| Lessee, Finance Leases |
The Company leases its facilities under operating leases that provide for the payment of real estate taxes and other operating costs in addition to normal rent. The Company’s real estate leases typically have terms of 1 to 15 years. Certain leases include extension options exercisable from one to five years before the end of the cancellable lease term. The Company typically leases equipment and vehicles with standard lease terms of 3 to 5 years. Expenses recognized relating to short-term leases and leases of low value during the years ended December 31, 2024 and 2023 were immaterial. The following summarizes the weighted average remaining lease term and discount rate as of December 31, 2024 and 2023:
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Weighted Average Remaining Lease Term |
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Operating leases |
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12.5 years |
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14.1 years |
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Finance leases |
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9.1 years |
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9.1 years |
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Weighted Average Discount Rate |
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Operating leases |
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7.46 |
% |
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7.01 |
% |
Finance leases |
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7.11 |
% |
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7.49 |
% | The maturities of lease liabilities as of December 31, 2024 were as follows:
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Year Ending December 31: |
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2025 |
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$ |
17,102 |
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$ |
7,711 |
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2026 |
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19,225 |
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6,501 |
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2027 |
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18,356 |
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6,666 |
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2028 |
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16,918 |
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5,823 |
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2029 |
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14,864 |
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5,414 |
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Thereafter |
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125,470 |
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26,992 |
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Total lease payments |
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211,935 |
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59,107 |
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Less: interest |
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(78,334 |
) |
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(16,260 |
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Present value of lease liabilities |
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$ |
133,601 |
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$ |
42,847 |
| The following summarizes the line items in the income statements which include the components of lease expense for the years ended December 31, 2024 and 2023:
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Operating lease expense |
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$ |
27,729 |
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$ |
28,860 |
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Included in |
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Cost of sales |
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15,727 |
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16,794 |
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Selling, general and administrative expenses |
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12,002 |
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12,066 |
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Finance lease costs: |
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12,042 |
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14,015 |
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Amortization of lease assets included in cost of sales |
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5,842 |
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7,146 |
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Amortization of lease assets included in selling, general and administrative costs |
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2,730 |
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2,691 |
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Interest on lease liabilities included in interest (expense) income, net |
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3,470 |
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4,178 |
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Total lease costs |
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$ |
39,771 |
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$ |
42,875 |
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| The following summarizes cash flow information related to leases for the year ended December 31, 2024 and 2023:
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Cash paid for amounts included in the measurement of lease liabilities: |
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Operating cash flows from operating leases |
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$ |
25,595 |
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$ |
26,547 |
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Operating cash flows from finance leases |
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3,464 |
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4,177 |
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Financing cash flows from finance leases |
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6,904 |
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6,788 |
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Lease assets obtained in exchange for lease obligations: |
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Operating leases |
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9,256 |
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5,114 |
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Finance leases |
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7 |
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991 |
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Lease assets obtained in business acquisitions |
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Operating leases |
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$ |
— |
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$ |
— |
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