Leases

9 Months Ended

Sep. 30, 2023

3. Leases

The Company leases parking facilities, office space, warehouses, vehicles and equipment and determines if an arrangement is a lease at inception. The Company subleases certain real estate to third parties. The Company's sublease portfolio consists of operating leases for space within leased parking facilities.

As discussed in Note 1. Significant Accounting Policies and Practices, the Company tests ROU assets for impairment when impairment indicators are present.

The components of ROU assets and lease liabilities and the classification within the Condensed Consolidated Balance Sheets as of September 30, 2023 (unaudited) and December 31, 2022 were as follows:


(millions)	Classification	September 30, 2023		December 31, 2022
Assets
Operating	Right-of-use assets	$	173.7	$	166.9
Finance	Property and equipment, net		24.1		24.4
Total leased assets		$	197.8	$	191.3
Liabilities
Current
Operating	Short-term lease liabilities	$	56.4	$	60.2
Finance	Current portion of long-term borrowings		7.0		7.2
Noncurrent
Operating	Long-term lease liabilities		154.9		158.5
Finance	Long-term borrowings, excluding current portion		16.0		16.0
Total lease liabilities		$	234.3	$	241.9

The components of lease cost and classification within the Condensed Consolidated Statements of Income during the three and nine months ended September 30, 2023 and 2022 (unaudited) were as follows:


		Three Months Ended				Nine Months Ended
(millions)	Classification	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating lease cost (a)(b)	Cost of services - lease type contracts	$	15.7	$	15.5	$	44.7	$	45.2
Short-term lease (a)	Cost of services - lease type contracts		4.5		4.5		14.7		14.9
Variable lease	Cost of services - lease type contracts		22.4		19.1		63.4		52.4
Operating lease cost			42.6		39.1		122.8		112.5
Finance lease cost
Amortization of leased assets	Depreciation and amortization		1.7		1.5		5.0		4.2
Interest on lease liabilities	Interest expense		0.3		0.2		0.9		0.7
Net lease cost		$	44.6	$	40.8	$	128.7	$	117.4

(a)

Included expense related to leases for office space recorded in General and administrative expenses within the Condensed Consolidated Statements of Income of $1.0 million and $2.9 million during the three and nine months ended September 30, 2023 and 2022, respectively.

(b)

Included rent concessions of $0.8 million and $3.3 million during the three and nine months ended September 30, 2023, respectively, and $1.3 million and $5.0 million during the three and nine months ended September 30, 2022, respectively.

Sublease income was $0.6 million and $0.4 million during the three months ended September 30, 2023 and 2022, respectively, and $1.6 million and $1.0 million during the nine months ended September 30, 2023 and 2022, respectively.

Maturities, lease term and discount rate information of lease liabilities as of September 30, 2023 (unaudited) were as follows:


(millions)	Operating Leases Liabilities			Finance Leases Liabilities			Total
2023	$	18.1		$	2.3		$	20.4
2024		64.6			7.6			72.2
2025		52.1			5.6			57.7
2026		40.4			4.4			44.8
2027		26.4			2.5			28.9
After 2027		52.9			3.3			56.2
Total lease payments		254.5			25.7			280.2
Less: Imputed interest		43.2			2.7			45.9
Present value of lease liabilities	$	211.3		$	23.0		$	234.3
Weighted-average remaining lease term (years)		5.1			4.1
Weighted-average discount rate		5.4	%		5.4	%

Future sublease income for the above periods shown was excluded, as the amounts are not material.

Supplemental cash flow information related to leases during the nine months ended September 30, 2023 and 2022 (unaudited) was as follows:


	Nine Months Ended
(millions)	September 30, 2023		September 30, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows related to operating leases	$	66.3	$	69.0
Operating cash outflows related to interest on finance leases		0.9		0.7
Financing cash outflows related to finance leases		5.7		7.7
Leased assets obtained in exchange for new operating liabilities		49.3		12.4
Leased assets obtained in exchange for new finance lease liabilities		5.6		5.8