Leases

12 Months Ended

Dec. 31, 2023

The Company has commitments under operating leases for certain office facilities, warehouses, manufacturing plants, equipment (which includes both office and plant equipment) and vehicles used in its operations. Leases with an initial term of 12 months or less are not recorded on the balance sheet and 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 contain provisions for future rent increases or have rental payments that are adjusted periodically for inflation or based on usage. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company does not have any significant leases that have not yet commenced.

Supplemental balance sheet information related to leases as of December 31, 2023 and 2022 was as follows:


	Balance Sheet Caption	December 31, 2023		December 31, 2022
Right-of-Use (“ROU”) Assets:
Building ROU assets - net	Other noncurrent assets	$	110.7	$	104.4
Equipment ROU assets - net	Other noncurrent assets	7.6		5.6
Total ROU assets - net		$	118.3	$	110.0
Lease Liabilities:
Current lease liabilities	Accrued expenses	$	22.0	$	21.6
Noncurrent lease liabilities	Other noncurrent liabilities	98.1		96.6
Total lease liabilities		$	120.1	$	118.2

The components of lease cost for the years ended December 31, 2023, 2022 and 2021 were as follows:


	2023		2022		2021
Fixed lease cost (1)	$	33.0	$	30.8	$	31.5
Variable lease cost	2.7		2.3		2.3
Total lease expense	$	35.7	$	33.1	$	33.8

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

Supplemental cash flow information related to leases for the years ended December 31, 2023, 2022 and 2021 was as follows:


	2023		2022		2021
	(In millions)
Cash paid for amounts included in the measurement of lease liabilities	$	33.6	$	31.7	$	31.2
Right-of-use assets obtained in exchange for new lease liabilities	29.0		19.0		16.0

Other supplemental information related to leases as of December 31, 2023 and 2022 was as follows:


Lease Term and Discount Rate	December 31, 2023		December 31, 2022
Weighted-average remaining lease term (years):
Building and equipment	7.00		7.43
Vehicles	2.63		2.14
Weighted-average discount rate:
Building and equipment	3.71	%	3.41	%
Vehicles	3.43	%	1.70	%

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

Total lease liabilities at December 31, 2023 have scheduled maturities as follows:


Maturity of Lease Liabilities
2024	$	20.6
2025	23.3
2026	20.7
2027	15.9
2028	13.5
Thereafter	39.8
Total lease payments	133.8
Less: Imputed interest	(13.7)
Present value of lease liabilities	$	120.1