Leases

12 Months Ended

Dec. 31, 2022

NOTE 4. LEASES

The Company enters into lease agreements primarily for office and warehouse space in all districts where it conducts business. As of December 31, 2022, all of the Company's leases are operating leases. Lease terms are either on a month-to-month basis or terminate at various times through 2040. The Company also has two long-term operating lease arrangements to use land, for which the usage rights were entirely prepaid. Usage rights for those arrangements are recognized in rent expense over the lease terms up to 2057.

Lease cost is recorded under rent and occupancy expenses in the consolidated statements of earnings and is comprised of the following for the year-ended December 31:


	2022		2021		2020
Operating lease cost	$	107,858	$	98,219	$	91,436
Variable lease cost		47,553		39,607		26,857
Total lease cost	$	155,411	$	137,826	$	118,293

Variable lease cost includes short-term lease expenses, which are insignificant.

Maturities of lease liabilities as of December 31, 2022 are as follows:


2023	$	112,010
2024		97,113
2025		88,513
2026		71,776
2027		56,552
Thereafter		159,363
Total minimum lease payments		585,327
Less imputed interest		66,862
Lease liability	$	518,465

As of December 31, 2022, the Company had $101 million in operating lease obligations with maturities through 2034 for several office and warehouse locations not included in the lease liabilities, as the lease had not yet commenced.

The weighted-average remaining lease term and weighted-average discount rate are as follows:


	2022			2021
Weighted-average remaining lease term (in years)		7.10			7.45
Weighted-average discount rate		3.63	%		3.71	%

Other information related to the Company's operating leases are as follows:


	2022		2021		2020
Right-of-use assets obtained in exchange for new operating lease liabilities	$	151,654	$	117,409	$	109,515
Cash paid for amounts included in the measurement of lease liabilities	$	106,772	$	95,804	$	90,101