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Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lessee, Operating Leases

LEASES

We lease real estate, vehicles and equipment under various arrangements which are classified as either operating or finance leases. A lease exists when a contract or part of a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining whether a lease exists, we consider whether a contract provides us with both: (a) the right to obtain substantially all of the economic benefits from the use of the identified asset and (b) the right to direct the use of the identified asset.

Many of our leases include base rental periods coupled with options to renew or terminate the lease, generally at our discretion. Certain leases additionally include options to purchase the leased asset. In evaluating the lease term, we consider whether we are reasonably certain to exercise such options. To the extent a significant economic incentive exists to exercise an option, that option is included within the lease term. However, based on the nature of our lease arrangements, options generally do not provide us with a significant economic incentive and are therefore excluded from the lease term for the majority of our arrangements.

Our leases typically include a combination of fixed and variable payments. Fixed payments are generally included when measuring the right-of-use asset and lease liability. Variable payments, which primarily represent payments based on usage of the underlying asset, are generally excluded from such measurement and expensed as incurred. In addition, certain of our lease arrangements may contain a lease coupled with an arrangement to provide other services, such as maintenance, or may require us to make other payments on behalf of the lessor related to the leased asset, such as payments for taxes or insurance. We account for these non-lease components together with the associated lease component for each of our asset classes.

The measurement of right-of-use assets and lease liabilities requires us to estimate appropriate discount rates. To the extent the rate implicit in the lease is readily determinable, such rate is utilized. However, based on information available at lease commencement for the majority of our leases, the rate implicit in the lease is not known. In these instances, we utilize an incremental borrowing rate, which represents the rate of interest that we would pay to borrow on a collateralized basis, over a similar term, an amount equal to the lease payments.

Our lease arrangements generally do not contain significant restrictions or covenants; however, certain of our vehicle and equipment leases include residual value guarantees, whereby we provide a guarantee to the lessor that the value of the underlying asset will be at least a specified amount at the end of the lease. Amounts probable of being owed under these guarantees are included within the measurement of the right-of-use asset and lease liability.

NOTE 17 - LEASES - (Continued)

Lease Position

The following table presents the lease-related assets and liabilities as of December 31, 2020 and 2019 (in thousands):

						Classification on the Consolidated Balance Sheet									December 31, 2020						December 31, 2019
Assets
Operating lease assets						Operating lease right-of-use assets									$	242,155					$	245,471
Finance lease assets						Property, plant and equipment, net									9,638						9,609
Total lease assets															$	251,793					$	255,080
Liabilities
Current
Operating						Operating lease liabilities, current									$	53,632					$	53,144
Finance						Current maturities of long-term debt and finance lease liabilities									3,995						4,088
Noncurrent
Operating						Operating lease liabilities, long-term									205,362						204,950
Finance						Long-term debt and finance lease liabilities									5,971						5,591
Total lease liabilities															$	268,960					$	267,773

Lease Costs

The following table presents information related to lease expense for the years ended December 31, 2020 and 2019 (in thousands):

						2020						2019
Finance lease expense:
Amortization expense						$	4,562					$	4,575
Interest expense						355						427
Operating lease expense						69,208						66,650
Short-term lease expense						139,706						149,528
Variable lease expense						5,441						4,924
Total lease expense						$	219,272					$	226,104

Rent expense for operating leases and other rental items, including short-term equipment rentals, for the year ended December 31, 2018 was approximately $191.8 million. For each of the years ended December 31, 2020, 2019, and 2018, sublease rental income was approximately $0.5 million.

Lease Term and Discount Rate

The following table presents certain information related to lease terms and discount rates for leases as of December 31, 2020 and 2019:

						December 31, 2020						December 31, 2019
Weighted-average remaining lease term:
Operating leases						6.6 years						6.7 years
Finance leases						3.1 years						2.9 years
Weighted-average discount rate:
Operating leases						3.59		%				4.04		%
Finance leases						3.24		%				4.16		%

NOTE 17 - LEASES - (Continued)

Other Information

The following table presents supplemental cash flow information related to leases for the years ended December 31, 2020 and 2019 (in thousands):

						2020						2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases						$	65,016					$	65,757
Operating cash flows used for finance leases						$	355					$	427
Financing cash flows used for finance leases						$	4,470					$	4,571
Right-of-use assets obtained in exchange for new operating lease liabilities						$	55,895					$	84,089
Right-of-use assets obtained in exchange for new finance lease liabilities						$	4,558					$	5,311

For the year ended December 31, 2018, assets acquired under capital leases amounted to approximately $1.1 million.

Maturity of Lease Liabilities

The following table reconciles future minimum lease payments on an undiscounted cash flow basis to the lease liabilities reported in the Consolidated Balance Sheet as of December 31, 2020 (in thousands):

			Operating Leases						Finance Leases
2021			$	61,743					$	4,234
2022			50,452						2,902
2023			43,240						1,652
2024			33,185						1,289
2025			25,648						265
Thereafter			76,904						69
Total minimum lease payments			291,172						10,411
Less: Amount of lease payments representing interest			(32,178)						(445)
Present value of future minimum lease payments			$	258,994					$	9,966
Current portion of lease liabilities			$	53,632					$	3,995
Noncurrent portion of lease liabilities			205,362						5,971
Present value of future minimum lease payments			$	258,994					$	9,966

Leasee, Finance Leases

LEASES

We lease real estate, vehicles and equipment under various arrangements which are classified as either operating or finance leases. A lease exists when a contract or part of a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining whether a lease exists, we consider whether a contract provides us with both: (a) the right to obtain substantially all of the economic benefits from the use of the identified asset and (b) the right to direct the use of the identified asset.

