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Leases

3 Months Ended

Mar. 31, 2023

Leases:We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial

term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term.

Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table provides details of our lease contracts for the three-month periods ended March 31, 2023 and 2022 (in thousands):


	Three Months Ended March 31,
		2023		2022
Operating lease cost		$	11,751	$	10,611
Finance lease cost:
Amortization of right of use assets		845		430
Interest on lease liabilities		1,059		853
Total finance lease cost		1,904		1,283

Short-term lease cost		5,060		2,699
Variable lease cost		3,509		717


Total lease cost		$	22,224	$	15,310

Supplemental cash flow information related to our lease contracts for the three-month periods ended March 31, 2023 and 2022 is as follows (in thousands):


	Three Months Ended March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10,974	$	8,637
Operating cash flows from finance leases	1,203		599
Financing cash flows from finance leases	500		515
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	10,337		999

Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at March 31, 2023 and December 31, 2022 is as follows (in thousands, except as noted):


	March 31, 2023			December 31, 2022
Operating leases:
Other assets	$	128,229		$	128,173

Accrued expenses	35,343			35,515
Other noncurrent liabilities	102,125			99,269
Total operating lease liabilities	137,468			134,784
Finance leases:
Net property, plant and equipment	80,591			81,356

Current portion of long-term debt(a)	4,872			4,995
Long-term debt	73,903			74,409
Total finance lease liabilities	78,775			79,404
Weighted average remaining lease term (in years):
Operating leases	13.0			13.3
Finance leases	22.6			22.8
Weighted average discount rate (%):
Operating leases	3.72		%	3.60		%
Finance leases	4.41		%	4.41		%

(a) Balance includes accrued interest of finance lease recorded in Accrued liabilities.

Maturities of lease liabilities at March 31, 2023 were as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2023	$	31,554	$	5,437
2024	27,766		9,409
2025	15,923		6,129
2026	12,576		5,478
2027	10,717		5,478
Thereafter	113,413		91,904
Total lease payments	211,949		123,835
Less imputed interest	74,481		45,060
Total	$	137,468	$	78,775

Leases