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Lease Obligations
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Lease Obligations Lease Obligations
From time to time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one to ten years, some of which may include options to extend the leases for up to six years, and some of which may include options to terminate the leases within one year. Currently, all the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At March 31, 2024, the Company had several leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is ongoing and the purchase option price is attractive. Leases are accounted for as operating or finance leases, depending on the terms of the lease.
The following is a summary of the lease-related assets and liabilities recorded:
March 31,
2024		December 31,
2023
(in thousands)Classification on the Consolidated Balance Sheet
Assets
Operating lease right-of-use assetsOperating lease right-of-use assets$38,515 $35,012 
Finance lease right-of-use assetsProperty and equipment, net of accumulated depreciation2,174 2,363 
Total right-of-use lease assets$40,689 $37,375 
Liabilities
Current
Operating lease obligationsCurrent portion of operating lease obligations$9,918 $9,237 
Finance lease obligationsCurrent portion of finance lease obligations1,845 2,039 
Total current obligations11,763 11,276 
Non-current
Operating lease obligationsOperating lease obligations, net of current maturities28,592 25,775 
Finance lease obligationsFinance lease obligations, net of current maturities184 314 
Total non-current obligations28,776 26,089 
Total lease obligations$40,539 $37,365 
The following is a summary of the lease terms and discount rates:
March 31,
2024		December 31,
2023
Weighted-average remaining lease term - finance leases0.6 years0.9 years
Weighted-average remaining lease term - operating leases4.0 years4.0 years
Weighted-average discount rate - finance leases3.2 %3.1 %
Weighted-average discount rate - operating leases4.0 %4.0 %
The following is a summary of certain information related to the lease costs for finance and operating leases:
(in thousands)Three months ended
March 31,
20242023
Lease cost:
Finance lease cost:
Amortization of right-of-use assets$1,892 $1,206 
Interest on lease liabilities16 24 
Operating lease cost3,713 3,590 
Variable lease costs93 89 
Total lease cost$5,714 $4,909 
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
Three months ended March 31,
(in thousands)20242023
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$3,650 $3,616 
Right-of-use asset obtained in exchange for new operating lease obligations$4,864 $1,616 
The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less imputed interest, as of March 31, 2024 were as follows:
(in thousands)Finance
Lease Obligations		Operating Lease
Obligations		Total
Lease
Obligations
Remainder of 2024
$1,743 $10,306 $12,049 
2025313 12,194 12,507 
2026— 9,960 9,960 
2027— 5,342 5,342 
2028— 4,087 4,087 
2029— 2,354 2,354 
Thereafter— 892 892 
Total minimum lease payments2,056 45,135 47,191 
Financing component(27)(6,625)(6,652)
Net present value of minimum lease payments2,029 38,510 40,539 
Less: current portion of finance and operating lease obligations(1,845)(9,918)(11,763)
Long-term finance and operating lease obligations$184 $28,592 $28,776 
The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value.
Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at or below market rental rates. Lease expense associated with these leases was $0.6 million for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, the minimum lease payments required under these leases totaled $12.1 million, which are due over the next 5.4 years.
Lease Obligations Lease Obligations
From time to time, the Company enters into non-cancelable leases for some of our facility, vehicle and equipment needs. These leases allow the Company to conserve cash by paying a monthly lease rental fee for the use of facilities, vehicles and equipment rather than purchasing them. The Company’s leases have remaining terms ranging from one to ten years, some of which may include options to extend the leases for up to six years, and some of which may include options to terminate the leases within one year. Currently, all the Company’s leases contain fixed payment terms. The Company may decide to cancel or terminate a lease before the end of its term, in which case we are typically liable to the lessor for the remaining lease payments under the term of the lease. Additionally, all of the Company's month-to-month leases are cancelable, by the Company or the lessor, at any time and are not included in our right-of-use asset or liability. At March 31, 2024, the Company had several leases with residual value guarantees. Typically, the Company has purchase options on the equipment underlying its long-term leases and many of its short-term rental arrangements. The Company may exercise some of these purchase options when the need for equipment is ongoing and the purchase option price is attractive. Leases are accounted for as operating or finance leases, depending on the terms of the lease.
The following is a summary of the lease-related assets and liabilities recorded:
March 31,
2024		December 31,
2023
(in thousands)Classification on the Consolidated Balance Sheet
Assets
Operating lease right-of-use assetsOperating lease right-of-use assets$38,515 $35,012 
Finance lease right-of-use assetsProperty and equipment, net of accumulated depreciation2,174 2,363 
Total right-of-use lease assets$40,689 $37,375 
Liabilities
Current
Operating lease obligationsCurrent portion of operating lease obligations$9,918 $9,237 
Finance lease obligationsCurrent portion of finance lease obligations1,845 2,039 
Total current obligations11,763 11,276 
Non-current
Operating lease obligationsOperating lease obligations, net of current maturities28,592 25,775 
Finance lease obligationsFinance lease obligations, net of current maturities184 314 
Total non-current obligations28,776 26,089 
Total lease obligations$40,539 $37,365 
The following is a summary of the lease terms and discount rates:
March 31,
2024		December 31,
2023
Weighted-average remaining lease term - finance leases0.6 years0.9 years
Weighted-average remaining lease term - operating leases4.0 years4.0 years
Weighted-average discount rate - finance leases3.2 %3.1 %
Weighted-average discount rate - operating leases4.0 %4.0 %
The following is a summary of certain information related to the lease costs for finance and operating leases:
(in thousands)Three months ended
March 31,
20242023
Lease cost:
Finance lease cost:
Amortization of right-of-use assets$1,892 $1,206 
Interest on lease liabilities16 24 
Operating lease cost3,713 3,590 
Variable lease costs93 89 
Total lease cost$5,714 $4,909 
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
Three months ended March 31,
(in thousands)20242023
Other information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$3,650 $3,616 
Right-of-use asset obtained in exchange for new operating lease obligations$4,864 $1,616 
The future undiscounted minimum lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s consolidated balance sheets, under financial leases, less interest, and under operating leases, less imputed interest, as of March 31, 2024 were as follows:
(in thousands)Finance
Lease Obligations		Operating Lease
Obligations		Total
Lease
Obligations
Remainder of 2024
$1,743 $10,306 $12,049 
2025313 12,194 12,507 
2026— 9,960 9,960 
2027— 5,342 5,342 
2028— 4,087 4,087 
2029— 2,354 2,354 
Thereafter— 892 892 
Total minimum lease payments2,056 45,135 47,191 
Financing component(27)(6,625)(6,652)
Net present value of minimum lease payments2,029 38,510 40,539 
Less: current portion of finance and operating lease obligations(1,845)(9,918)(11,763)
Long-term finance and operating lease obligations$184 $28,592 $28,776 
The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value.
Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at or below market rental rates. Lease expense associated with these leases was $0.6 million for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, the minimum lease payments required under these leases totaled $12.1 million, which are due over the next 5.4 years.