Leases

6 Months Ended

Jun. 30, 2024

(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 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):


	June 30, 2024			December 31, 2023
2024	$	20,448		$	38,943
2025		35,387			27,638
2026		31,865			24,945
2027		25,643			22,842
2028		19,683			18,318
Thereafter		84,490			79,755
Total lease payments		217,516			212,441
Less: imputed interest		(39,867	)		(40,290	)
Operating lease liabilities	$	177,649		$	172,151

The following table summarizes lease costs (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Operating lease cost	$	11,599		$	10,653		$	22,880		$	21,230
Variable lease cost		578			690			1,071			1,448
Short-term lease cost		8,809			9,211			18,988			15,430
Sublease income		(830	)		(798	)		(1,684	)		(1,641	)
	$	20,156		$	19,756		$	41,255		$	36,467

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


	June 30, 2024			December 31, 2023
Weighted average discount rate		4.6	%		4.4	%
Weighted average remaining lease term	9 years			9 years