Leases

12 Months Ended

Dec. 31, 2022

(6) Leases

The Company currently leases various facilities and equipment under cancelable and noncancelable operating leases. The accounting for the Company’s leases may require judgments, which include determining whether a contract contains a lease, allocating the consideration between lease and non-lease components, and determining the incremental borrowing rates. Leases with an initial noncancelable term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a

straight-line basis over the lease term. The Company has also elected to combine lease and non-lease components on all classes of leased assets, except for leased towing vessels for which the Company estimates approximately 70% of the costs relate to service costs and other non-lease components. Variable lease costs relate primarily to real estate executory costs (i.e. taxes, insurance and maintenance).

Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year were as follows (in thousands):


2023	$	41,227
2024		32,716
2025		24,807
2026		21,467
2027		19,253
Thereafter		95,582
Total lease payments		235,052
Less: imputed interest		(56,468	)
Operating lease liabilities	$	178,584

The following table summarizes lease costs (in thousands):


	Year Ended December 31,
	2022			2021			2020
Operating lease cost	$	42,319		$	40,786		$	43,810
Variable lease cost		1,780			1,793			1,550
Short-term lease cost		25,365			17,914			25,387
Sublease income		(305	)		(1,032	)		(1,143	)
Total lease cost	$	69,159		$	59,461		$	69,604

The following table summarizes other supplemental information about the Company’s operating leases:


	December 31,
	2022			2021			2020
Weighted average discount rate		4.1	%		3.8	%		4.1	%
Weighted average remaining lease term	9 years			9 years			10 years