Leases

3 Months Ended

Mar. 31, 2024

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.

The components of ROU assets and lease liabilities and the classification within the Condensed Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 were as follows:


(millions)	Classification	March 31, 2024		December 31, 2023
Assets
Operating	Right-of-use assets	$	172.7	$	179.4
Finance	Property and equipment, net		27.5		24.6
Total leased assets		$	200.2	$	204.0
Liabilities
Current
Operating	Short-term lease liabilities	$	54.3	$	56.2
Finance	Current portion of long-term borrowings		8.1		7.5
Noncurrent
Operating	Long-term lease liabilities		150.3		158.0
Finance	Long-term borrowings, excluding current portion		18.9		16.6
Total lease liabilities		$	231.6	$	238.3

The components of net lease cost and classification within the Condensed Consolidated Statements of Income during the three months ended March 31, 2024 and 2023 (unaudited) were as follows:


		Three Months Ended
(millions)	Classification	March 31, 2024		March 31, 2023
Operating lease (a)(b)	Cost of services - lease type contracts	$	14.2	$	13.8
Short-term lease (a)	Cost of services - lease type contracts		6.0		4.9
Variable lease	Cost of services - lease type contracts		15.2		18.2
Operating lease cost			35.4		36.9
Finance lease cost
Amortization of leased assets	Depreciation and amortization		1.8		1.6
Interest on lease liabilities	Interest expense		0.4		0.3
Net lease cost		$	37.6	$	38.8

(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 during the three months ended March 31, 2024 and 2023.

(b)

Included rent concessions of $1.1 million and $1.3 million during the three months ended March 31, 2024 and 2023, respectively.

Sublease income was $0.2 million and $0.5 million during the three months ended March 31, 2024 and 2023, respectively.

Maturities, lease term and discount rate information of lease liabilities as of March 31, 2024 (unaudited) were as follows:


(millions)	Operating Leases Liabilities			Finance Leases Liabilities			Total
2024	$	49.5		$	7.4		$	56.9
2025		54.9			7.9			62.8
2026		42.9			6.4			49.3
2027		29.1			4.3			33.4
2028		23.0			2.5			25.5
After 2028		36.4			2.1			38.5
Total lease payments		235.8			30.6			266.4
Less: Imputed interest		31.2			3.6			34.8
Present value of lease liabilities	$	204.6		$	27.0		$	231.6
Weighted-average remaining lease term (years)		5.0			4.0
Weighted-average discount rate		5.6	%		6.5	%

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

Supplemental cash flow information related to leases during the three months ended March 31, 2024 and 2023 (unaudited) was as follows:


	Three Months Ended
(millions)	March 31, 2024		March 31, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows related to operating leases	$	20.5	$	20.8
Operating cash outflows related to interest on finance leases		0.4		0.3
Financing cash outflows related to finance leases		1.9		1.9
Leased assets obtained in exchange for new operating lease liabilities		5.0		7.8
Leased assets obtained in exchange for new finance lease liabilities		5.0		1.7