Leases

3 Months Ended

Mar. 31, 2024

A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. Lease payments included in the measurement of the operating lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise.

The components of lease expense were as follows:


	Three Months Ended March 31,
($ in millions)	2024		2023
Operating lease cost	$	5.6	$	5.9
Short-term lease cost	0.5		1.3
Variable lease cost	1.9		1.7
Total lease cost	$	8.0	$	8.9

Supplemental cash flow information related to leases was as follows:


	Three Months Ended March 31,
($ in millions)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5.3	$	4.9
Right-of-use assets obtained in exchange for new operating lease liabilities	$	4.2	$	0.6

As of March 31, 2024 and December 31, 2023, the weighted average remaining lease term for operating leases was 9.4 years and 9.8 years, respectively.

As of March 31, 2024 and December 31, 2023, the weighted average discount rate was 3.55% and 3.55%, respectively.

Maturities of operating lease liabilities were as follows:


($ in millions)	March 31,		December 31,
Year	2024		2023
2024 (remaining period as of)	$	16.0	$	20.9
2025	19.5		18.7
2026	16.5		15.7
2027	11.9		11.2
2028	10.1		9.5
Thereafter	41.7		42.1
	115.7		118.1
Less: imputed lease interest	(15.3)		(15.9)
Total lease liabilities	$	100.4	$	102.2