Operating Leases

12 Months Ended

Dec. 31, 2023

Note 8. Operating Leases

We lease space under non-cancelable operating leases for several distribution centers, several manufacturing locations, and certain branch locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. We also lease certain semi-tractors, pick-up trucks, and computer equipment under operating leases.

Certain operating leases for pick-up trucks contain residual value guarantee provisions which would generally become due at the expiration of the operating lease agreement if the fair value of the leased vehicles is less than the guaranteed residual value. The aggregate residual value guarantee related to these leases was approximately $118.4. We believe the likelihood of funding the guarantee obligation under any provision of the operating lease agreements is remote.

The cost components of our operating leases were as follows for the periods ended December 31:


	2023				2022		2021
	Leased Facilities and Equipment		Leased Vehicles	Total	Leased Facilities and Equipment	Leased Vehicles	Total	Leased Facilities and Equipment	Leased Vehicles	Total
Operating lease cost	$	99.4	18.2	117.6	96.8	14.7	111.5	99.7	13.7	113.4
Variable lease cost	10.5		1.6	12.1	9.7	1.5	11.2	10.4	1.3	11.7
Short-term lease cost	—		23.7	23.7	—	26.6	26.6	—	19.2	19.2
Total	$	109.9	43.5	153.4	106.5	42.8	149.3	110.1	34.2	144.3

Variable lease costs are excluded from ROU assets and lease liabilities and consist primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities and equipment which are paid based on actual costs incurred by the lessor as well as variable mileage costs related to our leased vehicles.

Maturities of our lease liabilities for all operating leases were as follows as of December 31, 2023:


	Leased Facilities and Equipment		Leased Vehicles	Total
2024	$	86.1	14.2	100.3
2025	65.1		12.1	77.2
2026	43.3		8.9	52.2
2027	26.5		5.1	31.6
2028	14.7		3.1	17.8
2029 and thereafter	13.0		1.5	14.5
Total lease payments	$	248.7	44.9	293.6
Less: Imputed interest	(15.2)		(3.4)	(18.6)
Present value of lease liabilities	$	233.5	41.5	275.0

The weighted average remaining lease terms and discount rates for all of our operating leases were as follows for the periods ended December 31:


Remaining lease term and discount rate:	2023	2022
Weighted average remaining lease term (years)
Leased facilities and equipment	3.76	3.57
Leased vehicles	3.77	2.66
Weighted average discount rate
Lease facilities and equipment	3.07%	2.07%
Leased vehicles	4.03%	2.47%

Supplemental cash flow information related to our operating leases was as follows for the periods ended December 31:


	2023		2022	2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	115.7	110.9	112.4
Leased assets obtained in exchange for new operating lease liabilities	116.2		89.4	103.6