Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

Lessor

SEE has contractual obligations as a lessor with respect to some of our automated and equipment solutions including "free on loan" equipment and leased equipment, both sales-type and operating. The consideration in a contract that contains both lease and non-lease components is allocated based on the standalone selling price.

Our contractual obligations for operating leases can include termination and renewal options. Our contractual obligations for sales-type leases tend to have fixed terms and can include purchase options. We utilize the reasonably certain threshold criteria in determining which options our customers will exercise.

All lease payments are primarily fixed in nature and therefore captured in the lease receivable. Our sales-type lease receivable balances at December 31, 2023 and 2022 were as follows:

	December 31,
(In millions)	2023		2022
Short-Term (12 months or less)	$	8.5	$	6.5
Long-Term	33.3		18.6
Lease receivables	$	41.8	$	25.1

Sales-type and operating lease revenue was less than 1% of net trade sales for each of the years ended December 31, 2023, 2022, and 2021.

Lessee

SEE has contractual obligations as a lessee with respect to warehouses, offices and manufacturing facilities, IT equipment, automobiles, and material production equipment.

The following table details our lease obligations included in our Consolidated Balance Sheets.

	December 31,
(In millions)	2023		2022
Other non-current assets:
Finance leases - ROU assets	$	36.0	$	55.0
Finance leases - Accumulated depreciation	(14.9)		(31.7)
Operating lease right-of-use-assets:
Operating leases - ROU assets	203.1		156.7
Operating leases - Accumulated depreciation	(116.6)		(86.5)
Total lease assets	$	107.6	$	93.5
Current portion of long-term debt:
Finance leases	$	(6.7)	$	(7.6)
Current portion of operating lease liabilities:
Operating leases	(29.2)		(24.0)
Long-term debt, less current portion:
Finance leases	(12.8)		(16.1)
Long-term operating lease liabilities, less current portion:
Operating leases	(66.7)		(49.6)
Total lease liabilities	$	(115.4)	$	(97.3)

At December 31, 2023, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows:

(In millions)	Finance leases		Operating leases
2024	$	8.1	$	33.3
2025	5.0		26.8
2026	3.1		20.8
2027	1.5		11.8
2028	0.8		7.0
Thereafter	8.0		9.0
Total lease payments	26.5		108.7
Less: Interest	(7.0)		(12.8)
Present value of lease liabilities	$	19.5	$	95.9

The following lease cost is included in our Consolidated Statements of Operations:

	December 31,
(In millions)	2023		2022
Lease cost(1)
Finance leases
Amortization of ROU assets	$	10.0	$	10.5
Interest on lease liabilities	1.8		1.3
Operating leases	37.5		33.2
Short-term lease cost	3.5		2.7
Variable lease cost	6.6		7.0
Total lease cost	$	59.4	$	54.7

(1)With the exception of Interest on lease liabilities, we record lease costs to Cost of sales or Selling, general and administrative expenses on the Consolidated Statements of Operations, depending on the use of the leased asset. Interest on lease liabilities is recorded to Interest expense, net on the Consolidated Statements of Operations.

The following table details cash paid related to operating and finance leases included in our Consolidated Statements of Cash Flows and new ROU assets included in our Consolidated Balance Sheets:

	December 31,
(In millions)	2023		2022
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - finance leases	$	4.3	$	5.4
Operating cash flows - operating leases	$	37.7	$	30.6
Financing cash flows - finance leases	$	9.0	$	10.0
ROU assets obtained in exchange for new finance lease liabilities	$	16.7	$	8.8
ROU assets obtained in exchange for new operating lease liabilities	$	49.9	$	34.4

	December 31,
	2023		2022
Weighted average information:
Finance leases
Remaining lease term (in years)	6.4		6.1
Discount rate	7.4	%	4.9	%
Operating leases
Remaining lease term (in years)	4.1		4.2
Discount rate	5.8	%	4.8	%

Leases

Leases

Lessor

SEE has contractual obligations as a lessor with respect to some of our automated and equipment solutions including "free on loan" equipment and leased equipment, both sales-type and operating. The consideration in a contract that contains both lease and non-lease components is allocated based on the standalone selling price.

