Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Leases

Certain subsidiaries of the Company lease office space and equipment under long-term non-cancelable lease agreements which expire at various dates through 2033. Leases with an initial term of 12 months or less are not recorded on the balance sheet, instead the lease expense is recorded on a straight-line basis over the lease term. For lease agreements entered into, we combine lease and non-lease components. Some leases include options to extend the lease term or terminate the lease prior to the end of the lease term. 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.

The leases generally provide for fixed annual rentals plus certain other costs or credits. Some leases include rental payments based on a percentage of revenue over contractual levels or based on an index or rate. Our lease agreements do not include any material residual value guarantees or material restrictive covenants.

The following table summarizes the leases included in the consolidated balance sheets as follows:

		December 31,
(In thousands)	Balance Sheet Location	2022		2021
Assets
Operating	Operating lease right-of-use assets	$	108,229	$	125,866
Finance	Property and equipment, net	10,982		12,080
Total lease assets		$	119,211	$	137,946
Liabilities
Current:
Operating	Current portion of lease obligations	$	32,207	$	32,929
Finance	Current portion of lease obligations	4,204		3,667
		36,411		36,596
Noncurrent:
Operating	Lease obligations	105,768		128,319
Finance	Lease obligations	19,031		23,520
		124,799		151,839
Total lease liabilities		$	161,210	$	188,435

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date.

The following table summarizes the lease costs included in the consolidated statement of income:

		December 31,
(In thousands)	Income Statement Location	2022		2021
Operating lease costs	Selling, general and administrative expenses	$	27,186	$	28,189
Finance lease costs:
Amortization of leased assets	Depreciation and amortization	1,098		2,105
Interest on lease liabilities	Interest expense	1,894		2,346
Short term lease costs	Selling, general and administrative expenses	248		206
Variable lease costs	Selling, general and administrative expenses	1,468		854
Total net lease costs		$	31,894	$	33,700

The following table summarizes the maturity of lease liabilities for operating and finance leases as of December 31, 2022:

(In thousands)	Operating Leases		Finance Leases		Total
2023	$	37,365	$	5,786	$	43,151
2024	36,215		5,812		42,027
2025	31,994		5,838		37,832
2026	27,717		2,087		29,804
2027	12,636		1,428		14,064
Thereafter	7,462		7,140		14,602
Total lease payments	153,389		28,091		181,480
Less: Interest	15,414		4,856		20,270
Present value of lease liabilities	$	137,975	$	23,235	$	161,210

The following table summarizes the weighted average remaining lease term and discount rate for operating and finance leases:

	December 31, 2022		December 31, 2021
Weighted average remaining lease term (years):
Operating leases	4.6		5.1
Finance leases	6.6		7.8
Weighted average discount rate:
Operating leases	4.6	%	4.5	%
Finance leases	7.5	%	7.8	%

The following table summarizes the supplemental cash paid for amounts in the measurement of lease liabilities:

(In thousands)	December 31, 2022		December 31, 2021
Operating cash flows from operating leases	$	39,857	$	40,000
Operating cash flows from finance leases	1,947		1,789
Financing cash flows from finance leases	3,576		3,800

Leases

Leases

Certain subsidiaries of the Company lease office space and equipment under long-term non-cancelable lease agreements which expire at various dates through 2033. Leases with an initial term of 12 months or less are not recorded on the balance sheet, instead the lease expense is recorded on a straight-line basis over the lease term. For lease agreements entered into, we combine lease and non-lease components. Some leases include options to extend the lease term or terminate the lease prior to the end of the lease term. 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.

The leases generally provide for fixed annual rentals plus certain other costs or credits. Some leases include rental payments based on a percentage of revenue over contractual levels or based on an index or rate. Our lease agreements do not include any material residual value guarantees or material restrictive covenants.

The following table summarizes the leases included in the consolidated balance sheets as follows:

		December 31,
(In thousands)	Balance Sheet Location	2022		2021
Assets
Operating	Operating lease right-of-use assets	$	108,229	$	125,866
Finance	Property and equipment, net	10,982		12,080
Total lease assets		$	119,211	$	137,946
Liabilities
Current:
Operating	Current portion of lease obligations	$	32,207	$	32,929
Finance	Current portion of lease obligations	4,204		3,667
		36,411		36,596
Noncurrent:
Operating	Lease obligations	105,768		128,319
Finance	Lease obligations	19,031		23,520
		124,799		151,839
Total lease liabilities		$	161,210	$	188,435

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date.

The following table summarizes the lease costs included in the consolidated statement of income:

		December 31,
(In thousands)	Income Statement Location	2022		2021
Operating lease costs	Selling, general and administrative expenses	$	27,186	$	28,189
Finance lease costs:
Amortization of leased assets	Depreciation and amortization	1,098		2,105
Interest on lease liabilities	Interest expense	1,894		2,346
Short term lease costs	Selling, general and administrative expenses	248		206
Variable lease costs	Selling, general and administrative expenses	1,468		854
Total net lease costs		$	31,894	$	33,700

The following table summarizes the maturity of lease liabilities for operating and finance leases as of December 31, 2022:

(In thousands)	Operating Leases		Finance Leases		Total
2023	$	37,365	$	5,786	$	43,151
2024	36,215		5,812		42,027
2025	31,994		5,838		37,832
2026	27,717		2,087		29,804
2027	12,636		1,428		14,064
Thereafter	7,462		7,140		14,602
Total lease payments	153,389		28,091		181,480
Less: Interest	15,414		4,856		20,270
Present value of lease liabilities	$	137,975	$	23,235	$	161,210

The following table summarizes the weighted average remaining lease term and discount rate for operating and finance leases:

	December 31, 2022		December 31, 2021
Weighted average remaining lease term (years):
Operating leases	4.6		5.1
Finance leases	6.6		7.8
Weighted average discount rate:
Operating leases	4.6	%	4.5	%
Finance leases	7.5	%	7.8	%

The following table summarizes the supplemental cash paid for amounts in the measurement of lease liabilities:

(In thousands)	December 31, 2022		December 31, 2021
Operating cash flows from operating leases	$	39,857	$	40,000
Operating cash flows from finance leases	1,947		1,789
Financing cash flows from finance leases	3,576		3,800