Annual report pursuant to Section 13 and 15(d)

LEASES

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LEASES
 12 Months Ended
Dec. 31, 2024
Lessee, Operating Lease, Description [Abstract]  
LEASES LEASES
The Company leases certain buildings, vehicles, and equipment in order to reduce the risk associated with ownership. The Company elected the practical expedient approach permitted under ASC Topic 842, “Leases” not to include short-term leases with a duration of 12 months or less on the balance sheet. As of December 31, 2024 and 2023, all leases were classified as operating leases. Building leases generally carry terms of 5 to 10 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 the 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) Years Ended
December 31,
Components of Lease Expense Financial Statement Classification 2024 2023 2022
Short-term lease cost Cost of services provided, Sales, general, and administrative expenses $ 16,618  $ 14,753  $ 12,693 
Operating lease cost Cost of services provided, Sales, general, and administrative expenses 133,420  110,627  97,764 
Total lease expense $ 150,038  $ 125,380  $ 110,457 
Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases $ 132,588  $ 109,631  $ 96,700 
Other Information
Weighted-average remaining lease term - operating leases
4.4 Yrs
4.8 Yrs
Weighted-average discount rate - operating leases 4.30  % 3.99  %
Lease Commitments
Future minimum lease payments, including assumed exercise of renewal options at December 31, 2024 were as follows:
(in thousands)
2025 $ 137,395 
2026 121,355 
2027 88,654 
2028 46,532 
2029 19,748 
Thereafter 49,934 
Total future minimum lease payments 463,618 
Less: amount representing interest (46,400)
Total future minimum lease payments, net of interest $ 417,218 
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 $181.2 million for building leases and $282.4 million for vehicle leases. As of December 31, 2024, the Company had additional future obligations of $20.8 million for leases that had not yet commenced.