Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

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, 2024 and 2023 (in thousands):

	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	9,546	$	11,751
Finance lease cost:
Amortization of right of use assets	1,308		845
Interest on lease liabilities	1,459		1,059
Total finance lease cost	2,767		1,904
Short-term lease cost	6,018		5,060
Variable lease cost	7,797		3,509
Total lease cost	$	26,128	$	22,224

Supplemental cash flow information related to our lease contracts for the three-month periods ended March 31, 2024 and 2023 is as follows (in thousands):

	Three Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,848	$	10,974
Operating cash flows from finance leases	1,018		1,203
Financing cash flows from finance leases	560		500
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	8,856		10,337

Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at March 31, 2024 and December 31, 2023 is as follows (in thousands, except as noted):

	March 31, 2024			December 31, 2023
Operating leases:
Other assets	$	137,114		$	137,405
Accrued expenses	28,916			30,583
Other noncurrent liabilities	114,427			113,681
Total operating lease liabilities	143,343			144,264
Finance leases:
Net property, plant and equipment	105,116			112,438
Current portion of long-term debt(a)	10,036			9,702
Long-term debt	98,487			104,484
Total finance lease liabilities	108,523			114,186
Weighted average remaining lease term (in years):
Operating leases	12.4			12.2
Finance leases	20.6			20.7
Weighted average discount rate (%):
Operating leases	4.63		%	4.74		%
Finance leases	5.64		%	4.71		%

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

Maturities of lease liabilities at March 31, 2024 were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2024	$	25,358	$	13,952
2025	30,524		9,340
2026	22,169		8,690
2027	16,935		8,690
2028	12,707		8,690
Thereafter	106,227		127,855
Total lease payments	213,920		177,217
Less imputed interest	70,577		68,694
Total	$	143,343	$	108,523

Leases

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, 2024 and 2023 (in thousands):

	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	9,546	$	11,751
Finance lease cost:
Amortization of right of use assets	1,308		845
Interest on lease liabilities	1,459		1,059
Total finance lease cost	2,767		1,904
Short-term lease cost	6,018		5,060
Variable lease cost	7,797		3,509
Total lease cost	$	26,128	$	22,224

Supplemental cash flow information related to our lease contracts for the three-month periods ended March 31, 2024 and 2023 is as follows (in thousands):

	Three Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,848	$	10,974
Operating cash flows from finance leases	1,018		1,203
Financing cash flows from finance leases	560		500
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	8,856		10,337

Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at March 31, 2024 and December 31, 2023 is as follows (in thousands, except as noted):

	March 31, 2024			December 31, 2023
Operating leases:
Other assets	$	137,114		$	137,405
Accrued expenses	28,916			30,583
Other noncurrent liabilities	114,427			113,681
Total operating lease liabilities	143,343			144,264
Finance leases:
Net property, plant and equipment	105,116			112,438
Current portion of long-term debt(a)	10,036			9,702
Long-term debt	98,487			104,484
Total finance lease liabilities	108,523			114,186
Weighted average remaining lease term (in years):
Operating leases	12.4			12.2
Finance leases	20.6			20.7
Weighted average discount rate (%):
Operating leases	4.63		%	4.74		%
Finance leases	5.64		%	4.71		%

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

Maturities of lease liabilities at March 31, 2024 were as follows (in thousands):

	Operating Leases		Finance Leases
Remainder of 2024	$	25,358	$	13,952
2025	30,524		9,340
2026	22,169		8,690
2027	16,935		8,690
2028	12,707		8,690
Thereafter	106,227		127,855
Total lease payments	213,920		177,217
Less imputed interest	70,577		68,694
Total	$	143,343	$	108,523