Leases

12 Months Ended

Dec. 31, 2023

We lease facilities, vehicles, certain DRS devices, ATMs, computers and other equipment under long-term operating and financing leases with varying terms. Most of the leases contain renewal and/or purchase options, exercisable at our sole discretion. The renewal periods differ by asset class and by country and are included in our determination of lease term if we determine we are reasonably certain to exercise the option.

We have taken the component election for all material asset categories, except certain DRS devices. This election allows us to account for lease components (e.g., fixed payments or variable payments that depend on a rate that can be determined at commencement, including rent for the right to use the asset) together with non-lease components (e.g., other fixed payments that deliver a good or service including common-area maintenance costs) in the calculation of the right-of-use asset and corresponding liability. Variable costs, such as inflation adjusted payments for facilities, or non-lease components that vary periodically (included as part of the component election), are expensed as incurred.

Our leases do not contain any material residual value guarantees or material restrictive covenants.

The components of lease assets and liabilities were as follows:


		December 31,
(In millions)	Balance sheet classification	2023		2022
Assets:
Operating lease assets	Right-of-use assets, net	$	337.7	$	314.5
Finance lease assets	Property and equipment, net	283.7		217.9
Total leased assets		$	621.4	$	532.4

Liabilities:
Current:
Operating	Accrued liabilities	$	79.5	$	74.7
Financing	Current maturities of long-term debt	57.5		43.0
Noncurrent:
Operating	Lease liabilities	265.8		249.9
Financing	Long-term debt	176.3		149.2
Total lease liabilities		$	579.1	$	516.8

The components of lease expense were as follows:


	Years Ended December 31,
(In millions)	2023		2022		2021

Operating lease cost(a)	$	153.4	$	133.6	$	149.4
Short-term lease cost	25.5		28.9		21.2
Finance lease cost:
Amortization of related assets	44.5		37.9		38.3
Interest on related liabilities	14.0		10.1		9.5
Total lease cost	$	237.4	$	210.5	$	218.4

(a)Includes variable lease costs, which are immaterial.

Other information related to leases was as follows:


	Years Ended December 31,
(In millions, except for lease term and discount rate)	2023			2022			2021

Supplemental Cash Flows Information

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	107.9		$	106.1		$	96.5
Operating cash flows from finance leases	14.0			10.1			9.5
Financing cash flows from finance leases	55.5			48.2			43.0
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	104.3			101.0			54.0
Finance leases	92.0			65.7			85.9

Weighted Average Remaining Lease Term

Operating leases	6.5 years			6.3 years			6.7 years
Finance leases	4.7 years			4.7 years			4.8 years

Weighted Average Discount Rate

Operating leases	6.8		%	6.5		%	6.4		%
Finance leases	6.2		%	5.5		%	4.4		%

As of December 31, 2023, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:


(In millions)	Facilities		DRS Devices		Other	Total

2024	$	73.3	15.2		11.9	100.4
2025	59.0		11.2		8.0	78.2
2026	48.2		8.9		5.9	63.0
2027	38.8		5.8		3.5	48.1
2028	29.3		1.9		1.6	32.8
Later years	107.6		—		0.3	107.9
Total Lease Payments	$	356.2	43.0		31.2	430.4
Less: Interest	77.3		4.5		3.3	85.1
Present value of lease liabilities	$	278.9	$	38.5	27.9	345.3

As of December 31, 2023, minimum repayments of long-term debt under financing leases were as follows:


(In millions)

2024	$	69.7
2025	59.9
2026	47.5
2027	33.5
2028	21.7
Later years	38.7
Total Finance Lease Payments	$	271.0
Less: Interest	37.2
Present value of finance lease liabilities	$	233.8