Lease Obligations

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lease Obligations

Lease Obligations

Finance Leases

The gross amount of assets held under finance leases as of December 31, 2023 and 2022 totaled $679.9 million and $720.1 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $473.3 million and $535.3 million as of December 31, 2023 and 2022, respectively. Depreciation expense associated with finance leases totaled $103.0 million, $91.7 million and $80.1 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Operating Leases

Operating lease additions for the years ended December 31, 2023, 2022 and 2021 totaled $224.6 million, $119.1 million and $172.9 million, respectively. Acquisition-related additions totaled $32.4 million and $149.3 million, respectively, for the years ended December 31, 2022 and 2021.

For the years ended December 31, 2023, 2022 and 2021, rent expense for leases that have terms in excess of one year totaled approximately $162.1 million, $134.1 million and $107.7 million, respectively, of which $15.8 million, $11.1 million and $10.1 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $608.2 million, $377.8 million and $494.7 million for the years ended December 31, 2023, 2022, and 2021, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, which payments are included within operating activities in the consolidated statements of cash flows.

Additional Lease Information

Future minimum lease commitments as of December 31, 2023 were as follows (in millions):

	Finance  Leases		Operating Leases
2024	$	156.5	$	152.2
2025	119.4		126.2
2026	61.6		90.4
2027	21.4		46.6
2028	3.0		20.5
Thereafter	0.1		36.7
Total minimum lease payments	$	362.0	$	472.6
Less amounts representing interest	(20.2)		(41.9)
Total lease obligations, net of interest	$	341.8	$	430.7
Less current portion	144.2		137.8
Long-term portion of lease obligations, net of interest	$	197.6	$	292.9

As of December 31, 2023 and 2022, finance leases had a weighted average remaining lease term of 2.6 years and 2.8 years, respectively, and a weighted average discount rate of 4.7% and 4.0%, respectively, and as of December 31, 2023 and 2022, non-cancelable operating leases had a weighted average remaining lease term of 3.8 years and 4.5 years, respectively, and a weighted average discount rate of 4.8% and 3.6%, respectively.

Lease Obligations

Lease Obligations

Finance Leases

The gross amount of assets held under finance leases as of December 31, 2023 and 2022 totaled $679.9 million and $720.1 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $473.3 million and $535.3 million as of December 31, 2023 and 2022, respectively. Depreciation expense associated with finance leases totaled $103.0 million, $91.7 million and $80.1 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Operating Leases

Operating lease additions for the years ended December 31, 2023, 2022 and 2021 totaled $224.6 million, $119.1 million and $172.9 million, respectively. Acquisition-related additions totaled $32.4 million and $149.3 million, respectively, for the years ended December 31, 2022 and 2021.

For the years ended December 31, 2023, 2022 and 2021, rent expense for leases that have terms in excess of one year totaled approximately $162.1 million, $134.1 million and $107.7 million, respectively, of which $15.8 million, $11.1 million and $10.1 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $608.2 million, $377.8 million and $494.7 million for the years ended December 31, 2023, 2022, and 2021, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, which payments are included within operating activities in the consolidated statements of cash flows.

Additional Lease Information

Future minimum lease commitments as of December 31, 2023 were as follows (in millions):

	Finance  Leases		Operating Leases
2024	$	156.5	$	152.2
2025	119.4		126.2
2026	61.6		90.4
2027	21.4		46.6
2028	3.0		20.5
Thereafter	0.1		36.7
Total minimum lease payments	$	362.0	$	472.6
Less amounts representing interest	(20.2)		(41.9)
Total lease obligations, net of interest	$	341.8	$	430.7
Less current portion	144.2		137.8
Long-term portion of lease obligations, net of interest	$	197.6	$	292.9

As of December 31, 2023 and 2022, finance leases had a weighted average remaining lease term of 2.6 years and 2.8 years, respectively, and a weighted average discount rate of 4.7% and 4.0%, respectively, and as of December 31, 2023 and 2022, non-cancelable operating leases had a weighted average remaining lease term of 3.8 years and 4.5 years, respectively, and a weighted average discount rate of 4.8% and 3.6%, respectively.