September 1, 2020, we have been self-insured for certain layers of auto liability claims in excess of $2.0 million. We currently specifically reserve for claims that are expected to exceed $2.0 million when fully developed, based on the facts and circumstances of those claims. Based on our knowledge of the facts, and in certain cases, opinions of outside counsel, we believe the resolution of such claims and pending litigation will not have a material effect on our financial position, results of operations or cash flows. However, if we experience claims that are not covered by our insurance or that exceed our estimated claim reserve, it could increase the volatility of our earnings and have a materially adverse effect on our financial condition, results of operations or cash flows.
    
   During the first six months of 2025, we maintained a revolving line of credit with a borrowing limit of $60.0 million that contains certain restrictive covenants, which must be maintained by the Company on a consolidated basis. Under the terms of the loan agreement, the Company must maintain a debt to adjusted