Leases

12 Months Ended

Dec. 31, 2023

NOTE 7 – LEASES

The Company has operating and finance leases for facilities and equipment which have remaining terms ranging from 1 to 15 years. The leases may include options to extend the lease periods for up to 5 years at rates approximating market rates and/or options to terminate the leases within 1 year. The leases may include a residual value guarantee or a responsibility to return the property to its original state of use. A limited number of leases contain provisions that provide for rental increases based on consumer price indices. The change in lease cost resulting from changes in these indices was included within variable lease cost.

The Company’s lease cost is recognized on a straight-line basis over the lease term and is primarily included within indirect and selling expenses on the consolidated statements of comprehensive income. Lease cost consisted of the following:


	Year Ended December 31,
	2023			2022			2021
Operating lease cost	$	25,037		$	37,889		$	35,469
Finance lease cost - amortization of right-of-use assets		2,040			598			—
Finance lease cost - interest		602			179			—
Short-term lease cost		669			509			453
Variable lease cost		222			146			43
Sublease income		(28	)		(92	)		—
Total lease cost	$	28,542		$	39,229		$	35,965

Future minimum lease payments under non-cancellable operating and finance leases as of December 31, 2023 were as follows:


	Operating			Finance
December 31, 2024	$	25,419		$	3,041
December 31, 2025		26,621			3,041
December 31, 2026		22,899			3,041
December 31, 2027		18,578			3,041
December 31, 2028		15,926			2,985
Thereafter		131,690			2,966
Total future minimum lease payments		241,133			18,115
Less: Interest		(45,264	)		(1,719	)
Total	$	195,869		$	16,396

Other information related to operating and finance leases is as follows:


	Year Ended December 31,
	2023			2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	20,368		$	40,123
Right-of-use assets obtained in exchange for new operating lease liabilities	$	18,590		$	13,906
Property and equipment obtained in exchange for finance lease liabilities	$	338			18,319
Weighted-average remaining lease term - operating leases
Operating leases		11.6			11.7
Finance leases		6.0			7.0
Weighted-average discount rate - operating leases
Operating leases		3.6	%		3.3	%
Finance leases		3.4	%		3.4	%

The change in operating lease right-of-use assets and lease liabilities are presented within cash flows from operating activities on the consolidated statements of cash flows.

During the years ended December 31, 2023 and 2022, the Company ceased use of office facilities and recorded impairment of $6.8 million and $8.4 million, respectively, related to operating lease right-of-use asset and leasehold improvement, and accrued other future lease-related expenses of $3.2 million and $4.9 million, respectively. The amounts are included as part of indirect and selling expenses on the Company's consolidated statements of comprehensive income.