Leases (Tables)

3 Months Ended

Mar. 31, 2024

Summary of Lease Payments Captured in Lease Receivable

All lease payments are primarily fixed in nature and therefore captured in the lease receivable. Our sales-type lease receivable balances at March 31, 2024 and December 31, 2023 were as follows:


(In millions)	March 31, 2024		December 31, 2023
Short-Term (12 months or less)	$	8.7	$	8.5
Long-Term	33.3		33.3
Lease receivables	$	42.0	$	41.8

Assets and Liabilities, Lessee

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


(In millions)	March 31, 2024		December 31, 2023
Other non-current assets:
Finance leases - ROU assets	$	37.5	$	36.0
Finance leases - Accumulated depreciation	(15.3)		(14.9)
Operating lease right-of-use-assets:
Operating leases - ROU assets	195.5		203.1
Operating leases - Accumulated depreciation	(115.2)		(116.6)
Total lease assets	$	102.5	$	107.6
Current portion of long-term debt:
Finance leases	$	(7.1)	(6.7)
Current portion of operating lease liabilities:
Operating leases	(27.4)		(29.2)
Long-term debt, less current portion:
Finance leases	(13.8)		(12.8)
Long-term operating lease liabilities, less current portion:
Operating leases	(61.8)		(66.7)
Total lease liabilities	$	(110.1)	$	(115.4)

Operating Lease, Future Minimum Annual Rental Commitments

At March 31, 2024, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows:


(In millions)	Finance leases		Operating leases
Remainder of 2024	$	6.6	$	24.9
2025	6.1		27.5
2026	4.1		21.2
2027	1.9		12.1
2028	1.0		7.1
Thereafter	8.1		10.3
Total lease payments	27.8		103.1
Less: Interest	(6.9)		(13.9)
Present value of lease liabilities	$	20.9	$	89.2

Finance Lease, Future Minimum Annual Rental Commitments

At March 31, 2024, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows:


(In millions)	Finance leases		Operating leases
Remainder of 2024	$	6.6	$	24.9
2025	6.1		27.5
2026	4.1		21.2
2027	1.9		12.1
2028	1.0		7.1
Thereafter	8.1		10.3
Total lease payments	27.8		103.1
Less: Interest	(6.9)		(13.9)
Present value of lease liabilities	$	20.9	$	89.2

Schedule of Lease Costs and Other Information

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


	Three Months Ended March 31,
(In millions)		2024		2023
Lease cost(1)
Finance leases
Amortization of ROU assets		$	2.0	$	2.5
Interest on lease liabilities		0.4		0.4
Operating leases		9.4		9.0
Short-term lease cost		0.2		0.6
Variable lease cost		1.7		1.8
Total lease cost		$	13.7	$	14.3

(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 Condensed Consolidated Statements of Operations, depending on the use of the leased asset. Interest on lease liabilities is recorded to Interest expense, net on the Condensed Consolidated Statements of Operations.

The following table details cash paid related to operating and finance leases included in our Condensed Consolidated Statements of Cash Flows and new right-of-use (“ROU”) assets included in our Condensed Consolidated Balance Sheets:


	Three Months Ended March 31,
(In millions)	2024		2023
Other information:

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - finance leases	$	0.9	$	1.1
Operating cash flows - operating leases	$	9.8	$	9.1
Financing cash flows - finance leases	$	1.8	$	2.3

ROU assets obtained in exchange for new finance lease liabilities	$	3.3	$	5.9
ROU assets obtained in exchange for new operating lease liabilities	$	2.3	$	20.8


	Three Months Ended March 31,
	2024		2023
Weighted average information:
Finance leases
Remaining lease term (in years)	5.9		8.3
Discount rate	7.5	%	6.3	%
Operating leases
Remaining lease term (in years)	4.3		4.4
Discount rate	6.0	%	5.3	%