Company: EME
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000105634-25-000015
Chunk: 145

Company: EMCOR Group, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 145
---
, such rate is utilized. However, based on information available at lease commencement for the majority of our leases, the rate implicit in the lease is not known. In these instances, we utilize an incremental borrowing rate, which represents the rate of interest that we would pay to borrow on a collateralized basis, over a similar term, an amount equal to the lease payments.Our lease arrangements generally do not contain significant restrictions or covenants; however, certain of our vehicle and equipment leases include residual value guarantees, whereby we provide a guarantee to the lessor that the value of the underlying asset will be at least a specified amount at the end of the lease. Amounts probable of being owed under these guarantees are included within the measurement of the right-of-use asset and lease liability. Lease Position The following table presents our lease-related assets and liabilities as of December 31, 2024 and 2023 (in thousands):Classification on the Consolidated Balance SheetDecember 31,2024December 31,2023AssetsOperating lease assetsOperating lease right-of-use assets$316,128 $310,498 Finance lease assetsProperty, plant, and equipment, net6,009 4,932 Total lease assets$322,137 $315,430 LiabilitiesCurrentOperatingOperating lease liabilities, current$81,247 $75,236 FinanceOther accrued expenses and liabilities2,246 2,465 NoncurrentOperatingOperating lease liabilities, long-term261,575 259,430 FinanceOther long-term obligations3,849 2,838 Total lease liabilities$348,917 $339,969 

72

Table of ContentsEMCOR Group, Inc. and SubsidiariesNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 16 - LEASES (Continued)Lease CostsThe following table presents information related to our lease expense for the years ended December 31, 2024, 2023, and 2022 (in thousands):202420232022Finance lease expense:Amortization expense$2,604 $2,816 $3,550 Interest expense254 175 178 Operating lease expense103,261 93,158 77,143 Short-term lease expense (1)290,267 224,047 185,061 Variable lease expense7,137 9,482 6,782 Total lease expense$403,523 $329,678 $272,714 _________________(