Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

LEASES

Lessor Information related to Intuitive System Leasing

Sales-type Leases. Lease receivables relating to sales-type lease arrangements are presented on the Consolidated Balance Sheets as follows (in millions):

	December 31,
	2021		2020
Gross lease receivables	$	404.0	$	286.1
Unearned income	(11.4)		(11.1)
Subtotal	392.6		275.0
Allowance for credit loss	(3.6)		(4.4)
Net investment in sales-type leases	$	389.0	$	270.6
Reported as:
Prepaids and other current assets	$	110.3	$	81.1
Intangible and other assets, net	278.7		189.5
Total, net	$	389.0	$	270.6

Contractual maturities of gross lease receivables as of December 31, 2021, are as follows (in millions):

Fiscal Year	Amount
2022	$	117.8
2023	102.8
2024	90.3
2025	61.1
2026	29.3
2027 and thereafter	2.7
Total	$	404.0

Operating Leases. The Company’s operating lease terms are generally less than seven years. Future minimum lease payments related to the non-cancellable portion of operating leases (which excludes contingent payments related to usage-based arrangements) as of December 31, 2021, are as follows (in millions):

Fiscal Year	Amount
2022	$	260.3
2023	223.8
2024	173.6
2025	121.8
2026	61.2
2027 and thereafter	21.9
Total	$	862.6

Variable lease revenue relating to usage-based arrangements was not material for the years ended December 31, 2021, 2020, and 2019.

Lessee Information

The Company enters into operating leases for real estate, automobiles, and certain equipment. Operating lease expense was $20.4 million, $21.0 million, and $19.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. For leases with terms of 12 months or less, the related expense was not material for each of the years ended December 31, 2021, 2020, and 2019.

Supplemental cash flow information for the years ended December 31, 2021, 2020, and 2019 related to operating leases was as follows (in millions):

	Years Ended December 31,
	2021		2020		2019
Cash paid for leases that were included within operating cash outflows	$	23.2	$	11.0	$	18.8
Right-of-use assets recognized related to new lease obligations	$	30.6	$	9.6	$	21.5

Supplemental balance sheet information, as of December 31, 2021, and 2020, related to operating leases was as follows (in millions, except lease term and discount rate):

	December 31,
Reported as:	2021			2020
Intangible and other assets, net (Right-of-use assets)	$	74.4		$	63.9
Other accrued liabilities	$	20.4		$	21.9
Other long-term liabilities	66.6			58.0
Total lease liabilities	$	87.0		$	79.9
Weighted-average remaining lease term	4.9 years			5.3 years
Weighted-average discount rate	2.5		%	3.2		%

As of December 31, 2021, the future payments related to the Company’s operating lease liabilities are scheduled as follows (in millions):

Fiscal Year	Amount
2022	$	22.0
2023	21.9
2024	16.6
2025	14.5
2026	12.1
2027 and thereafter	9.1
Total lease payments	96.2
Less imputed interest	(9.2)
Total operating lease liabilities	$	87.0

Leases

LEASES

Lessor Information related to Intuitive System Leasing

Sales-type Leases. Lease receivables relating to sales-type lease arrangements are presented on the Consolidated Balance Sheets as follows (in millions):

	December 31,
	2021		2020
Gross lease receivables	$	404.0	$	286.1
Unearned income	(11.4)		(11.1)
Subtotal	392.6		275.0
Allowance for credit loss	(3.6)		(4.4)
Net investment in sales-type leases	$	389.0	$	270.6
Reported as:
Prepaids and other current assets	$	110.3	$	81.1
Intangible and other assets, net	278.7		189.5
Total, net	$	389.0	$	270.6

Contractual maturities of gross lease receivables as of December 31, 2021, are as follows (in millions):

Fiscal Year	Amount
2022	$	117.8
2023	102.8
2024	90.3
2025	61.1
2026	29.3
2027 and thereafter	2.7
Total	$	404.0

Operating Leases. The Company’s operating lease terms are generally less than seven years. Future minimum lease payments related to the non-cancellable portion of operating leases (which excludes contingent payments related to usage-based arrangements) as of December 31, 2021, are as follows (in millions):

Fiscal Year	Amount
2022	$	260.3
2023	223.8
2024	173.6
2025	121.8
2026	61.2
2027 and thereafter	21.9
Total	$	862.6

Variable lease revenue relating to usage-based arrangements was not material for the years ended December 31, 2021, 2020, and 2019.

Lessee Information

The Company enters into operating leases for real estate, automobiles, and certain equipment. Operating lease expense was $20.4 million, $21.0 million, and $19.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. For leases with terms of 12 months or less, the related expense was not material for each of the years ended December 31, 2021, 2020, and 2019.

Supplemental cash flow information for the years ended December 31, 2021, 2020, and 2019 related to operating leases was as follows (in millions):

	Years Ended December 31,
	2021		2020		2019
Cash paid for leases that were included within operating cash outflows	$	23.2	$	11.0	$	18.8
Right-of-use assets recognized related to new lease obligations	$	30.6	$	9.6	$	21.5

Supplemental balance sheet information, as of December 31, 2021, and 2020, related to operating leases was as follows (in millions, except lease term and discount rate):

	December 31,
Reported as:	2021			2020
Intangible and other assets, net (Right-of-use assets)	$	74.4		$	63.9
Other accrued liabilities	$	20.4		$	21.9
Other long-term liabilities	66.6			58.0
Total lease liabilities	$	87.0		$	79.9
Weighted-average remaining lease term	4.9 years			5.3 years
Weighted-average discount rate	2.5		%	3.2		%

As of December 31, 2021, the future payments related to the Company’s operating lease liabilities are scheduled as follows (in millions):

Fiscal Year	Amount
2022	$	22.0
2023	21.9
2024	16.6
2025	14.5
2026	12.1
2027 and thereafter	9.1
Total lease payments	96.2
Less imputed interest	(9.2)
Total operating lease liabilities	$	87.0