Leases

6 Months Ended

Jun. 27, 2021

The Company occupies offices and uses certain equipment under various operating lease arrangements. The Company has no finance leases. These leases have remaining lease terms of 1 to 18 years, some of which include options to extend lease terms or options to terminate current lease terms at certain times, subject to notice requirements set out in the lease agreement. Payments under certain of the lease agreements may be subject to adjustment based on a consumer price index or other inflationary indices. The lease liability for such lease agreements as of the adoption date, was based on fixed payments as of the adoption date. Any adjustments to these payments based on the related indices will be recorded to expense as incurred. Leases with an expected term of 12 months or less are not capitalized. Lease expense under such leases is recorded straight line over the life of the lease. The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate leases.

For the quarter and six months ended June 27, 2021, the Company's operating lease and other rental expenses were $22.5 million and $44.3 million, respectively. For the quarter and six months ended June 28, 2020, the Company's operating lease and other rental expenses were $22.4 million and $45.3 million, respectively. Expense related to short-term leases (expected terms less than 12 months) and variable lease payments was not material in the quarter or six months ended June 27, 2021 or June 28, 2020.

Information related to the Company’s leases for the quarter and six months ended June 27, 2021 and June 28, 2020 are as follows:


	Quarter Ended						Six Months Ended
	June 27, 2021			June 28, 2020			June 27, 2021			June 28, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	13.0		$	14.0		$	26.2		25.6
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	4.1		$	36.2		$	11.5		100.4

Weighted Average Remaining Lease Term
Operating leases	5.8 years			6.4 years			5.8 years			6.4 years
Weighted Average Discount Rate
Operating leases	3.1		%	3.1		%	3.1		%	3.1	%

The following is a reconciliation of future undiscounted cash flows to the operating liabilities, and the related right of use assets, included in our Consolidated Balance Sheets as of June 27, 2021:


	June 27, 2021
2021 (excluding the six months ended June 27, 2021)	$	25.5
2022	47.3
2023	39.1
2024	28.6
2025	23.3
2026 and thereafter	49.2
Total future lease payments	213.0
Less imputed interest	21.8
Present value of future operating lease payments	191.2
Less current portion of operating lease liabilities (1)	44.9
Non-current operating lease liability (2)	146.3
Operating lease right-of-use assets, net (3)	$	174.5

(1) Included in Accrued liabilities on the consolidated balance sheets.

(2) Included in Other liabilities on the consolidated balance sheets.

(3) Included in Property, plant, and equipment on the consolidated balance sheets.