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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
We determine if an arrangement is a lease at inception. We have leases with terms up to 16 years primarily for corporate offices, research and development facilities, vehicles, and equipment, including some of which have options to extend and/or early-terminate the leases. We determine the lease term by assuming the exercise of any renewal and/or early-termination options that are reasonably assured.
Operating lease right-of-use assets are presented as other noncurrent assets in our consolidated balance sheets, and the current and long-term portions of operating lease liabilities are included in other current liabilities and other noncurrent liabilities, respectively, in our consolidated balance sheets. Short-term leases, which are deemed at inception to have a lease term of 12 months or less, are not recorded on the consolidated balance sheets.
Operating lease assets represent our right to use an underlying asset for the lease term, and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.
Lease expense for operating lease assets, which is recognized on a straight-line basis over the lease term, was $171.2 million, $148.8 million, and $159.4 million during the years ended December 31, 2023, 2022, and 2021, respectively. Variable lease payments, which represent non-lease components such as maintenance, insurance and taxes, and which vary due to changes in facts or circumstances occurring after the commencement date other than the passage of time, are expensed in the period in which the payment obligation is incurred and were not material during the years ended December 31, 2023, 2022, and 2021. Short-term lease expense was not material during the years ended December 31, 2023, 2022, and 2021.
Supplemental balance sheet information related to operating leases as of December 31, 2023 and 2022 was as follows:
20232022
Weighted-average remaining lease term9 years7 years
Weighted-average discount rate4.4 %3.6 %
Supplemental cash flow information related to operating leases during the years ended December 31, 2023, 2022, and 2021 was as follows:
202320222021
Operating cash flows from operating leases$171.0 $149.7 $156.7 
Right-of-use assets obtained in exchange for new operating lease liabilities590.0 155.4 163.5 
The right-of-use assets obtained in exchange for new operating lease liabilities in 2023 primarily related to the addition of our research and development facility in Boston, Massachusetts.
The annual minimum lease payments of our operating lease liabilities as of December 31, 2023 were as follows:
2024$197.0 
2025180.2 
2026153.9 
2027138.2 
2028108.1 
After 2028614.7 
Total lease payments1,392.1 
Less imputed interest284.8 
Total$1,107.4 
Finance leases are included in property and equipment, short-term borrowings and current maturities of long-term debt, and long-term debt in our consolidated balance sheets. Finance leases are not material to our consolidated financial statements.
Leases Leases
We determine if an arrangement is a lease at inception. We have leases with terms up to 16 years primarily for corporate offices, research and development facilities, vehicles, and equipment, including some of which have options to extend and/or early-terminate the leases. We determine the lease term by assuming the exercise of any renewal and/or early-termination options that are reasonably assured.
Operating lease right-of-use assets are presented as other noncurrent assets in our consolidated balance sheets, and the current and long-term portions of operating lease liabilities are included in other current liabilities and other noncurrent liabilities, respectively, in our consolidated balance sheets. Short-term leases, which are deemed at inception to have a lease term of 12 months or less, are not recorded on the consolidated balance sheets.
Operating lease assets represent our right to use an underlying asset for the lease term, and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.
Lease expense for operating lease assets, which is recognized on a straight-line basis over the lease term, was $171.2 million, $148.8 million, and $159.4 million during the years ended December 31, 2023, 2022, and 2021, respectively. Variable lease payments, which represent non-lease components such as maintenance, insurance and taxes, and which vary due to changes in facts or circumstances occurring after the commencement date other than the passage of time, are expensed in the period in which the payment obligation is incurred and were not material during the years ended December 31, 2023, 2022, and 2021. Short-term lease expense was not material during the years ended December 31, 2023, 2022, and 2021.
Supplemental balance sheet information related to operating leases as of December 31, 2023 and 2022 was as follows:
20232022
Weighted-average remaining lease term9 years7 years
Weighted-average discount rate4.4 %3.6 %
Supplemental cash flow information related to operating leases during the years ended December 31, 2023, 2022, and 2021 was as follows:
202320222021
Operating cash flows from operating leases$171.0 $149.7 $156.7 
Right-of-use assets obtained in exchange for new operating lease liabilities590.0 155.4 163.5 
The right-of-use assets obtained in exchange for new operating lease liabilities in 2023 primarily related to the addition of our research and development facility in Boston, Massachusetts.
The annual minimum lease payments of our operating lease liabilities as of December 31, 2023 were as follows:
2024$197.0 
2025180.2 
2026153.9 
2027138.2 
2028108.1 
After 2028614.7 
Total lease payments1,392.1 
Less imputed interest284.8 
Total$1,107.4 
Finance leases are included in property and equipment, short-term borrowings and current maturities of long-term debt, and long-term debt in our consolidated balance sheets. Finance leases are not material to our consolidated financial statements.