Lease Obligations

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Lease Obligations

Lease Obligations

Finance Leases

The gross amount of assets held under finance leases as of December 31, 2024 and 2023 totaled $713.9 million and $679.9 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $473.0 million and $473.3 million as of December 31, 2024 and 2023, respectively. Depreciation expense associated with finance leases totaled $81.7 million, $103.0 million and $91.7 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Operating Leases

Operating lease additions for the years ended December 31, 2024, 2023 and 2022 totaled $166.8 million, $224.6 million and $119.1 million, respectively. Acquisition-related additions totaled $32.4 million for the year ended December 31, 2022.

For the years ended December 31, 2024, 2023 and 2022, rent expense for leases that have terms in excess of one year totaled approximately $195.8 million, $162.1 million and $134.1 million, respectively, of which $17.8 million, $15.8 million and $11.1 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $547.0 million, $608.2 million and $377.8 million for the years ended December 31, 2024, 2023, and 2022, 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, 2024 were as follows (in millions):

	Finance  Leases		Operating Leases
2025	$	148.2	$	161.4
2026	89.7		125.2
2027	49.8		74.5
2028	24.0		38.0
2029	6.6		15.1
Thereafter	—		34.5
Total minimum lease payments	$	318.3	$	448.7
Less amounts representing interest	(20.4)		(41.2)
Total lease obligations, net of interest	$	297.9	$	407.5
Less current portion	137.6		146.2
Long-term portion of lease obligations, net of interest	$	160.3	$	261.3

The following table presents weighted average remaining lease terms and discount rates for finance and non-cancelable operating leases as of the dates indicated:

	December 31,
	2024		2023
Weighted average remaining lease term (in years):
Finance leases	2.7		2.6
Operating leases	3.7		3.8
Weighted average discount rate:
Finance leases	4.8	%	4.7	%
Operating leases	5.1	%	4.8	%

Lease Obligations

Lease Obligations

Finance Leases

The gross amount of assets held under finance leases as of December 31, 2024 and 2023 totaled $713.9 million and $679.9 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $473.0 million and $473.3 million as of December 31, 2024 and 2023, respectively. Depreciation expense associated with finance leases totaled $81.7 million, $103.0 million and $91.7 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Operating Leases

Operating lease additions for the years ended December 31, 2024, 2023 and 2022 totaled $166.8 million, $224.6 million and $119.1 million, respectively. Acquisition-related additions totaled $32.4 million for the year ended December 31, 2022.

For the years ended December 31, 2024, 2023 and 2022, rent expense for leases that have terms in excess of one year totaled approximately $195.8 million, $162.1 million and $134.1 million, respectively, of which $17.8 million, $15.8 million and $11.1 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $547.0 million, $608.2 million and $377.8 million for the years ended December 31, 2024, 2023, and 2022, 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, 2024 were as follows (in millions):

	Finance  Leases		Operating Leases
2025	$	148.2	$	161.4
2026	89.7		125.2
2027	49.8		74.5
2028	24.0		38.0
2029	6.6		15.1
Thereafter	—		34.5
Total minimum lease payments	$	318.3	$	448.7
Less amounts representing interest	(20.4)		(41.2)
Total lease obligations, net of interest	$	297.9	$	407.5
Less current portion	137.6		146.2
Long-term portion of lease obligations, net of interest	$	160.3	$	261.3

The following table presents weighted average remaining lease terms and discount rates for finance and non-cancelable operating leases as of the dates indicated:

	December 31,
	2024		2023
Weighted average remaining lease term (in years):
Finance leases	2.7		2.6
Operating leases	3.7		3.8
Weighted average discount rate:
Finance leases	4.8	%	4.7	%
Operating leases	5.1	%	4.8	%