Leases

3 Months Ended

Mar. 31, 2022

The Company leases certain office facilities, warehouses, manufacturing plants, equipment (which includes both office and plant equipment) and vehicles under operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Certain leases include one or more options to renew. The exercise of lease renewal options is at the Company’s sole discretion. The Company does not include renewal periods in any of the leases’ terms until the renewal is executed as they are generally not reasonably certain of being exercised. The Company does not have any material purchase options.

Certain of the Company’s lease agreements have rental payments that are adjusted periodically for inflation or that are based on usage. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to leases as of March 31, 2022 and December 31, 2021 was as follows:


	Balance Sheet Caption	March 31, 2022		December 31, 2021
Operating leases:
Building right-of-use assets - net	Other noncurrent assets	$	105.4	$	101.0
Equipment right-of-use assets - net	Other noncurrent assets	5.8		6.2
Total right-of-use assets - net		$	111.2	$	107.2
Operating leases:
Current lease liabilities	Accrued expenses	$	18.8	$	17.6
Noncurrent lease liabilities	Other noncurrent liabilities	96.6		93.4
Total lease liabilities		$	115.4	$	111.0

The components of lease cost for the three months ended March 31, 2022 and 2021 were as follows:


	Three Months Ended March 31,
		2022		2021
Operating lease cost (1)		$	7.4	$	7.4
Variable lease cost		0.4		0.6
Total lease expense		$	7.8	$	8.0

(1) Includes short-term leases, which are immaterial.

Supplemental cash flow information related to leases for the three months ended March 31, 2022 and 2021 was as follows:


	Three Months Ended March 31,
	2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	7.4	$	6.4
Right-of-use assets obtained in exchange for new operating lease liabilities	8.3		3.5

Other supplemental information related to leases as of March 31, 2022 and December 31, 2021 was as follows:


Lease Term and Discount Rate	March 31, 2022		December 31, 2021
Weighted-average remaining lease term (years):
Operating leases - building and equipment	8.12		8.50
Operating leases - vehicles	2.25		2.34
Weighted-average discount rate:
Operating leases - building and equipment	3.16	%	3.27	%
Operating leases - vehicles	1.02	%	1.08	%

The Company uses its incremental borrowing rate to determine the present value of the lease payments.

Total lease liabilities at March 31, 2022 have scheduled maturities as follows:


Maturity of Lease Liabilities	Operating Leases
2022 (excluding the three months ended March 31, 2022)	$	16.2
2023	20.1
2024	17.3
2025	15.3
2026	13.3
Thereafter	49.3
Total lease payments	131.5
Less: Imputed interest	(16.1)
Present value of lease liabilities	$	115.4