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Leases
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases
Note 17: Leases

The Company leases certain equipment, vehicles, office space, and manufacturing and distribution facilities, and recognizes the associated lease expense on a straight-line basis over the lease term for its operating leases. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one year to five years, or more. The depreciable lives of assets and leasehold improvements are limited by the expected lease term. Certain lease agreements held by the Company include rental payments adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

In 2007, the Company completed construction of a manufacturing facility in Belgium. Costs related to the facility totaled $13.2 million. The lease was accounted for as a finance lease and had an initial term of 15 years and an initial interest rate of 7.1 percent. The Company entered into a new agreement in 2022 to extend the building lease an additional 3 years and eight months for a maturity of June 9, 2026 which also includes a purchase option exercisable in May of each year of the renewal period.

In 2020, the Company realized a gain of $29.2 million from the sale-leaseback of the Company headquarters in Orlando, Florida along with the sale of certain surrounding land.

Components of lease expense were as follows:

Year Ended
(In millions of U.S. Dollars)December 31,
2022
December 25,
2021
December 26,
2020
Operating lease cost (a) (b)
$34.9 $39.2 $40.0 
Amortization of right-of-use assets (a)
$0.6 $0.6 $0.8 
Interest on lease liabilities (c)
— 0.1 0.2 
Finance lease cost$0.6 $0.7 $1.0 

(a)Included in Selling, general and administrative expense and Cost of products sold in the Consolidated Statements of (Loss) Income.
(b)Includes $2.9 million, $3.3 million and $2.8 million related to short-term rent expense for leases with a term of twelve months or less in 2022, 2021 and 2020, respectively, and $2.5 million, $1.7 million and $0.9 million related to variable rent expense in 2022, 2021 and 2020, respectively.
(c)Included in Interest expense in the Consolidated Statements of (Loss) Income.

Supplemental cash flow information related to leases is as follows:

Year Ended
(In millions of U.S. Dollars)December 31,
2022
December 25,
2021
December 26,
2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$(35.3)$(38.6)$(37.0)
Financing cash flows from finance leases$(1.7)$(1.4)$(0.6)
Supplemental information related to leases is as follows:

As of
(In millions of U.S. Dollars, except lease term and discount rate)December 31,
2022
December 25,
2021
Operating leasesBalance Sheet Location
Operating lease right-of-use assetsOperating lease assets$69.1 $74.7 
Current portion of operating lease liabilitiesAccrued liabilities$18.6 $20.3 
Long-term operating lease liabilitiesOperating lease liabilities53.7 56.8 
Total operating lease liabilities$72.3 $77.1 
Finance leases
Finance lease right-of-use assets, at costProperty, plant and equipment, net$17.1 $18.2 
Finance lease right-of-use assets, accumulated amortizationProperty, plant and equipment, net(12.6)(12.8)
Finance lease right-of-use asset, netProperty, plant and equipment, net$4.5 $5.4 
Current portion of finance lease liabilitiesCurrent debt and finance lease obligations$0.5 $1.4 
Long-term finance lease liabilities
Long-term debt and other lease obligations— 0.4 
Total finance lease liabilities$0.5 $1.8 
Weighted-average remaining lease term
Operating leases5.5 years5.7 years
Finance leases3.4 years4.4 years
Weighted-average discount rate (a)
Operating leases
8.5 %5.3 %
Finance leases7.1 %7.1 %

(a)Calculated using the Company’s incremental borrowing rate.

Maturities of lease liabilities as of December 31, 2022 were as follows:
As of
December 31,
2022
(In millions of U.S. Dollars)Operating Leases (a)Finance Leases
2023$24.3 0.5 
202417.7 — 
202511.8 — 
20267.9 — 
20277.0 — 
Thereafter22.3 — 
Total lease payments91.0 0.5 
Less imputed interest(18.7)— 
Total$72.3 $0.5 

(a)Annual long-term lease liabilities for continuing operations were calculated by deducting long-term liabilities for discontinued operations averaged over the years 2023 and beyond.

