Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Leases

Our operating leases primarily consist of office space, certain manufacturing facilities, and vehicles. Our finance leases are not material. The term of our operating leases is generally 10 years or less, in some cases, with options to extend the term for up to 5 years, or options to terminate after one year without penalty. In general, our vehicle lease payments contain a monthly base rent payment which is adjusted based on changes to the LIBOR rate over the lease term. Certain other lease agreements contain variable payments related to a consumer price index or similar metric. Any change in payment amounts as a result of a change in a rate or index are considered variable lease payments and recognized as profit or loss when incurred.

Rent expense for operating leases in the Consolidated Statements of Income for the years ended December 31, 2021, December 31, 2020, and December 31, 2019 were $34.1 million, $35.5 million, and $37.0 million, respectively. Cash paid for operating leases for the year ended December 31, 2021 and December 31, 2020 were $36.7 million and $35.5 million reported as cash outflows from operating activities in the Consolidated Statements of Cash Flows. Right-of-use ("ROU") assets obtained in exchange for lease obligations for the year ended December 31, 2021 and December 31, 2020 were $17.8 million and $34.3 million, respectively, which includes $9.4 million related to 2020 acquisitions.

Amounts recognized for operating leases in the Consolidated Balance Sheets is as follows (in millions):

	December 31, 2021		December 31, 2020
Operating lease right-of-use assets	$	81.3	$	99.1
TOTAL ASSETS	$	81.3	$	99.1
Other accrued liabilities	$	27.1	$	30.6
Other non-current liabilities	58.3		71.9
TOTAL LIABILITIES	$	85.4	$	102.5

The weighted average remaining lease term as of December 31, 2021 and December 31, 2020 for operating leases were 4 years and 5 years, respectively. The weighted average discount rate used to measure the ROU asset and lease liability for operating leases was 2.7% as of December 31, 2021 and 3.1% as of December 31, 2020.

Future maturities of our operating lease liabilities as of December 31, 2021 are as follows (in millions):

	2022	2023	2024	2025	2026	Thereafter	Total Payments	Imputed Interest	Total
Operating Leases	29.0	22.9	13.6	8.8	6.4	9.2	89.9	(4.5)	$85.4

Future maturities of our operating lease liabilities as of December 31, 2020 are as follows (in millions):

	2021	2022	2023	2024	2025	Thereafter	Total Payments	Imputed Interest	Total
Operating Leases	33.1	24.1	18.7	11.9	8.2	13.9	109.9	(7.4)	$102.5

During 2021, we entered into two real estate lease agreements which are expected to commence during 2022. The aggregate lease payments for these facilities is approximately $46 million over 10 years and will be recognized using the applicable valuation inputs as of the commencement date.

Leases

Leases

Our operating leases primarily consist of office space, certain manufacturing facilities, and vehicles. Our finance leases are not material. The term of our operating leases is generally 10 years or less, in some cases, with options to extend the term for up to 5 years, or options to terminate after one year without penalty. In general, our vehicle lease payments contain a monthly base rent payment which is adjusted based on changes to the LIBOR rate over the lease term. Certain other lease agreements contain variable payments related to a consumer price index or similar metric. Any change in payment amounts as a result of a change in a rate or index are considered variable lease payments and recognized as profit or loss when incurred.

Rent expense for operating leases in the Consolidated Statements of Income for the years ended December 31, 2021, December 31, 2020, and December 31, 2019 were $34.1 million, $35.5 million, and $37.0 million, respectively. Cash paid for operating leases for the year ended December 31, 2021 and December 31, 2020 were $36.7 million and $35.5 million reported as cash outflows from operating activities in the Consolidated Statements of Cash Flows. Right-of-use ("ROU") assets obtained in exchange for lease obligations for the year ended December 31, 2021 and December 31, 2020 were $17.8 million and $34.3 million, respectively, which includes $9.4 million related to 2020 acquisitions.

Amounts recognized for operating leases in the Consolidated Balance Sheets is as follows (in millions):

	December 31, 2021		December 31, 2020
Operating lease right-of-use assets	$	81.3	$	99.1
TOTAL ASSETS	$	81.3	$	99.1
Other accrued liabilities	$	27.1	$	30.6
Other non-current liabilities	58.3		71.9
TOTAL LIABILITIES	$	85.4	$	102.5

The weighted average remaining lease term as of December 31, 2021 and December 31, 2020 for operating leases were 4 years and 5 years, respectively. The weighted average discount rate used to measure the ROU asset and lease liability for operating leases was 2.7% as of December 31, 2021 and 3.1% as of December 31, 2020.

Future maturities of our operating lease liabilities as of December 31, 2021 are as follows (in millions):

	2022	2023	2024	2025	2026	Thereafter	Total Payments	Imputed Interest	Total
Operating Leases	29.0	22.9	13.6	8.8	6.4	9.2	89.9	(4.5)	$85.4

Future maturities of our operating lease liabilities as of December 31, 2020 are as follows (in millions):

	2021	2022	2023	2024	2025	Thereafter	Total Payments	Imputed Interest	Total
Operating Leases	33.1	24.1	18.7	11.9	8.2	13.9	109.9	(7.4)	$102.5

During 2021, we entered into two real estate lease agreements which are expected to commence during 2022. The aggregate lease payments for these facilities is approximately $46 million over 10 years and will be recognized using the applicable valuation inputs as of the commencement date.