Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.23.2
LEASES
 6 Months Ended
Jun. 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 June 30, 2023, and December 31, 2022, all leases were classified as operating leases. Building leases generally carry terms of 5 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 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) Three Months Ended June 30, Six Months Ended June 30,
Lease Classification Financial Statement Classification 2023 2022 2023 2022
Short-term lease cost Cost of services provided, Sales, general, and administrative expenses $ 81  $ 36  $ 148  $ 62 
Operating lease cost Cost of services provided, Sales, general, and administrative expenses 27,480  23,615  53,667  47,638 
Total lease expense $ 27,561  $ 23,651  $ 53,815  $ 47,700 
Other Information:
Weighted-average remaining lease term - operating leases 4.9 years 5.4 years
Weighted-average discount rate - operating leases 3.82  % 3.34  %
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 53,212  $ 47,099 
Lease Commitments
Future minimum lease payments, including assumed exercise of renewal options as of June 30, 2023, were as follows:
(in thousands)
2023 (excluding the six months ended June 30, 2023) $ 51,531 
2024 84,780 
2025 65,720 
2026 44,647 
2027 21,008 
2028 13,234 
Thereafter 40,365 
Total future minimum lease payments 321,285 
Less: Amount representing interest 34,166 
Total future minimum lease payments, net of interest $ 287,119 
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 $164.4 million for building leases and $156.9 million for vehicle leases. As of June 30, 2023, the Company had additional future obligations of $11.9 million for leases that had not yet commenced.