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 sheets 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, 2026			December 31, 2025
2026	$	24,687		$	54,278
2027		41,159			44,246
2028		31,821			33,245
2029		19,590			18,855
2030		15,281			14,522
Thereafter		99,908			97,566
Total lease payments		232,446			262,712
Less: imputed interest		(42,767	)		(47,092	)
Operating lease liabilities	$	189,679		$	215,620

The following table summarizes lease costs (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Operating lease cost	$	12,673		$	11,958		$	25,914		$	23,943
Variable lease cost		512			(309	)		(139	)		(324	)
Short-term lease cost		10,393			11,013			18,946			21,688
Sublease income		(1,244	)		(1,011	)		(2,149	)		(1,871	)
	$	22,334		$	21,651		$	42,572		$	43,436

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


	June 30, 2026			December 31, 2025
Weighted average discount rate		4.7	%		4.7	%
Weighted average remaining lease term	9 years			8 years