As of December 31, 2022, the Company did not have any operating leases not yet commenced but expected to commence in 2023.
Leases
Note 17: Leases

The Company leases certain equipment, vehicles, office space, and manufacturing and distribution facilities, and recognizes the associated lease expense on a straight-line basis over the lease term for its operating leases. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one year to five years, or more. The depreciable lives of assets and leasehold improvements are limited by the expected lease term. Certain lease agreements held by the Company include rental payments adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

In 2007, the Company completed construction of a manufacturing facility in Belgium. Costs related to the facility totaled $13.2 million. The lease was accounted for as a finance lease and had an initial term of 15 years and an initial interest rate of 7.1 percent. The Company entered into a new agreement in 2022 to extend the building lease an additional 3 years and eight months for a maturity of June 9, 2026 which also includes a purchase option exercisable in May of each year of the renewal period.

In 2020, the Company realized a gain of $29.2 million from the sale-leaseback of the Company headquarters in Orlando, Florida along with the sale of certain surrounding land.

Components of lease expense were as follows:

Year Ended
(In millions of U.S. Dollars)December 31,
2022
December 25,
2021
December 26,
2020
Operating lease cost (a) (b)
$34.9 $39.2 $40.0 
Amortization of right-of-use assets (a)
$0.6 $0.6 $0.8 
Interest on lease liabilities (c)
— 0.1 0.2 
Finance lease cost$0.6 $0.7 $1.0 

(a)Included in Selling, general and administrative expense and Cost of products sold in the Consolidated Statements of (Loss) Income.
(b)Includes $2.9 million, $3.3 million and $2.8 million related to short-term rent expense for leases with a term of twelve months or less in 2022, 2021 and 2020, respectively, and $2.5 million, $1.7 million and $0.9 million related to variable rent expense in 2022, 2021 and 2020, respectively.
(c)Included in Interest expense in the Consolidated Statements of (Loss) Income.

Supplemental cash flow information related to leases is as follows:

Year Ended
(In millions of U.S. Dollars)December 31,
2022
December 25,
2021
December 26,
2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$(35.3)$(38.6)$(37.0)
Financing cash flows from finance leases$(1.7)$(1.4)$(0.6)
Supplemental information related to leases is as follows:

As of
(In millions of U.S. Dollars, except lease term and discount rate)December 31,
2022
December 25,
2021
Operating leasesBalance Sheet Location
Operating lease right-of-use assetsOperating lease assets$69.1 $74.7 
Current portion of operating lease liabilitiesAccrued liabilities$18.6 $20.3 
Long-term operating lease liabilitiesOperating lease liabilities53.7 56.8 
Total operating lease liabilities$72.3 $77.1 
Finance leases
Finance lease right-of-use assets, at costProperty, plant and equipment, net$17.1 $18.2 
Finance lease right-of-use assets, accumulated amortizationProperty, plant and equipment, net(12.6)(12.8)
Finance lease right-of-use asset, netProperty, plant and equipment, net$4.5 $5.4 
Current portion of finance lease liabilitiesCurrent debt and finance lease obligations$0.5 $1.4 
Long-term finance lease liabilities
Long-term debt and other lease obligations— 0.4 
Total finance lease liabilities$0.5 $1.8 
Weighted-average remaining lease term
Operating leases5.5 years5.7 years
Finance leases3.4 years4.4 years
Weighted-average discount rate (a)
Operating leases
8.5 %5.3 %
Finance leases7.1 %7.1 %

(a)Calculated using the Company’s incremental borrowing rate.

Maturities of lease liabilities as of December 31, 2022 were as follows:
As of
December 31,
2022
(In millions of U.S. Dollars)Operating Leases (a)Finance Leases
2023$24.3 0.5 
202417.7 — 
202511.8 — 
20267.9 — 
20277.0 — 
Thereafter22.3 — 
Total lease payments91.0 0.5 
Less imputed interest(18.7)— 
Total$72.3 $0.5 

(a)Annual long-term lease liabilities for continuing operations were calculated by deducting long-term liabilities for discontinued operations averaged over the years 2023 and beyond.

As of December 31, 2022, the Company did not have any operating leases not yet commenced but expected to commence in 2023.