Leases

3 Months Ended

Mar. 27, 2022

The Company occupies offices and uses certain equipment under various operating lease arrangements. The Company has no material finance leases. These leases have remaining lease terms of 1 to 17 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.

The rent expense under such arrangements and similar arrangements that do not qualify as leases under ASU 2016-02, net of sublease income amounted to $22.3 million and $21.8 million for the quarters ended March 27, 2022 and March 28, 2021, respectively, and was not material to the Company's financial statements nor were expenses related to short-term leases (expected terms less than 12 months) or variable lease payments was not material in the quarters ended March 27, 2022 or March 28, 2021.

Information related to the Company’s leases for the quarters ended March 27, 2022 and March 28, 2021 are as follows:


	Quarter Ended
	March 27, 2022			March 28, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	13.4		$	13.2
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	9.1		$	7.3

Weighted Average Remaining Lease Term
Operating leases	5.4 years			5.9 years
Weighted Average Discount Rate
Operating leases	2.9		%	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 March 27, 2022:


	March 27, 2022
2022 (excluding the three months ended March 27, 2022)	$	38.5
2023	44.3
2024	31.9
2025	26.1
2026	20.3
2027 and thereafter	33.4
Total future lease payments	194.5
Less imputed interest	21.2
Present value of future operating lease payments	173.3
Less current portion of operating lease liabilities (1)	45.0
Non-current operating lease liability (2)	128.3
Operating lease right-of-use assets, net (3)	$	156.7

(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.