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Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
Lessee Accounting
As of December 31, 2022 and 2021, operating ROU assets and lease liabilities were $21.1 and $21.0 ($5.4 of which was current), and $27.3 and $27.2 ($5.8 of which was current), respectively. The weighted-average remaining term for lease contracts was 4.4 years at December 31, 2022, with maturity dates ranging from January 2023 to June 2031. The weighted-average discount rate was 3.4% at December 31, 2022. ROU assets are classified as property, plant and equipment, net in the consolidated balance sheets.
We incurred $16.9, $12.1, and $11.1 of rental expense under operating leases for the years ended December 31, 2022, 2021 and 2020, respectively. Certain operating leases contain rent escalation clauses and lease concessions that require additional rental payments in the later years of the term. Rent expense for these types of leases is recognized on a straight-line basis over the minimum lease term. Adjustments for straight-line rental expense for the respective periods was not material and as such, the majority of expense recognized was reflected in cash used in operating activities for the respective periods. This expense consisted primarily of payments for base rent on building and equipment leases. Payments related to short-term lease costs and taxes and variable service charges on leased properties were immaterial. In addition, we have the right, but no obligation, to renew certain leases for various renewal terms.
The following table summarizes future minimum lease payments for non-cancelable operating leases as of December 31, 2022:
2023$6.6 
20246.0 
20255.0 
20262.8 
20270.7 
Thereafter (1)
0.7 
Total future minimum lease payments$21.8 
_______________
(1)As of December 31, 2022, future minimum lease payments for non-cancelable operating leases for periods subsequent to 2027 relate to four leased facilities.
Lessor Accounting
We lease equipment manufactured by Chart primarily through our Cryo-Lease program as sales-type and operating leases. As of December 31, 2022 and 2021, our short-term net investment in sales-type leases was $14.5 and $9.3, respectively and is included in other current assets in our consolidated balance sheets. Our long-term net investment in sales-type leases was $44.3 and $31.9 as of December 31, 2022 and 2021, respectively, and is included in other assets in our consolidated balance sheets. For sales-type leases, interest income was $2.4, $0.9 and $0.1 in the consolidated statements of income for the years ended December 31, 2022, 2021 and 2020, respectively.
Operating leases offered by Chart may include early termination options. At the end of a lease, a lessee generally has the option to either extend the lease, purchase the underlying equipment for a fixed price or return it to Chart. The lease agreements clearly define applicable return conditions and remedies for non-compliance to ensure that leased equipment will be in good operating condition upon return.
The following table represents sales from sales-type and operating leases:
December 31,
20222021
Sales-type leases$28.1 $46.5 
Operating leases4.1 2.4 
Total sales from leases$32.2 $48.9 
The following table represents scheduled payments for sales-type leases:
December 31, 2022
2023$15.1 
202415.1 
202515.0 
202612.0 
20275.6 
Thereafter40.8 
Total103.6 
Less: unearned income44.8 
Total$58.8 
The following table represents the cost of equipment leased to others:
December 31,
20222021
Equipment leased to others, cost$17.3 $13.6 
Less: accumulated depreciation3.1 2.1 
Equipment leased to others, net$14.2 $11.5 
The following table represents payments due for operating leases:
December 31, 2022
2023$0.5 
20240.1 
20250.1 
20260.1 
20270.1 
Thereafter— 
Total$0.9 
Leases Leases
Lessee Accounting
As of December 31, 2022 and 2021, operating ROU assets and lease liabilities were $21.1 and $21.0 ($5.4 of which was current), and $27.3 and $27.2 ($5.8 of which was current), respectively. The weighted-average remaining term for lease contracts was 4.4 years at December 31, 2022, with maturity dates ranging from January 2023 to June 2031. The weighted-average discount rate was 3.4% at December 31, 2022. ROU assets are classified as property, plant and equipment, net in the consolidated balance sheets.
We incurred $16.9, $12.1, and $11.1 of rental expense under operating leases for the years ended December 31, 2022, 2021 and 2020, respectively. Certain operating leases contain rent escalation clauses and lease concessions that require additional rental payments in the later years of the term. Rent expense for these types of leases is recognized on a straight-line basis over the minimum lease term. Adjustments for straight-line rental expense for the respective periods was not material and as such, the majority of expense recognized was reflected in cash used in operating activities for the respective periods. This expense consisted primarily of payments for base rent on building and equipment leases. Payments related to short-term lease costs and taxes and variable service charges on leased properties were immaterial. In addition, we have the right, but no obligation, to renew certain leases for various renewal terms.
