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Leases

12 Months Ended

Dec. 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 years ended December 31, 2023, 2022 and 2021 (in thousands):


	Year Ended December 31,
	2023		2022		2021
Operating lease cost	$	48,238	$	43,809	$	42,338
Finance lease cost:
Amortization of right of use assets	5,302		3,377		614
Interest on lease liabilities	5,070		3,504		3,010
Total finance lease cost	10,372		6,881		3,624

Short-term lease cost	20,309		13,985		11,084
Variable lease cost	25,075		8,064		8,002


Total lease cost	$	103,994	$	72,739	$	65,048

Supplemental cash flow information related to our lease contracts for the years ended December 31, 2023, 2022 and 2021 is as follows (in thousands):


	Year Ended December 31,
	2023		2022		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	49,261	$	36,629	$	33,030
Operating cash flows from finance leases	4,671		3,389		1,776
Financing cash flows from finance leases	2,165		1,432		687
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	48,655		15,913		56,814
Finance leases	46,773		3,976		17,096

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


	December 31,
	2023			2022
Operating leases:
Other assets	$	137,405		$	128,173

Accrued expenses	30,583			35,515
Other noncurrent liabilities	113,681			99,269
Total operating lease liabilities	144,264			134,784
Finance leases:
Net property, plant and equipment	112,438			81,356

Current portion of long-term debt(a)	9,702			4,995
Long-term debt	104,484			74,409
Total finance lease liabilities	114,186			79,404
Weighted average remaining lease term (in years):
Operating leases	12.2			13.3
Finance leases	20.7			22.8
Weighted average discount rate (%):
Operating leases	4.74		%	3.60		%
Finance leases	4.71		%	4.41		%

(a) Balance includes accrued interest of finance lease.

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


	Operating Leases		Finance Leases
2024	$	33,646	$	12,386
2025	28,980		9,229
2026	20,667		8,566
2027	15,664		8,566
2028	11,102		8,566
Thereafter	107,058		128,547
Total lease payments	217,117		175,860
Less imputed interest	72,853		61,674
Total	$	144,264	$	114,186

Leases