LEASES

12 Months Ended

Dec. 31, 2023

Lessee, Operating Lease, Description [Abstract]

LEASES

LEASES

The Company leases certain buildings, vehicles, and equipment in order to reduce the risk associated with ownership. The Company elected the practical expedient approach permitted under ASC Topic 842, “Leases” not to include short-term leases with a duration of 12 months or less on the balance sheet. As of December 31, 2023 and 2022, all leases were classified as operating leases. Building leases generally carry terms of 5 to 10 years with annual rent escalations at fixed amounts per the lease. Vehicle leases generally carry a fixed term of one year with renewal options to extend the lease on a monthly basis resulting in lease terms up to 7 years depending on the class of vehicle. The exercise of renewal options is at the Company’s sole discretion. It is reasonably certain that the Company will exercise the renewal options on its vehicle leases. The measurement of right-of-use assets and liabilities for vehicle leases includes the fixed payments associated with such renewal periods. We separate lease and non-lease components of contracts. Our lease agreements do not contain any material variable payments, residual value guarantees, early termination penalties or restrictive covenants.

The Company uses the rate implicit in the lease when available; however, most of our leases do not provide a readily determinable implicit rate. Accordingly, we estimate our incremental borrowing rate based on information available at lease commencement.

(in thousands, except Other Information)		Years Ended December 31,
Components of Lease Expense	Financial Statement Classification	2023			2022			2021
Short-term lease cost	Cost of services provided, Sales, general, and administrative expenses	$	14,753		$	12,693		$	6,223
Operating lease cost	Cost of services provided, Sales, general, and administrative expenses	110,627			97,764			93,215
Total lease expense		$	125,380		$	110,457		$	99,438
Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases		$	109,631		$	96,700		$	92,032
Other Information
Weighted-average remaining lease term - operating leases		4.8 Yrs			5.1 Yrs
Weighted-average discount rate - operating leases		3.99		%	3.67		%

Subsequent to the issuance of the Company's 2022 financial statements, management determined that certain immaterial short-term lease costs were omitted from the disclosure of short-term lease costs for the years ended December 31, 2022 and 2021. The disclosure of short-term leases costs has been restated from the amounts previously reported to correct the amount of short-term lease cost for the years ended December 31, 2022 and 2021. There was no impact on our consolidated statements of income, financial position, or cash flows.

Lease Commitments

Future minimum lease payments, including assumed exercise of renewal options at December 31, 2023 were as follows:

(in thousands)
2024	$	103,977
2025	88,839
2026	66,350
2027	36,205
2028	17,279
Thereafter	51,539
Total future minimum lease payments	364,189
Less: amount representing interest	(38,617)
Total future minimum lease payments, net of interest	$	325,572

Future commitments presented in the table above include lease payments in renewal periods for which it is reasonably certain that the Company will exercise the renewal option. Total future minimum lease payments for operating leases, including the amount representing interest, are comprised of $173.5 million for building leases and $190.7 million for

vehicle leases. As of December 31, 2023, the Company had additional future obligations of $17.8 million for leases that had not yet commenced.