Substantially all of the Company's operating lease right-of-use assets and operating lease liabilities represent real estate leases for office space used to conduct the Company's business that expire on various dates through 2041. Leases generally contain renewal options and escalation clauses based upon increases in the lessors’ operating expenses and other charges. The Company anticipates that most of these leases will be renewed or replaced upon expiration, although not necessarily for the same amount of space.

The Company assesses at inception of a contract if it contains a lease. This assessment is based on: (i) whether the contract involves the use of a distinct identified asset; (ii) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the period; and (iii) whether the Company has the right to direct the use of the asset.

The right-of-use asset is initially measured at cost, which is primarily composed of the initial lease liability, plus any initial direct costs incurred, less any lease incentives received. The lease liability is initially measured at the present value of the minimum lease payments through the term of the lease. Minimum lease payments are discounted to present value using the incremental borrowing rate at the lease commencement date, which approximates the rate of interest the Company expects to pay on a secured borrowing in an amount equal to the lease payments for the underlying asset under similar terms and economic conditions. The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a total term of 12 months or less. The effect of short-term leases on the Company's right-of-use asset and lease liability would not be significant.

The balances and classification of operating lease right-of-use assets and operating lease liabilities within the Condensed Consolidated Balance Sheet is as follows:


(in millions)		September 30, 2023		December 31, 2022
Assets:
Operating lease right-of-use assets	Operating lease assets	$	198.0	$	214.9
Total assets			198.0		214.9
Liabilities:
Current operating lease liabilities	Accrued expenses and other liabilities		45.4		45.0
Non-current operating lease liabilities	Operating lease liabilities		178.9		195.9
Total liabilities		$	224.3	$	240.9

As of September 30, 2023, the Company has entered into future lease agreements expected to commence later in 2023 consisting of undiscounted lease liabilities of $9.9 million.

Lease expense for operating leases consists of the lease payments, inclusive of lease incentives, plus any initial direct costs, and is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability. Variable lease cost is lease payments that are based on an index or similar rate. They are initially measured using the index or rate in effect at lease commencement and are based on the minimum payments stated in the lease. Additional payments based on the change in an index or rate, or payments based on a change in the Company's portion of the operating expenses, including real estate taxes and insurance, are recorded as a period expense when incurred.

The components of lease cost for operating leases for the three and nine months ended September 30, 2023 and 2022 were:


	Three months ended September 30,						Nine months ended September 30,
(in millions)	2023			2022			2023			2022
Operating leases:
Lease cost	$	14.1		$	14.5		$	42.7		$	40.8
Variable lease cost		1.2			1.0			3.4			3.2
Short-term lease cost		0.1			0.4			0.3			0.9
Operating lease cost	$	15.4		$	15.9		$	46.4		$	44.9
Sublease income		(0.2	)		(0.4	)		(1.0	)		(1.2	)
Total lease cost net	$	15.2		$	15.5		$	45.4		$	43.7

Maturities of the operating lease liabilities by fiscal year at September 30, 2023 for the Company's operating leases are as follows:


(in millions)	Operating leases
2023 (Remainder)	$	10.3
2024		54.4
2025		47.4
2026		36.4
2027		29.5
Thereafter		69.6
Total undiscounted lease payments		247.6
Less: imputed interest		23.3
Present value of lease payments	$	224.3

Supplemental cash flow information for operating leases for the three and nine months ended September 30, 2023 and 2022:


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Cash paid for amounts included in measurement of liabilities
Operating cash flows from operating leases	$	15.0	$	16.1	$	44.8	$	43.9
Right-of-use assets obtained in exchange for new operating liabilities	$	5.7	$	8.4	$	15.5	$	35.9