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Lease Obligations | 3 Months Ended
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Mar. 31, 2023
Leases [Abstract] |
Lease Obligations | Lease Obligations In the ordinary course of business, the Company enters into agreements that provide financing for machinery and equipment and for other of its facility, vehicle and equipment needs, including related party leases. As of March 31, 2023, the Company’s leases have remaining lease terms of up to sixteen years. Lease agreements may contain renewal clauses, which, if elected, generally extend the term of the lease for one to five years for both equipment and facility leases. Certain lease agreements may also contain options to purchase the leased property and/or options to terminate the lease. In addition, lease agreements may include periodic adjustments to payment amounts for inflation or other variables, or may require payments for taxes, insurance, maintenance or other expenses, which are generally referred to as non-lease components. The Company’s lease agreements do not contain significant residual value guarantees or material restrictive covenants. Finance Leases The gross amount of assets held under finance leases as of March 31, 2023 and December 31, 2022 totaled $715.7 million and $720.1 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $512.4 million and $535.3 million as of March 31, 2023 and December 31, 2022, respectively. Depreciation expense associated with finance leases totaled $28.0 million and $20.3 million for the three month periods ended March 31, 2023 and 2022, respectively. Operating Leases Operating lease additions for the three month periods ended March 31, 2023 and 2022 totaled $26.3 million and $26.9 million, respectively. For the three month periods ended March 31, 2023 and 2022, rent expense for leases that have terms in excess of one year totaled approximately $35.2 million and $34.0 million, respectively, of which $4.0 million and $3.0 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $111.1 million and $74.3 million for the three month periods ended March 31, 2023 and 2022, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, which payments are included within operating activities in the consolidated statements of cash flows. Additional Lease Information Future minimum lease commitments as of March 31, 2023 were as follows (in millions):
| Finance Leases |  | Operating Leases
2023, remaining nine months | $ | 125.3 |  |  | $ | 78.4 |
2024 | 127.5 |  |  | 85.3 |
2025 | 90.9 |  |  | 59.4 |
2026 | 33.9 |  |  | 40.7 |
2027 | 4.0 |  |  | 18.7 |
Thereafter | 0.5 |  |  | 32.1 |
Total minimum lease payments | $ | 382.1 |  |  | $ | 314.6 |
Less amounts representing interest | (17.2) |  |  | (27.7) |
Total lease obligations, net of interest | $ | 364.9 |  |  | $ | 286.9 |
Less current portion | 148.8 |  |  | 96.8 |
Long-term portion of lease obligations, net of interest | $ | 216.1 |  |  | $ | 190.1 |
As of March 31, 2023, finance leases had a weighted average remaining lease term of 2.7 years and a weighted average discount rate of 4.1%, and non-cancelable operating leases had a weighted average remaining lease term of 4.4 years and a weighted average discount rate of 3.8%.
Lease Obligations | Lease Obligations In the ordinary course of business, the Company enters into agreements that provide financing for machinery and equipment and for other of its facility, vehicle and equipment needs, including related party leases. As of March 31, 2023, the Company’s leases have remaining lease terms of up to sixteen years. Lease agreements may contain renewal clauses, which, if elected, generally extend the term of the lease for one to five years for both equipment and facility leases. Certain lease agreements may also contain options to purchase the leased property and/or options to terminate the lease. In addition, lease agreements may include periodic adjustments to payment amounts for inflation or other variables, or may require payments for taxes, insurance, maintenance or other expenses, which are generally referred to as non-lease components. The Company’s lease agreements do not contain significant residual value guarantees or material restrictive covenants. Finance Leases The gross amount of assets held under finance leases as of March 31, 2023 and December 31, 2022 totaled $715.7 million and $720.1 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $512.4 million and $535.3 million as of March 31, 2023 and December 31, 2022, respectively. Depreciation expense associated with finance leases totaled $28.0 million and $20.3 million for the three month periods ended March 31, 2023 and 2022, respectively. Operating Leases Operating lease additions for the three month periods ended March 31, 2023 and 2022 totaled $26.3 million and $26.9 million, respectively. For the three month periods ended March 31, 2023 and 2022, rent expense for leases that have terms in excess of one year totaled approximately $35.2 million and $34.0 million, respectively, of which $4.0 million and $3.0 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms of one year or less totaling approximately $111.1 million and $74.3 million for the three month periods ended March 31, 2023 and 2022, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, which payments are included within operating activities in the consolidated statements of cash flows. Additional Lease Information Future minimum lease commitments as of March 31, 2023 were as follows (in millions):
| Finance Leases |  | Operating Leases
2023, remaining nine months | $ | 125.3 |  |  | $ | 78.4 |
2024 | 127.5 |  |  | 85.3 |
2025 | 90.9 |  |  | 59.4 |
2026 | 33.9 |  |  | 40.7 |
2027 | 4.0 |  |  | 18.7 |
Thereafter | 0.5 |  |  | 32.1 |
Total minimum lease payments | $ | 382.1 |  |  | $ | 314.6 |
Less amounts representing interest | (17.2) |  |  | (27.7) |
Total lease obligations, net of interest | $ | 364.9 |  |  | $ | 286.9 |
Less current portion | 148.8 |  |  | 96.8 |
Long-term portion of lease obligations, net of interest | $ | 216.1 |  |  | $ | 190.1 |
As of March 31, 2023, finance leases had a weighted average remaining lease term of 2.7 years and a weighted average discount rate of 4.1%, and non-cancelable operating leases had a weighted average remaining lease term of 4.4 years and a weighted average discount rate of 3.8%.

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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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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