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Leases

12 Months Ended

Dec. 31, 2023

We lease office space, distribution centers, land, vehicles and equipment. Lease agreements with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at our sole discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Certain of our lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table provides information about the financial statement classification of our lease balances reported within the consolidated balance sheets as of December 31, 2023 and December 31, 2022 (in thousands):


		December 31,
Leases	Classification	2023		2022
Assets
Operating lease assets	Other assets	$	84,956	$	76,160
Finance lease assets	Property and equipment(a)	—		59
Total lease assets		$	84,956	$	76,219
Liabilities
Current
Operating lease liabilities	Accrued expenses and other current liabilities	$	20,582	$	19,213
Finance lease liabilities	Current portion of long-term debt	—		28
Non-current
Operating lease liabilities	Other liabilities	71,033		63,324
Total lease liabilities		$	91,615	$	82,565


(a)			Recorded net of accumulated amortization of $48,000 as of December 31, 2022.

The following table provides information about the financial statement classification of our lease expenses reported within the consolidated statement of operations for the years ended December 31, 2023 and 2022 (in thousands):


		December 31,
Lease cost	Classification	2023		2022
Operating lease cost (a)	Selling and administrative expenses	$	24,054	$	23,986
Finance lease cost
Amortization of leased assets	Selling and administrative expenses	16		29
Interest on lease liabilities	Interest expense, net	—		2
Total lease cost		$	24,070	$	24,017


(a)			Excludes short-term and variable lease costs, which are immaterial.

Future minimum lease payments under non-cancelable leases as of December 31, 2023 are as follows (in thousands):


	Operating leases
2024	$	23,811
2025	20,084
2026	17,113
2027	13,818
2028	10,161
After 2028	17,386
Total lease payments	102,373
Less: Interest	(10,758)
Present value of lease liabilities	$	91,615

The following table provides information about the remaining lease terms and discount rates applied as of December 31, 2023 and 2022:


	December 31,
	2023	2022
Weighted average remaining lease term (years):
Operating leases	5.46	5.67
Finance leases	—	0.75
Weighted average discount rate (%):
Operating leases	4.21	3.49
Finance leases	—	1.49

The following table provides other information related to leases for the years ended December 31, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	24,088	$	23,674
Leased assets obtained in exchange for new operating lease liabilities(a)	28,675		22,725

(a) Includes operating lease assets acquired as part of the Amdaris and SADA acquisitions of $2,881,000 and $2,032,000, respectively.

Leases


		December 31,
Leases	Classification	2023		2022
Assets
Operating lease assets	Other assets	$	84,956	$	76,160
Finance lease assets	Property and equipment(a)	—		59
Total lease assets		$	84,956	$	76,219
Liabilities
Current
Operating lease liabilities	Accrued expenses and other current liabilities	$	20,582	$	19,213
Finance lease liabilities	Current portion of long-term debt	—		28
Non-current
Operating lease liabilities	Other liabilities	71,033		63,324
Total lease liabilities		$	91,615	$	82,565


(a)			Recorded net of accumulated amortization of $48,000 as of December 31, 2022.


		December 31,
Lease cost	Classification	2023		2022
Operating lease cost (a)	Selling and administrative expenses	$	24,054	$	23,986
Finance lease cost
Amortization of leased assets	Selling and administrative expenses	16		29
Interest on lease liabilities	Interest expense, net	—		2
Total lease cost		$	24,070	$	24,017


(a)			Excludes short-term and variable lease costs, which are immaterial.

Future minimum lease payments under non-cancelable leases as of December 31, 2023 are as follows (in thousands):


	Operating leases
2024	$	23,811
2025	20,084
2026	17,113
2027	13,818
2028	10,161
After 2028	17,386
Total lease payments	102,373
Less: Interest	(10,758)
Present value of lease liabilities	$	91,615

The following table provides information about the remaining lease terms and discount rates applied as of December 31, 2023 and 2022:


	December 31,
	2023	2022
Weighted average remaining lease term (years):
Operating leases	5.46	5.67
Finance leases	—	0.75
Weighted average discount rate (%):
Operating leases	4.21	3.49
Finance leases	—	1.49

The following table provides other information related to leases for the years ended December 31, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	24,088	$	23,674
Leased assets obtained in exchange for new operating lease liabilities(a)	28,675		22,725

(a) Includes operating lease assets acquired as part of the Amdaris and SADA acquisitions of $2,881,000 and $2,032,000, respectively.