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LEASES | 6 Months Ended
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Jun. 30, 2024
Leases [Abstract] |
LEASES | LEASES We determine if our contractual agreements contain a lease at inception. A lease is identified when a contract allows us the right to control an identified asset for a period of time in exchange for consideration. Our lease agreements consist primarily of operating leases for office space, warehouses, office equipment, and trailers. We do not have material financing leases. Frequently, we enter into contractual relationships with a wide variety of transportation companies for freight capacity and utilize those relationships to efficiently and cost-effectively arrange the transport of our customers’ freight. These contracts typically have a term of twelve months or less and do not allow us to direct the use or obtain substantially all of the economic benefits of a specifically identified asset. Accordingly, these agreements are not considered leases. Our operating leases are included on the consolidated balance sheets as right-of-use lease assets and lease liabilities. A right-of-use lease asset represents our right to use an underlying asset over the term of a lease, while a lease liability represents our obligation to make lease payments arising from the lease. Current and noncurrent lease liabilities are recognized on the commencement date at the present value of lease payments, including non-lease components, which consist primarily of common area maintenance and parking charges. Right-of-use lease assets are also recognized on commencement date as the total lease liability plus prepaid rents. As our leases typically do not provide an implicit rate, we use our fully collateralized incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is influenced by market interest rates, our credit rating, and lease term and as such, may differ for individual leases. Our lease agreements typically do not contain variable lease payments, residual value guarantees, purchase options, or restrictive covenants. Many of our leases include the option to renew for a period of months to several years. The term of our leases may include the option to renew when it is reasonably certain we will exercise that option, although these occurrences are seldom. We have lease agreements with lease components (e.g., payments for rent) and non-lease components (e.g., payments for common area maintenance and parking), which are all accounted for as a single lease component. We do not have material lease agreements that have not yet commenced that are expected to create significant rights or obligations as of June 30, 2024. Information regarding lease expense, remaining lease term, discount rate, and other select lease information are presented below (dollars in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
Lease Costs | 2024 |  | 2023 |  | 2024 |  | 2023
Operating lease expense(1) | $ | 26,793 |  |  | $ | 24,773 |  |  | $ | 52,430 |  |  | $ | 49,426 |
Short-term lease expense | 1,521 |  |  | 1,486 |  |  | 2,683 |  |  | 2,900 |
Total lease expense | $ | 28,314 |  |  | $ | 26,259 |  |  | $ | 55,113 |  |  | $ | 52,326 |
___________________________ (1) Operating lease expense for the three and six months ended June 30, 2024, includes $3.9 million of restructuring charges related to rationalization of our facilities footprint including the early termination or abandonment of select office buildings under operating leases. Refer to Note 13, Restructuring, for further discussion related to our 2024 Restructuring Program.
| Six Months Ended June 30,
Other Lease Information | 2024 |  | 2023
Operating cash flows from operating leases | $ | 48,649 |  |  | $ | 47,360 |
Right-of-use lease assets obtained in exchange for new lease liabilities | 46,526 |  |  | 14,204 |
Lease Term and Discount Rate | As of June 30, 2024 |  | As of December 31, 2023
Weighted average remaining lease term (in years) | 5.8 |  | 5.9
Weighted average discount rate | 4.1 | % |  | 3.9 | %
The maturities of lease liabilities as of June 30, 2024, were as follows (in thousands):
Maturity of Lease Liabilities |  | Operating Leases
Remaining 2024 |  | $ | 40,854 |
2025 |  | 90,514 |
2026 |  | 77,195 |
2027 |  | 61,100 |
2028 |  | 45,774 |
Thereafter |  | 107,249 |
Total lease payments |  | 422,686 |
Less: Interest |  | (48,999) |
Present value of lease liabilities |  | $ | 373,687 |

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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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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