Leases

6 Months Ended

Jun. 30, 2023

Leases

Leases

22.    Leases

The Company enters into commercial leases for various auctions sites, branches and offices, the majority of which are non-cancellable, and additional operating leases for computer equipment, motor vehicles and small office equipment. With the exception of one lease expiring in 2092, the majority of the Company’s operating leases have a fixed term with a remaining life between one month and 20 years, with renewal options included in the contracts. The leases have varying contract terms, escalation clauses and renewal options.

The Company also enters into finance lease arrangements for certain vehicles, computer and yard equipment, fixtures, and office furniture, the majority of these leases have a fixed term with a remaining life of one month to six years with renewal options included in the contracts.

On March 17, 2022, the Company completed the sale and leaseback of its Bolton property, a parcel of land including all buildings, in Bolton, Ontario. The Company intends to lease the Bolton property for a period of 28 months until such time that the replacement property is available for the relocation of the Company’s operations. The lease has an initial rent-free period of two years and an option to renew the lease for two additional one-year periods, during which time the lease is cancellable at one month’s notice. Upon completion of the sale, the Company recorded a $16.6 million ROU asset representing the right-of-use of the Bolton property for the estimated lease term and a $4.5 million long-term lease liability representing the obligation to make lease payments arising from the operating lease at the end of the initial two-year period.

The Company’s breakdown of lease expense is as follows:

	Three months ended				Six months ended
	June 30,				June 30,
	2023		2022		2023		2022
Operating lease cost	$	59.1	$	6.2	$	72.2	$	10.9
Finance lease cost
Amortization of leased assets		0.6		2.6		5.9		5.2
Interest on lease liabilities		0.2		0.2		0.6		0.4
Short-term lease cost		4.2		2.9		7.7		6.4
Sublease income		—		—		(0.1)		—
	$	64.1	$	11.9	$	86.3	$	22.9