Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.23.3
LEASES
 9 Months Ended
Sep. 30, 2023
Lessee, Operating Lease, Description [Abstract]  
LEASES LEASES
The Company leases certain buildings, vehicles, and equipment. The Company elected the practical expedient approach permitted under Accounting Standards Codification Topic 842 “Leases”, not to include short-term leases with a duration of 12 months or less on the balance sheet. As of September 30, 2023 and December 31, 2022, all leases were classified as operating leases. Building leases generally carry terms of 1 to 15 years with annual rent escalations at fixed amounts per the lease. Vehicle leases generally carry a fixed term of one year with renewal options to extend the lease on a monthly basis resulting in lease terms up to 7 years depending on the class of vehicle. The exercise of renewal options is at the Company’s sole discretion. It is reasonably certain that the Company will exercise certain renewal options on its vehicle leases. The measurement of right-of-use assets and liabilities for vehicle leases includes the fixed payments associated with such renewal periods. We separate lease and non-lease components of contracts. Our lease agreements do not contain any material variable payments, residual value guarantees, early termination penalties or restrictive covenants.
The Company uses the rate implicit in the lease when available; however, most of our leases do not provide a readily determinable implicit rate. Accordingly, we estimate our incremental borrowing rate based on information available at lease commencement.
(in thousands, except Other Information) Three Months Ended September 30, Nine Months Ended September 30,
Lease Classification Financial Statement Classification 2023 2022 2023 2022
Short-term lease cost Cost of services provided, Sales, general, and administrative expenses $ 42  $ 46  $ 190  $ 108 
Operating lease cost Cost of services provided, Sales, general, and administrative expenses 28,020  24,419  81,687  72,057 
Total lease expense $ 28,062  $ 24,465  $ 81,877  $ 72,165 
Other Information:
Weighted-average remaining lease term - operating leases 5.02 years 5.2 years
Weighted-average discount rate - operating leases 3.89  % 3.41  %
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 80,997  $ 71,240 
Lease Commitments
Future minimum lease payments, including assumed exercise of renewal options as of September 30, 2023, were as follows:
(in thousands)
2023 (excluding the nine months ended September 30, 2023) $ 27,043 
2024 93,654 
2025 75,157 
2026 53,726 
2027 27,096 
2028 15,829 
Thereafter 50,095 
Total future minimum lease payments 342,600 
Less: Amount representing interest 36,071 
Total future minimum lease payments, net of interest $ 306,529 
Future commitments presented in the table above include lease payments in renewal periods for which it is reasonably certain that the Company will exercise the renewal option. Total future minimum lease payments for operating leases, including the amount representing interest, are comprised of $177.3 million for building leases and $165.3 million for vehicle leases. As of September 30, 2023, the Company had additional future obligations of $15.3 million for leases that had not yet commenced.