Leases

12 Months Ended

Dec. 31, 2023

The Company leases certain manufacturing facilities, warehouses, office space, railcars and equipment. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheet. All recorded leases are classified as operating leases and lease expense is recognized on a straight-line basis over the lease term. For leases beginning in 2019, lease components (base rental costs) are accounted for separately from the nonlease components (e.g., common-area maintenance costs). For leases that do not provide an implicit rate, the Company uses its estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

A summary of the Company’s lease information is as follows:


		December 31,			December 31,
	Classification	2023			2022
Assets
Right of use assets	Other Assets	$	186.0		$	162.6

Liabilities
Current lease liabilities	Accrued and Other Liabilities	$	24.7		$	21.9
Long-term lease liabilities	Deferred and Other Long-term Liabilities		174.9			151.9
Total lease liabilities		$	199.6		$	173.8

Other information
Weighted-average remaining lease term (years)			8.1			8.9
Weighted-average discount rate			4.5	%		4.4	%


	Twelve Months		Twelve Months		Twelve Months
	Ended		Ended		Ended
	December 31, 2023		December 31, 2022		December 31, 2021
Statement of Income
Lease cost(1)	$	31.7	$	31.0	$	32.7


	Twelve Months		Twelve Months
	Ended		Ended
	December 31, 2023		December 31, 2022
Other information
Leased assets obtained in exchange for new lease liabilities(2)	$	47.2	$	27.9
Cash paid for amounts included in the measurement of lease liabilities	$	30.9	$	31.4

(1)

Lease expense is included in cost of sales or SG&A expenses based on the nature of the leased item. Short-term lease expense is excluded from this amount and is not material. The Company also has certain variable leases which are not material. The noncash component of lease expense for the twelve months ended December 31, 2023, 2022 and 2021 was $24.3, $24.0 and $25.4, respectively, is included in the amortization caption in the consolidated statement of cash flows.

(2)

Leased assets obtained in exchange for new lease liabilities in 2023 consisted of $40.9 of real estate lease additions and $6.3 of equipment lease additions, net of modifications. These additions included $36.9 for an agreement between the Company and a third-party warehouse provider for warehouse space. Leased assets obtained in exchange for new lease liabilities in 2022 primarily consisted of a contract amendment to one of the Company's international locations, which resulted in an increase to the Company’s right of use assets and corresponding lease liabilities of approximately $8.2 recorded in the third quarter of 2022, and an amendment to its contract at one of its leased manufacturing facilities, which resulted in an increase to the Company’s right of use assets and corresponding lease liabilities of approximately $15.2 recorded in the second quarter of 2022.

The Company’s minimum annual rentals including reasonably assured renewal options under lease agreements are as follows:


	Operating
	Leases
2024	$	32.7
2025		35.3
2026		26.9
2027		25.6
2028		23.1
2029 and thereafter		98.5
Total future minimum lease commitments		242.1
Less: Imputed interest		(42.5	)
Present value of lease liabilities	$	199.6