Leases

12 Months Ended

Dec. 31, 2023

Operating Leases

Teledyne has more than 150 long-term operating lease agreements for manufacturing facilities and office space. These agreements frequently include one or more renewal options and may require the Company to pay for non-lease components such as utilities, taxes, insurance and maintenance expense. The Company accounts for lease and non-lease components as a single lease component when the payments are fixed. Variable payments included in the lease agreement are expensed as incurred. No lease agreement imposes a restriction on the Company’s ability to engage in financing transactions or enter into further lease agreements. At December 31, 2023, Teledyne has right-of-use assets of $141.7 million included in noncurrent other assets, net on the consolidated balance sheets.

At December 31, 2023, future minimum lease payments for operating leases with non-cancelable terms of more than one year were as follows (in millions):


Operating lease commitments:
2024	$	36.4
2025	33.2
2026	27.3
2027	22.3
2028	15.9
Thereafter	39.4
Total minimum lease payments	174.5
Less:
Imputed interest	(21.0)
Current portion (included in current accrued liabilities)	(30.1)
Present value of minimum lease payments, net of current portion (included in other long-term liabilities)	$	123.4

The weighted average remaining lease term for operating leases is approximately 6.4 years and the weighted average discount rate is approximately 4.72%. Rental expense under operating leases, including leases with a term of 12 months or less, net of immaterial sublease income, was $43.9 million in 2023, $45.1 million in 2022 and $40.9 million in 2021. Variable lease expense was $1.6 million in 2023, $5.9 million in 2022 and $5.8 million in 2021. Cash paid for amounts included in the measurement of lease liabilities was $39.5 million for 2023 and $36.9 million for 2022. Right-of-use assets obtained in exchange for lease obligations was $21.7 million for 2023 and $26.1 million for 2022.

Finance Leases and Subleases

The Company’s finance leases and subleases are not material.