Leases

12 Months Ended

Dec. 31, 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 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):


2025	$	42,202
2026		38,115
2027		30,263
2028		22,860
2029		12,483
Thereafter		76,621
Total lease payments		222,544
Less: imputed interest		(38,647	)
Operating lease liabilities	$	183,897

The following table summarizes lease costs (in thousands):


	Year Ended December 31,
	2024			2023			2022
Operating lease cost	$	45,844		$	42,821		$	42,319
Variable lease cost		1,936			2,376			1,780
Short-term lease cost		38,991			30,005			25,365
Sublease income		(3,396	)		(3,223	)		(305	)
Total lease cost	$	83,375		$	71,979		$	69,159

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


	December 31,
	2024			2023			2022
Weighted average discount rate		4.6	%		4.4	%		4.1	%
Weighted average remaining lease term	8 years			9 years			9 years