Leases

12 Months Ended

Dec. 31, 2023

7. LEASES

We have operating and finance leases for corporate offices, warehouse buildings, sales offices, branch locations, vehicles, and certain equipment. Our leases have remaining lease terms of one to ten years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases within one year. In addition to fixed lease payments, we incur variable lease charges that are recognized as incurred. These charges are primarily for maintenance and real estate taxes on leased facilities.

The components of the lease expense for the years ended December 31, 2023, 2022, and 2021 were as follows:



	For the Years Ended December 31,
	2023		2022		2021
Operating lease cost	$	58.4	$	43.8		$	38.4
Finance lease cost:
Amortization of right-of-use assets		1.5		1.9			2.0
Interest on lease liabilities		0.3		0.4			0.5
Total finance lease cost		1.8		2.3			2.5
Variable lease cost		15.3		12.4			10.5
Total lease cost	$	75.5	$	58.5		$	51.4

Supplemental balance sheet information at December 31, 2023 and 2022 related to leases was as follows:



	December 31,
	2023		2022
Operating leases:
Operating lease right-of-use assets	$	216.8	$	175.3
Favorable lease interests, net		2.4		0.7
Total operating lease right-of-use assets	$	219.2	$	176.0

Current operating lease liabilities	$	51.9	$	43.9
Non-current operating lease liabilities		183.4		147.1
Total operating lease liabilities	$	235.3	$	191.0

Finance leases:
Property, at cost	$	13.4	$	12.8
Accumulated depreciation and amortization		(9.8)		(8.6)
Net property	$	3.6	$	4.2

Current obligations of finance leases	$	1.9	$	1.6
Finance leases, net of current obligations		2.8		3.9
Total finance lease liabilities	$	4.7	$	5.5

Weighted average remaining lease term:
Operating leases		5.0 years		5.5 years
Finance leases		2.9 years		3.6 years
Weighted average discount rate:
Operating leases		4.2%		3.2%
Finance leases		7.4%		7.3%

Supplemental cash flow and other information for the years ended December 31, 2023, 2022, and 2021 related to leases was as follows:



	For the Years Ended December 31,
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	57.9	$	42.6		$	39.0
Operating cash flows from finance leases		0.3		0.4			0.5
Financing cash flows from finance leases		1.8		2.1			2.3

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases^(A)	$	92.5	$	82.1		$	54.7
Finance leases		1.0		1.5			0.4

^(A) Includes $20.5 million, $2.9 million, and $15.8 million of operating leases established as a result of our acquisitions during 2023, 2022 and 2021, respectively. See Note 17, “Acquisitions”, for further information.

Future minimum lease payments under non-cancellable leases as of December 31, 2023, were as follows:



	December 31, 2023
	Operating ‎Leases		Finance ‎Leases
Future minimum lease payments
2024	$	60.5	$	2.1
2025		55.6		1.6
2026		47.1		0.8
2027		39.3		0.4
2028		27.4		0.3
Thereafter		32.1		0.1
Total future minimum lease payments	$	262.0	$	5.3
Less: imputed interest		(26.7)		(0.6)
Total lease obligation	$	235.3	$	4.7
Less: current obligations		(51.9)		(1.9)
Long-term lease obligation	$	183.4	$	2.8