Leases

12 Months Ended

Dec. 31, 2024

NOTE 4. LEASES

The Company enters into lease agreements primarily for office and warehouse space in all districts where it conducts business. As of December 31, 2024, all of the Company's leases are operating leases. Lease terms are either on a month-to-month basis or terminate at various times through 2040. The Company also has two long-term operating lease arrangements to use land, for which the usage rights were entirely prepaid. Usage rights for those arrangements are recognized in rent expense over the lease terms up to 2057.

Lease cost is recorded under rent and occupancy expenses in the consolidated statements of earnings and is comprised of the following for the year-ended December 31:


	2024		2023		2022
Operating lease cost	$	131,970	$	123,411	$	107,858
Variable lease cost		50,614		50,508		47,553
Total lease cost	$	182,584	$	173,919	$	155,411

Variable lease cost includes short-term lease expenses, which are insignificant.

Maturities of lease liabilities as of December 31, 2024 are as follows:


2025	$	131,830
2026		117,301
2027		96,323
2028		78,233
2029		63,473
Thereafter		189,450
Total minimum lease payments		676,610
Less imputed interest		107,673
Lease liability	$	568,937

The weighted-average remaining lease term and weighted-average discount rate are as follows:


	2024			2023
Weighted-average remaining lease term (in years)		6.79			6.68
Weighted-average discount rate		5.11	%		4.34	%

Other information related to the Company's operating leases are as follows:


	2024		2023		2022
Right-of-use assets obtained in exchange for new operating lease liabilities	$	154,197	$	105,888	$	151,654
Cash paid for amounts included in the measurement of lease liabilities	$	128,481	$	120,793	$	106,772