XML 27 R15.htm IDEA: XBRL DOCUMENT v3.23.3
Lease Obligations
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Lease Obligations Lease Obligations
In the ordinary course of business, the Company enters into agreements that provide financing for machinery and equipment and for other of its facility, vehicle and equipment needs, including certain related party leases. As of September 30, 2023, the Company’s leases have remaining lease terms of up to 15 years. Lease agreements may contain renewal clauses, which, if elected, generally extend the term of the lease for 1 to 5 years for both equipment and facility leases. Certain lease agreements may also contain options to purchase the leased property and/or options to terminate the lease. In addition, lease agreements may include periodic adjustments to payment amounts for inflation or other variables, or may require payments for taxes, insurance, maintenance or other expenses, which are generally referred to as non-lease components. The Company’s lease agreements do not contain significant residual value guarantees or material restrictive covenants.
Finance Leases
The gross amount of assets held under finance leases as of September 30, 2023 and December 31, 2022 totaled $690.1 million and $720.1 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $483.5 million and $535.3 million as of September 30, 2023 and December 31, 2022, respectively. Depreciation expense associated with finance leases totaled $26.8 million and $22.8 million for the three month periods ended September 30, 2023 and 2022, respectively, and totaled $79.3 million and $63.2 million for the nine month periods ended September 30, 2023 and 2022, respectively.
Operating Leases
Operating lease additions for the three month periods ended September 30, 2023 and 2022 totaled $75.1 million and $12.7 million, respectively, and for the nine month periods ended September 30, 2023 and 2022, totaled $198.6 million and $58.1 million, respectively. For the three month periods ended September 30, 2023 and 2022, rent expense for leases that have terms in excess of one year totaled approximately $44.0 million and $30.6 million, respectively, of which $3.9 million and $2.3 million, respectively, represented variable lease costs. For the nine month periods ended September 30, 2023 and 2022, rent expense for such leases totaled approximately $116.7 million and $98.5 million, respectively, of which $11.5 million and $7.8 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $169.9 million and $98.8 million for the three month periods ended September 30, 2023 and 2022, respectively, and totaling approximately $411.7 million and $258.1 million for the nine month periods ended September 30, 2023 and 2022, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, which payments are included within operating activities in the consolidated statements of cash flows.
Additional Lease Information
Future minimum lease commitments as of September 30, 2023 were as follows (in millions):
 Finance
Leases
Operating
Leases
2023, remaining three months$43.4 $38.6 
2024151.5 140.8 
2025114.8 115.7 
202657.3 79.5 
202717.8 36.7 
Thereafter
3.1 38.2 
Total minimum lease payments
$387.9 $449.5 
Less amounts representing interest
(21.8)(38.4)
Total lease obligations, net of interest
$366.1 $411.1 
Less current portion
146.6 131.8 
Long-term portion of lease obligations, net of interest
$219.5 $279.3 
As of September 30, 2023, finance leases had a weighted average remaining lease term of 2.8 years, with a weighted average discount rate of 4.5%, and non-cancelable operating leases had a weighted average remaining lease term of 3.9 years, with a weighted average discount rate of 4.6%.
Lease Obligations Lease Obligations
In the ordinary course of business, the Company enters into agreements that provide financing for machinery and equipment and for other of its facility, vehicle and equipment needs, including certain related party leases. As of September 30, 2023, the Company’s leases have remaining lease terms of up to 15 years. Lease agreements may contain renewal clauses, which, if elected, generally extend the term of the lease for 1 to 5 years for both equipment and facility leases. Certain lease agreements may also contain options to purchase the leased property and/or options to terminate the lease. In addition, lease agreements may include periodic adjustments to payment amounts for inflation or other variables, or may require payments for taxes, insurance, maintenance or other expenses, which are generally referred to as non-lease components. The Company’s lease agreements do not contain significant residual value guarantees or material restrictive covenants.
Finance Leases
The gross amount of assets held under finance leases as of September 30, 2023 and December 31, 2022 totaled $690.1 million and $720.1 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $483.5 million and $535.3 million as of September 30, 2023 and December 31, 2022, respectively. Depreciation expense associated with finance leases totaled $26.8 million and $22.8 million for the three month periods ended September 30, 2023 and 2022, respectively, and totaled $79.3 million and $63.2 million for the nine month periods ended September 30, 2023 and 2022, respectively.
Operating Leases
Operating lease additions for the three month periods ended September 30, 2023 and 2022 totaled $75.1 million and $12.7 million, respectively, and for the nine month periods ended September 30, 2023 and 2022, totaled $198.6 million and $58.1 million, respectively. For the three month periods ended September 30, 2023 and 2022, rent expense for leases that have terms in excess of one year totaled approximately $44.0 million and $30.6 million, respectively, of which $3.9 million and $2.3 million, respectively, represented variable lease costs. For the nine month periods ended September 30, 2023 and 2022, rent expense for such leases totaled approximately $116.7 million and $98.5 million, respectively, of which $11.5 million and $7.8 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $169.9 million and $98.8 million for the three month periods ended September 30, 2023 and 2022, respectively, and totaling approximately $411.7 million and $258.1 million for the nine month periods ended September 30, 2023 and 2022, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, which payments are included within operating activities in the consolidated statements of cash flows.
Additional Lease Information
Future minimum lease commitments as of September 30, 2023 were as follows (in millions):
 Finance
Leases
Operating
Leases
2023, remaining three months$43.4 $38.6 
2024151.5 140.8 
2025114.8 115.7 
202657.3 79.5 
202717.8 36.7 
Thereafter
3.1 38.2 
Total minimum lease payments
$387.9 $449.5 
Less amounts representing interest
(21.8)(38.4)
Total lease obligations, net of interest
$366.1 $411.1 
Less current portion
146.6 131.8 
Long-term portion of lease obligations, net of interest
$219.5 $279.3 
As of September 30, 2023, finance leases had a weighted average remaining lease term of 2.8 years, with a weighted average discount rate of 4.5%, and non-cancelable operating leases had a weighted average remaining lease term of 3.9 years, with a weighted average discount rate of 4.6%.