Our contractual obligations for operating leases can include termination and renewal options. Our contractual obligations for sales-type leases tend to have fixed terms and can include purchase options. We utilize the reasonably certain threshold criteria in determining which options our customers will exercise.

All lease payments are primarily fixed in nature and therefore captured in the lease receivable. Our sales-type lease receivable balances at December 31, 2023 and 2022 were as follows:

	December 31,
(In millions)	2023		2022
Short-Term (12 months or less)	$	8.5	$	6.5
Long-Term	33.3		18.6
Lease receivables	$	41.8	$	25.1

Sales-type and operating lease revenue was less than 1% of net trade sales for each of the years ended December 31, 2023, 2022, and 2021.

Lessee

SEE has contractual obligations as a lessee with respect to warehouses, offices and manufacturing facilities, IT equipment, automobiles, and material production equipment.

The following table details our lease obligations included in our Consolidated Balance Sheets.

	December 31,
(In millions)	2023		2022
Other non-current assets:
Finance leases - ROU assets	$	36.0	$	55.0
Finance leases - Accumulated depreciation	(14.9)		(31.7)
Operating lease right-of-use-assets:
Operating leases - ROU assets	203.1		156.7
Operating leases - Accumulated depreciation	(116.6)		(86.5)
Total lease assets	$	107.6	$	93.5
Current portion of long-term debt:
Finance leases	$	(6.7)	$	(7.6)
Current portion of operating lease liabilities:
Operating leases	(29.2)		(24.0)
Long-term debt, less current portion:
Finance leases	(12.8)		(16.1)
Long-term operating lease liabilities, less current portion:
Operating leases	(66.7)		(49.6)
Total lease liabilities	$	(115.4)	$	(97.3)

At December 31, 2023, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows:

(In millions)	Finance leases		Operating leases
2024	$	8.1	$	33.3
2025	5.0		26.8
2026	3.1		20.8
2027	1.5		11.8
2028	0.8		7.0
Thereafter	8.0		9.0
Total lease payments	26.5		108.7
Less: Interest	(7.0)		(12.8)
Present value of lease liabilities	$	19.5	$	95.9

The following lease cost is included in our Consolidated Statements of Operations:

	December 31,
(In millions)	2023		2022
Lease cost(1)
Finance leases
Amortization of ROU assets	$	10.0	$	10.5
Interest on lease liabilities	1.8		1.3
Operating leases	37.5		33.2
Short-term lease cost	3.5		2.7
Variable lease cost	6.6		7.0
Total lease cost	$	59.4	$	54.7

(1)With the exception of Interest on lease liabilities, we record lease costs to Cost of sales or Selling, general and administrative expenses on the Consolidated Statements of Operations, depending on the use of the leased asset. Interest on lease liabilities is recorded to Interest expense, net on the Consolidated Statements of Operations.

The following table details cash paid related to operating and finance leases included in our Consolidated Statements of Cash Flows and new ROU assets included in our Consolidated Balance Sheets:

	December 31,
(In millions)	2023		2022
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - finance leases	$	4.3	$	5.4
Operating cash flows - operating leases	$	37.7	$	30.6
Financing cash flows - finance leases	$	9.0	$	10.0
ROU assets obtained in exchange for new finance lease liabilities	$	16.7	$	8.8
ROU assets obtained in exchange for new operating lease liabilities	$	49.9	$	34.4

	December 31,
	2023		2022
Weighted average information:
Finance leases
Remaining lease term (in years)	6.4		6.1
Discount rate	7.4	%	4.9	%
Operating leases
Remaining lease term (in years)	4.1		4.2
Discount rate	5.8	%	4.8	%