Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2023
Lessee, Operating Lease, Description [Abstract]  
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 March 31, 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.
Three Months Ended March 31,
(in thousands, except Other Information)
Lease Classification Financial Statement Classification 2023 2022
Short-term lease cost Cost of services provided, Sales, general, and administrative expenses $ 67  $ 26 
Operating lease cost Cost of services provided, Sales, general, and administrative expenses 26,187  24,023 
Total lease expense $ 26,254  $ 24,049 
Other Information:
Weighted-average remaining lease term - operating leases 5.0 years 5.5 years
Weighted-average discount rate - operating leases 3.73  % 3.54  %
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 25,965  $ 23,758 
Lease Commitments
Future minimum lease payments, including assumed exercise of renewal options as of March 31, 2023 were as follows:
(in thousands)
2023 (excluding the three months ended March 31, 2023) $ 71,814 
2024 75,649 
2025 57,061 
2026 37,087 
2027 17,741 
2028 12,061 
Thereafter 39,726 
Total future minimum lease payments 311,139 
Less: Amount representing interest 32,298 
Total future minimum lease payments, net of interest $ 278,841 
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 $149.5 million for building leases and $161.6 million for vehicle leases. As of March 31, 2023, the Company had additional future obligations of $10.8 million for leases that had not yet commenced.