Leases

12 Months Ended

Dec. 31, 2023

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:


	2023		2022		2021
Operating lease cost	$	123,411	$	107,858	$	98,219
Variable lease cost		50,508		47,553		39,607
Total lease cost	$	173,919	$	155,411	$	137,826

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

Maturities of lease liabilities as of December 31, 2023 are as follows:


2024	$	119,565
2025		112,117
2026		93,952
2027		73,521
2028		55,430
Thereafter		150,445
Total minimum lease payments		605,030
Less imputed interest		77,297
Lease liability	$	527,733

As of December 31, 2023, the Company had $90 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:


	2023			2022
Weighted-average remaining lease term (in years)		6.68			7.10
Weighted-average discount rate		4.34	%		3.63	%

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


	2023		2022		2021
Right-of-use assets obtained in exchange for new operating lease liabilities	$	105,888	$	151,654	$	117,409
Cash paid for amounts included in the measurement of lease liabilities	$	120,793	$	106,772	$	95,804