Leases

9 Months Ended

Sep. 30, 2023

NOTE 10. LEASES

During the first quarter of 2023, we entered into a new operating lease for a manufacturing facility within our Architectural Specialties segment which commenced during the second quarter. Upon commencement, we recognized an initial right-of-use ("ROU") asset and lease liability of $13.0 million based on an expected lease term of approximately 5 years. During the third quarter of 2023, we modified a lease for an existing manufacturing facility within our Architectural Specialties segment; upon modification we recognized an additional ROU asset and lease liability of $8.6 million based on a modified expected lease term of 13 years.

The following table presents supplemental cash flow information related to our leases:


	Nine Months Ended
	September 30,
	2023		2022
ROU assets obtained in exchange for lease liabilities
Operating leases	$	15.1	$	2.5
Finance leases (1)		12.3		-

(1)

The nine months ended September 30, 2023 include increases in ROU assets of $12.3 million resulting from modifications that did not involve obtaining a new ROU asset. Modifications resulted from contractual extensions of existing leases.

The following table presents the weighted-average discount rate assumption used to compute our ROU assets and lease liabilities:


	September 30, 2023			December 31, 2022
Weighted-average discount rate
Operating leases		4.9	%		3.8	%
Finance leases		4.6	%		3.7	%

Undiscounted future minimum lease payments as of September 2023, by year and in the aggregate, having non-cancelable lease terms in excess of one year are as follows:


	Operating Leases			Finance Leases
Maturity of lease liabilities
2023 (1)	$	3.1		$	1.4
2024		7.8			4.2
2025		6.2			4.0
2026		5.1			4.2
2027		5.0			4.4
Thereafter		6.0			16.8
Total lease payments		33.2			35.0
Less interest		(4.7	)		(7.8	)
Present value of lease liabilities	$	28.5		$	27.2

(1)

Scheduled maturities of lease liabilities represent the time period of October 1, 2023 to December 31, 2023.