Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

LEASES

The Company determines if an arrangement is or contains a lease at inception. The Company has operating leases for office space, warehouses, distribution centers, research and development facilities, manufacturing locations, and certain equipment, primarily automobiles. For lease agreements with both lease and non-lease components, the Company has elected the practical expedient for all underlying asset classes to account for the lease and related non-lease component(s) as a single lease component. Many leases include one option to renew, some of which include options to extend the lease for up to 15 years, and some of which include options to terminate the leases within one year. Options to renew are included in the measurement of right-of-use assets and lease liabilities if it is determined they are reasonably certain to be exercised. The Company primarily uses its incremental borrowing rate as the discount rate for its leases, as the Company is generally unable to determine the interest rate implicit in the lease. Finance leases were immaterial for the years ended December 31, 2023, 2022 and 2021, respectively.

The Consolidated Financial Statements include the following amounts related to operating leases for the years ended December 31:

($ in millions)	2023		2022		2021
Consolidated Statements of Earnings and Comprehensive Income
Operating lease cost	$	23.9	$	22.6	$	21.5
Consolidated Statements of Cash Flows
Cash paid for amounts included in the measurement of operating lease liabilities	23.6		20.3		20.5
Right-of-use assets obtained in exchange for operating lease obligations	16.4		13.3		19.8

Short-term and variable lease cost and sublease income were immaterial for the years ended December 31, 2023, 2022 and 2021, respectively.

The weighted average remaining lease term and weighted average discount rate of our operating leases were as follows as of December 31:

	2023		2022
Weighted average remaining lease term	4.7 years		4.6 years
Weighted average discount rate	5.0	%	4.0	%

The following table presents the maturity of the Company’s operating lease liabilities as of December 31, 2023:

($ in millions)
2024	$	15.4
2025	12.8
2026	10.1
2027	7.2
2028	4.9
Thereafter	6.6
Total lease payments	57.0
Less: imputed interest	(5.9)
Total lease liabilities	$	51.1

As of December 31, 2023, the Company had no material leases that had not yet commenced.