Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2023
Lessee, Operating Lease, Description [Abstract]  
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, 2023 and 2022, 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 2023 2022 2021
Short-term lease cost Cost of services provided, Sales, general, and administrative expenses $ 14,753  $ 12,693  $ 6,223 
Operating lease cost Cost of services provided, Sales, general, and administrative expenses 110,627  97,764  93,215 
Total lease expense $ 125,380  $ 110,457  $ 99,438 
Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases $ 109,631  $ 96,700  $ 92,032 
Other Information
Weighted-average remaining lease term - operating leases
4.8 Yrs
5.1 Yrs
Weighted-average discount rate - operating leases 3.99  % 3.67  %
Subsequent to the issuance of the Company's 2022 financial statements, management determined that certain immaterial short-term lease costs were omitted from the disclosure of short-term lease costs for the years ended December 31, 2022 and 2021. The disclosure of short-term leases costs has been restated from the amounts previously reported to correct the amount of short-term lease cost for the years ended December 31, 2022 and 2021. There was no impact on our consolidated statements of income, financial position, or cash flows.
Lease Commitments
Future minimum lease payments, including assumed exercise of renewal options at December 31, 2023 were as follows:
(in thousands)
2024 $ 103,977 
2025 88,839 
2026 66,350 
2027 36,205 
2028 17,279 
Thereafter 51,539 
Total future minimum lease payments 364,189 
Less: amount representing interest (38,617)
Total future minimum lease payments, net of interest $ 325,572 
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 $173.5 million for building leases and $190.7 million for
vehicle leases. As of December 31, 2023, the Company had additional future obligations of $17.8 million for leases that had not yet commenced.