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Leases

12 Months Ended

Dec. 31, 2023

Finance Leases

Amortization expense related to our finance lease right-of-use assets, which is primarily included in the “Cost of sales” line item of the consolidated statements of operations, was immaterial for each of the years ended December 31, 2023, 2022 and 2021. Interest expense related to our finance lease obligations, which is included in the “Interest expense, net” line item of the consolidated statements of operations, was immaterial for each of the years ended December 31, 2023, 2022 and 2021. Payments made on the principal portion of our finance lease obligations were immaterial for each of the years ended December 31, 2023, 2022 and 2021.

Operating Leases

We have operating leases primarily related to manufacturing and R&D facilities, as well as vehicles. Our expenses and payments for operating leases were as follows:


	Year Ended December 31,
(Dollars in millions)	2023		2022		2021
Operating leases expense	$	4.1	$	2.8	$	3.0
Short-term leases expense	$	0.7	$	0.6	$	0.3
Payments on operating lease obligations	$	4.0	$	3.1	$	2.8

Lease Balances in Statements of Financial Position

The assets and liabilities balances related to finance and operating leases reflected in the consolidated statements of financial position were as follows:


		As of December 31,
(Dollars in millions)	Financial Statement Line Item	2023		2022
Finance lease right-of-use assets	Property, plant and equipment, net	$	1.5	$	1.7
Operating lease right-of-use assets	Operating lease right-of-use assets	$	18.9	$	13.0

Finance lease obligations, current portion	Other accrued liabilities	$	0.4	$	0.5
Finance lease obligations, non-current portion	Other long-term liabilities	$	1.1	$	1.3
Total finance lease obligations		$	1.5	$	1.8

Operating lease obligations, current portion	Operating lease obligations, current portion	$	3.5	$	2.8
Operating lease obligations, non-current portion	Operating lease obligations, non-current portion	$	15.4	$	10.7
Total operating lease obligations		$	18.9	$	13.5

Net Future Minimum Lease Payments

The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of December 31, 2023:


	Finance						Operating
(Dollars in millions)	Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect		Leases Signed		Less: Leases Not Yet Commenced		Leases in Effect
2024	$	0.4	$	—	$	0.4	$	4.4	$	—	$	4.4
2025	0.4		—		0.4		3.9		(0.1)		3.8
2026	0.4		—		0.4		3.1		(0.1)		3.0
2027	0.2		—		0.2		2.6		—		2.6
2028	0.1		—		0.1		1.9		—		1.9
Thereafter	0.1		—		0.1		7.3		—		7.3
Total lease payments	1.6		—		1.6		23.2		(0.2)		23.0
Less: Interest	(0.1)		—		(0.1)		(4.1)		—		(4.1)
Present Value of Net Future Minimum Lease Payments	$	1.5	$	—	$	1.5	$	19.1	$	(0.2)	$	18.9

The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:


	2023	2022
Weighted Average Remaining Lease Term
Finance leases	4.0 years	4.6 years
Operating leases	7.0 years	6.5 years
Weighted Average Discount Rate
Finance leases	4.14%	3.89%
Operating leases	5.35%	5.24%

Leases