Leases

6 Months Ended

Jun. 30, 2023

(6) Leases

The Company currently leases various facilities and equipment under cancelable and noncancelable operating leases. The accounting for the Company’s leases may require judgments, which include determining whether a contract contains a lease, allocating the consideration between lease and non-lease components, and determining the incremental borrowing rates. Leases with an initial noncancelable term of 12 months or less are not recorded on the balance sheet and related lease expense is recognized on a straight-line basis over the lease term. The Company has also elected to combine lease and non-lease components on all classes of leased assets, except for leased towing vessels, for which the Company estimates approximately 70% of the costs relate to service costs and other non-lease components. Variable lease costs relate primarily to real estate executory costs (i.e. taxes, insurance and maintenance).

Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year were as follows (in thousands):


	June 30, 2023			December 31, 2022
2023	$	19,996		$	41,227
2024		33,581			32,716
2025		24,604			24,807
2026		22,934			21,467
2027		20,827			19,253
Thereafter		96,220			95,582
Total lease payments		218,162			235,052
Less: imputed interest		(42,558	)		(56,468	)
Operating lease liabilities	$	175,604		$	178,584

The following table summarizes lease costs (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Operating lease cost	$	10,653		$	10,604		$	21,230		$	21,454
Variable lease cost		690			446			1,448			865
Short-term lease cost		9,211			5,248			15,430			10,729
Sublease income		(798	)		(68	)		(1,641	)		(137	)
	$	19,756		$	16,230		$	36,467		$	32,911

The following table summarizes other supplemental information about the Company’s operating leases:


	June 30, 2023			December 31, 2022
Weighted average discount rate		4.3	%		4.1	%
Weighted average remaining lease term	9 years			9 years