Leases

12 Months Ended

Dec. 31, 2023

13. Leases

ASC Topic 842 Leases

We acquired $7.5 million and $19.1 million of operating leases for operating locations, corporate offices, certain operating equipment and light duty vehicles primarily related to the Ulterra acquisition and NexTier merger, respectively.

We acquired $5.2 million and $50.7 million of finance leases for light duty vehicles and certain operating equipment related to the Ulterra acquisition and NexTier merger, respectively.

Operating leases have remaining lease terms of approximately one month to ten years as of December 31, 2023, and finance leases have remaining lease terms of approximately one month to six years as of December 31, 2023.

Lease expense consisted of the following for the years ended December 31, 2023, 2022 and 2021 (in thousands):


	Year Ended December 31,
	2023		2022		2021
Operating lease cost	$	10,073	$	5,664	$	4,984
Finance lease cost:
Amortization of right-of-use assets		6,360		—		—
Interest on lease liabilities		1,395		—		—
Total finance lease cost		7,755		—		—
Short-term lease expense (1)		2,278		—		41
Total lease expense (2)	$	20,106	$	5,664	$	5,025

(1)

Short-term lease expense represents expense related to leases with a contract term of one year or less.

(2)

Total lease expense is recorded in operating costs for the respective segments and within “selling, general and administrative” in our consolidated statements of operations.

Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022 and 2021 is as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,935	$	6,858	$	7,323
Operating cash flows from finance leases		1,380		—		—
Financing cash flows from finance leases		15,915		—		—

Right of use assets obtained in exchange for lease obligations:
Operating leases (1)	$	34,802	$	6,530	$	6,413
Finance leases (1)		73,245		—		—

(1)

Includes right of use assets acquired in business combinations.

Supplemental balance sheet information related to leases as of December 31, 2023 and 2022 is as follows:


	December 31, 2023				December 31, 2022
Weighted Average Remaining Lease Term:
Operating leases	5.0 years			6.1 years
Finance leases	1.5 years				N/A

Weighted Average Discount Rate:
Operating leases		6.1	%			4.1	%
Finance leases		7.3	%		N/A

Maturities of operating and finance lease liabilities as of December 31, 2023 are as follows (in thousands):


Year ending December 31,	Operating			Finance
2024	$	16,435		$	46,297
2025		12,975			4,842
2026		9,387			4,850
2027		7,130			1,485
2028		4,975			1,485
Thereafter		9,354			2,080
Total lease payments		60,256			61,039
Less imputed interest		(8,867	)		(4,106	)
Total	$	51,389		$	56,933