Many of our leases include base rental periods coupled with options to renew or terminate the lease, generally at our discretion. Certain leases additionally include options to purchase the leased asset. In evaluating the lease term, we consider whether we are reasonably certain to exercise such options. To the extent a significant economic incentive exists to exercise an option, that option is included within the lease term. However, based on the nature of our lease arrangements, options generally do not provide us with a significant economic incentive and are therefore excluded from the lease term for the majority of our arrangements.

Our leases typically include a combination of fixed and variable payments. Fixed payments are generally included when measuring the right-of-use asset and lease liability. Variable payments, which primarily represent payments based on usage of the underlying asset, are generally excluded from such measurement and expensed as incurred. In addition, certain of our lease arrangements may contain a lease coupled with an arrangement to provide other services, such as maintenance, or may require us to make other payments on behalf of the lessor related to the leased asset, such as payments for taxes or insurance. We account for these non-lease components together with the associated lease component for each of our asset classes.

The measurement of right-of-use assets and lease liabilities requires us to estimate appropriate discount rates. To the extent the rate implicit in the lease is readily determinable, such rate is utilized. However, based on information available at lease commencement for the majority of our leases, the rate implicit in the lease is not known. In these instances, we utilize an incremental borrowing rate, which represents the rate of interest that we would pay to borrow on a collateralized basis, over a similar term, an amount equal to the lease payments.

Our lease arrangements generally do not contain significant restrictions or covenants; however, certain of our vehicle and equipment leases include residual value guarantees, whereby we provide a guarantee to the lessor that the value of the underlying asset will be at least a specified amount at the end of the lease. Amounts probable of being owed under these guarantees are included within the measurement of the right-of-use asset and lease liability.

NOTE 17 - LEASES - (Continued)

Lease Position

The following table presents the lease-related assets and liabilities as of December 31, 2020 and 2019 (in thousands):

						Classification on the Consolidated Balance Sheet									December 31, 2020						December 31, 2019
Assets
Operating lease assets						Operating lease right-of-use assets									$	242,155					$	245,471
Finance lease assets						Property, plant and equipment, net									9,638						9,609
Total lease assets															$	251,793					$	255,080
Liabilities
Current
Operating						Operating lease liabilities, current									$	53,632					$	53,144
Finance						Current maturities of long-term debt and finance lease liabilities									3,995						4,088
Noncurrent
Operating						Operating lease liabilities, long-term									205,362						204,950
Finance						Long-term debt and finance lease liabilities									5,971						5,591
Total lease liabilities															$	268,960					$	267,773

Lease Costs

The following table presents information related to lease expense for the years ended December 31, 2020 and 2019 (in thousands):

						2020						2019
Finance lease expense:
Amortization expense						$	4,562					$	4,575
Interest expense						355						427
Operating lease expense						69,208						66,650
Short-term lease expense						139,706						149,528
Variable lease expense						5,441						4,924
Total lease expense						$	219,272					$	226,104

Rent expense for operating leases and other rental items, including short-term equipment rentals, for the year ended December 31, 2018 was approximately $191.8 million. For each of the years ended December 31, 2020, 2019, and 2018, sublease rental income was approximately $0.5 million.

Lease Term and Discount Rate

The following table presents certain information related to lease terms and discount rates for leases as of December 31, 2020 and 2019:

						December 31, 2020						December 31, 2019
Weighted-average remaining lease term:
Operating leases						6.6 years						6.7 years
Finance leases						3.1 years						2.9 years
Weighted-average discount rate:
Operating leases						3.59		%				4.04		%
Finance leases						3.24		%				4.16		%

NOTE 17 - LEASES - (Continued)

Other Information

The following table presents supplemental cash flow information related to leases for the years ended December 31, 2020 and 2019 (in thousands):

						2020						2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases						$	65,016					$	65,757
Operating cash flows used for finance leases						$	355					$	427
Financing cash flows used for finance leases						$	4,470					$	4,571
Right-of-use assets obtained in exchange for new operating lease liabilities						$	55,895					$	84,089
Right-of-use assets obtained in exchange for new finance lease liabilities						$	4,558					$	5,311

For the year ended December 31, 2018, assets acquired under capital leases amounted to approximately $1.1 million.

Maturity of Lease Liabilities

The following table reconciles future minimum lease payments on an undiscounted cash flow basis to the lease liabilities reported in the Consolidated Balance Sheet as of December 31, 2020 (in thousands):

			Operating Leases						Finance Leases
2021			$	61,743					$	4,234
2022			50,452						2,902
2023			43,240						1,652
2024			33,185						1,289
2025			25,648						265
Thereafter			76,904						69
Total minimum lease payments			291,172						10,411
Less: Amount of lease payments representing interest			(32,178)						(445)
Present value of future minimum lease payments			$	258,994					$	9,966
Current portion of lease liabilities			$	53,632					$	3,995
Noncurrent portion of lease liabilities			205,362						5,971
Present value of future minimum lease payments			$	258,994					$	9,966

X

- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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