Balance Sheet Information

12 Months Ended

Dec. 31, 2021

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Information

Note 8: Balance Sheet Information

Certain significant amounts included in the Company's Consolidated Balance Sheets consist of the following (in millions):

	As of
	December 31, 2021		December 31, 2020
Inventories:
Raw materials	$	174.2	$	135.7
Work in process	888.9		829.7
Finished goods	316.4		286.0
	$	1,379.5	$	1,251.4
Property, plant and equipment, net:
Land	$	118.5	$	119.7
Buildings	968.5		850.0
Machinery and equipment	4,777.8		4,538.0
Property, plant and equipment, gross	5,864.8		5,507.7
Less: Accumulated depreciation	(3,340.5)		(2,995.4)
	$	2,524.3	$	2,512.3
Accrued expenses:
Accrued payroll and related benefits	$	285.4	$	166.8
Sales related reserves	229.9		233.3
Income taxes payable	23.6		25.5
Other (1)	208.7		144.4
	$	747.6	$	570.0

_______________________

(1)The current portion of operating and financing lease liabilities are included in this amount. See discussion below.

Depreciation expense for property, plant and equipment totaled $436.5 million, $444.1 million and $409.7 million for 2021, 2020 and 2019, respectively.

Included within sales related reserves are ship and credit reserves for distributors amounting to $163.8 million and $180.2 million as of December 31, 2021 and 2020, respectively.

Leases

Operating and financing lease arrangements are comprised primarily of real estate and equipment agreements. The Company's existing leases do not contain significant restrictive provisions or residual value guarantees; however, certain leases contain renewal options and provisions for payment of real estate taxes, insurance and maintenance costs by the Company.

The components of operating lease expense are as follows (in millions):

	Year Ended
	December 31, 2021		December 31, 2020		December 31, 2019
Operating lease	$	39.7	$	38.2	$	35.0
Variable lease	3.8		4.2		4.0
Short-term lease	2.0		4.1		2.6
Total lease expense	$	45.5	$	46.5	$	41.6

The operating and financing lease liabilities included in the Consolidated Balance Sheets are as follows (in millions):

	As of
	December 31, 2021		December 31, 2020
Operating lease liabilities included in:
Accrued expenses and other current liabilities	$	32.5	$	32.2
Other long-term liabilities	142.4		115.7
Total	$	174.9	$	147.9
Operating ROU assets included in:
Other assets	$	170.1	136.3
Financing lease liabilities included in:
Accrued expenses and other current liabilities	$	12.7	$	—
Other long-term liabilities	10.2		—
Total	$	22.9	$	—
Financing ROU assets included in:
Other assets	$	22.3	—

As of December 31, 2021, the weighted-average remaining lease-terms and weighted-average discount rates were 8.5 years and 20.0 years and 4.3% and 6.0% for operating and financing leases, respectively.

As of December 31, 2021, there was an insignificant amount of commitments for operating leases that have not yet commenced. The reconciliation of the maturities of the operating and financing leases to the lease liabilities recorded in the Consolidated Balance Sheet as of December 31, 2021 is as follows (in millions):

	Operating Leases		Finance Leases
2022	$	37.9	$	13.6
2023	31.5		0.7
2024	28.7		0.7
2025	19.6		0.7
2026	12.4		0.8
Thereafter	85.0		15.2
Total lease payments	215.1		31.7
Less: Interest	(40.2)		(8.8)
Total lease liabilities	$	174.9	$	22.9