Leases

12 Months Ended

Dec. 31, 2023

LEASES

Total lease expense for the years ended December 31, 2023, 2022 and 2021, was $60.9 million, $48.9 million and $45.4 million, respectively, and is classified within Cost of goods sold and Selling and administrative expenses within the Consolidated Statements of Comprehensive Income. Lease expense related to short-term leases, variable lease payments or other leases or lease components not included within the ROU asset or lease liability totaled $16.9 million, $9.6 million and $8.2 million, respectively, for the years ended December 31, 2023, 2022 and 2021. No material lease costs have been capitalized on the Consolidated Balance Sheets as of December 31, 2023 or 2022.

Amounts included within the Consolidated Balance Sheets related to the Company's ROU asset and lease liability were as follows:


		December 31, 2023								December 31, 2022
In millions	Balance Sheet classification	Real estate			Equipment			Total		Real estate			Equipment			Total
ROU asset	Other noncurrent assets	$	114.7		$	33.4		$	148.1	$	69.3		$	28.8		$	98.1
Lease liability - current	Accrued expenses and other current liabilities	18.7			15.0			33.7		17.7			14.1			31.8
Lease liability - noncurrent	Other noncurrent liabilities	98.9			18.4			117.3		54.8			14.7			69.5

Other information:
Weighted-average remaining term (years)		11.6			2.7					5.9			2.4
Weighted-average discount rate		5.0		%	4.4		%			3.5		%	2.1		%

The following table summarizes additional information related to the Company's leases for the years ended December 31:


	2023						2022
In millions	Real estate		Equipment		Total		Real estate		Equipment		Total
Cash paid for amounts included in the measurement of lease liabilities	$	24.2	$	19.8	$	44.0	$	20.6	$	18.7	$	39.3
ROU assets obtained in exchange for new lease liabilities (a)	64.7		18.8		83.5		32.2		13.2		45.4

(a)The significant increase in ROU assets obtained in exchange for new lease liabilities for the year ended December 31, 2023 compared to the year ended December 31, 2022 is primarily due to two new manufacturing and assembly facility leases in the Allegion Americas segment.

Future Repayments

Future minimum lease payments required under non-cancellable operating leases for both the real estate and equipment lease portfolios for the next five years and thereafter as of December 31, 2023, were as follows:


In millions	2024		2025		2026		2027		2028		Thereafter		Total
Real estate leases	$	23.9	$	21.7	$	18.3	$	14.4	$	9.3	$	74.5	$	162.1
Equipment leases	16.1		10.9		5.2		2.4		1.0		—		35.6
Total	$	40.0	$	32.6	$	23.5	$	16.8	$	10.3	$	74.5	$	197.7

The difference between the total undiscounted minimum lease payments and the combined current and noncurrent lease liabilities as of December 31, 2023, is due to imputed interest of $46.7 million.