Leases

12 Months Ended

Dec. 31, 2023

(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):


2024	$	38,943
2025		27,638
2026		24,945
2027		22,842
2028		18,318
Thereafter		79,755
Total lease payments		212,441
Less: imputed interest		(40,290	)
Operating lease liabilities	$	172,151

The following table summarizes lease costs (in thousands):


	Year Ended December 31,
	2023			2022			2021
Operating lease cost	$	42,821		$	42,319		$	40,786
Variable lease cost		2,376			1,780			1,793
Short-term lease cost		30,005			25,365			17,914
Sublease income		(3,223	)		(305	)		(1,032	)
Total lease cost	$	71,979		$	69,159		$	59,461

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


	December 31,
	2023			2022			2021
Weighted average discount rate		4.4	%		4.1	%		3.8	%
Weighted average remaining lease term	9 years			9 years			9 years