Leases

6 Months Ended

Jul. 02, 2022

Leases [Abstract]

Leases

LEASES

The balance sheet locations of our lease assets and liabilities were as follows (in millions):

Assets	Balance Sheet Location	July 2, 2022		December 31, 2021
Operating	Operating lease assets	$	207.1	$	166.9
Finance	Other non-current assets	24.4		27.9
Total		$	231.5	$	194.8

Liabilities	Balance Sheet Location	July 2, 2022		December 31, 2021
Current
Operating	Other accrued liabilities	$	27.2	$	26.0
Finance	Current indebtedness	4.2		4.9
Non-Current
Operating	Other non-current liabilities	178.6		147.3
Finance	Long-term debt, less current portion	18.6		20.9
Total		$	228.6	$	199.1

The below tables show our lease assets and liabilities by reporting segment (in millions):

	Assets
	Operating				Financing
	July 2, 2022		December 31, 2021		July 2, 2022		December 31, 2021
CSCA	$	102.8	$	98.2	$	14.5	$	15.3
CSCI	33.5		30.7		6.9		7.9
Unallocated	70.8		38.0		3.0		4.7
Total	$	207.1	$	166.9	$	24.4	$	27.9

	Liabilities
	Operating				Financing
	July 2, 2022		December 31, 2021		July 2, 2022		December 31, 2021
CSCA	$	103.9	$	99.7	$	15.5	$	16.0
CSCI	34.9		31.8		4.3		5.0
Unallocated	67.0		41.8		3.0		4.8
Total	$	205.8	$	173.3	$	22.8	$	25.8

Lease expense was as follows (in millions):

	Three Months Ended				Six Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Operating leases(1)	$	10.8	$	9.8	$	20.6	$	19.7
Finance leases
Amortization	$	1.4	$	1.5	$	2.9	$	3.0
Interest	0.2		0.2		0.4		0.4
Total finance leases	$	1.6	$	1.7	$	3.3	$	3.4

            (1) Includes short-term leases and variable lease costs, which are immaterial.

The annual future maturities of our leases as of July 2, 2022 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2022	$	16.9	$	2.6	$	19.5
2023	30.3		3.8		34.1
2024	26.4		2.3		28.7
2025	23.0		2.2		25.2
2026	18.6		2.0		20.6
After 2026	123.4		13.6		137.0
Total lease payments	238.6		26.5		265.1
Less: Interest	32.8		3.7		36.5
Present value of lease liabilities	$	205.8	$	22.8	$	228.6

Our weighted average lease terms and discount rates are as follows:

	July 2, 2022		July 3, 2021
Weighted-average remaining lease term (in years)
Operating leases	11.45		11.59
Finance leases	9.37		9.24
Weighted-average discount rate
Operating leases	2.53	%	2.71	%
Finance leases	2.86	%	2.76	%

Our lease cash flow classifications are as follows (in millions):

	Six Months Ended
	July 2, 2022		July 3, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	16.6	$	18.2
Operating cash flows for finance leases	$	0.3	$	0.4
Financing cash flows for finance leases	$	2.6	$	2.6
Leased assets obtained in exchange for new finance lease liabilities	$	—	$	4.4
Leased assets obtained in exchange for new operating lease liabilities	$	42.8	$	34.9

Leases

LEASES

The balance sheet locations of our lease assets and liabilities were as follows (in millions):

Assets	Balance Sheet Location	July 2, 2022		December 31, 2021
Operating	Operating lease assets	$	207.1	$	166.9
Finance	Other non-current assets	24.4		27.9
Total		$	231.5	$	194.8

Liabilities	Balance Sheet Location	July 2, 2022		December 31, 2021
Current
Operating	Other accrued liabilities	$	27.2	$	26.0
Finance	Current indebtedness	4.2		4.9
Non-Current
Operating	Other non-current liabilities	178.6		147.3
Finance	Long-term debt, less current portion	18.6		20.9
Total		$	228.6	$	199.1

The below tables show our lease assets and liabilities by reporting segment (in millions):

	Assets
	Operating				Financing
	July 2, 2022		December 31, 2021		July 2, 2022		December 31, 2021
CSCA	$	102.8	$	98.2	$	14.5	$	15.3
CSCI	33.5		30.7		6.9		7.9
Unallocated	70.8		38.0		3.0		4.7
Total	$	207.1	$	166.9	$	24.4	$	27.9

	Liabilities
	Operating				Financing
	July 2, 2022		December 31, 2021		July 2, 2022		December 31, 2021
CSCA	$	103.9	$	99.7	$	15.5	$	16.0
CSCI	34.9		31.8		4.3		5.0
Unallocated	67.0		41.8		3.0		4.8
Total	$	205.8	$	173.3	$	22.8	$	25.8

Lease expense was as follows (in millions):

	Three Months Ended				Six Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Operating leases(1)	$	10.8	$	9.8	$	20.6	$	19.7
Finance leases
Amortization	$	1.4	$	1.5	$	2.9	$	3.0
Interest	0.2		0.2		0.4		0.4
Total finance leases	$	1.6	$	1.7	$	3.3	$	3.4

            (1) Includes short-term leases and variable lease costs, which are immaterial.

The annual future maturities of our leases as of July 2, 2022 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2022	$	16.9	$	2.6	$	19.5
2023	30.3		3.8		34.1
2024	26.4		2.3		28.7
2025	23.0		2.2		25.2
2026	18.6		2.0		20.6
After 2026	123.4		13.6		137.0
Total lease payments	238.6		26.5		265.1
Less: Interest	32.8		3.7		36.5
Present value of lease liabilities	$	205.8	$	22.8	$	228.6

Our weighted average lease terms and discount rates are as follows:

	July 2, 2022		July 3, 2021
Weighted-average remaining lease term (in years)
Operating leases	11.45		11.59
Finance leases	9.37		9.24
Weighted-average discount rate
Operating leases	2.53	%	2.71	%
Finance leases	2.86	%	2.76	%

Our lease cash flow classifications are as follows (in millions):

	Six Months Ended
	July 2, 2022		July 3, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	16.6	$	18.2
Operating cash flows for finance leases	$	0.3	$	0.4
Financing cash flows for finance leases	$	2.6	$	2.6
Leased assets obtained in exchange for new finance lease liabilities	$	—	$	4.4
Leased assets obtained in exchange for new operating lease liabilities	$	42.8	$	34.9