The following table summarizes future minimum lease payments for non-cancelable operating leases as of December 31, 2022:
2023$6.6 
20246.0 
20255.0 
20262.8 
20270.7 
Thereafter (1)
0.7 
Total future minimum lease payments$21.8 
_______________
(1)As of December 31, 2022, future minimum lease payments for non-cancelable operating leases for periods subsequent to 2027 relate to four leased facilities.
Lessor Accounting
We lease equipment manufactured by Chart primarily through our Cryo-Lease program as sales-type and operating leases. As of December 31, 2022 and 2021, our short-term net investment in sales-type leases was $14.5 and $9.3, respectively and is included in other current assets in our consolidated balance sheets. Our long-term net investment in sales-type leases was $44.3 and $31.9 as of December 31, 2022 and 2021, respectively, and is included in other assets in our consolidated balance sheets. For sales-type leases, interest income was $2.4, $0.9 and $0.1 in the consolidated statements of income for the years ended December 31, 2022, 2021 and 2020, respectively.
Operating leases offered by Chart may include early termination options. At the end of a lease, a lessee generally has the option to either extend the lease, purchase the underlying equipment for a fixed price or return it to Chart. The lease agreements clearly define applicable return conditions and remedies for non-compliance to ensure that leased equipment will be in good operating condition upon return.
The following table represents sales from sales-type and operating leases:
December 31,
20222021
Sales-type leases$28.1 $46.5 
Operating leases4.1 2.4 
Total sales from leases$32.2 $48.9 
The following table represents scheduled payments for sales-type leases:
December 31, 2022
2023$15.1 
202415.1 
202515.0 
202612.0 
20275.6 
Thereafter40.8 
Total103.6 
Less: unearned income44.8 
Total$58.8 
The following table represents the cost of equipment leased to others:
December 31,
20222021
Equipment leased to others, cost$17.3 $13.6 
Less: accumulated depreciation3.1 2.1 
Equipment leased to others, net$14.2 $11.5 
The following table represents payments due for operating leases:
December 31, 2022
2023$0.5 
20240.1 
20250.1 
20260.1 
20270.1 
Thereafter— 
Total$0.9 
Leases Leases
Lessee Accounting
As of December 31, 2022 and 2021, operating ROU assets and lease liabilities were $21.1 and $21.0 ($5.4 of which was current), and $27.3 and $27.2 ($5.8 of which was current), respectively. The weighted-average remaining term for lease contracts was 4.4 years at December 31, 2022, with maturity dates ranging from January 2023 to June 2031. The weighted-average discount rate was 3.4% at December 31, 2022. ROU assets are classified as property, plant and equipment, net in the consolidated balance sheets.
We incurred $16.9, $12.1, and $11.1 of rental expense under operating leases for the years ended December 31, 2022, 2021 and 2020, respectively. Certain operating leases contain rent escalation clauses and lease concessions that require additional rental payments in the later years of the term. Rent expense for these types of leases is recognized on a straight-line basis over the minimum lease term. Adjustments for straight-line rental expense for the respective periods was not material and as such, the majority of expense recognized was reflected in cash used in operating activities for the respective periods. This expense consisted primarily of payments for base rent on building and equipment leases. Payments related to short-term lease costs and taxes and variable service charges on leased properties were immaterial. In addition, we have the right, but no obligation, to renew certain leases for various renewal terms.
The following table summarizes future minimum lease payments for non-cancelable operating leases as of December 31, 2022:
2023$6.6 
20246.0 
20255.0 
20262.8 
20270.7 
Thereafter (1)
0.7 
Total future minimum lease payments$21.8 
_______________
(1)As of December 31, 2022, future minimum lease payments for non-cancelable operating leases for periods subsequent to 2027 relate to four leased facilities.
Lessor Accounting
We lease equipment manufactured by Chart primarily through our Cryo-Lease program as sales-type and operating leases. As of December 31, 2022 and 2021, our short-term net investment in sales-type leases was $14.5 and $9.3, respectively and is included in other current assets in our consolidated balance sheets. Our long-term net investment in sales-type leases was $44.3 and $31.9 as of December 31, 2022 and 2021, respectively, and is included in other assets in our consolidated balance sheets. For sales-type leases, interest income was $2.4, $0.9 and $0.1 in the consolidated statements of income for the years ended December 31, 2022, 2021 and 2020, respectively.
Operating leases offered by Chart may include early termination options. At the end of a lease, a lessee generally has the option to either extend the lease, purchase the underlying equipment for a fixed price or return it to Chart. The lease agreements clearly define applicable return conditions and remedies for non-compliance to ensure that leased equipment will be in good operating condition upon return.
The following table represents sales from sales-type and operating leases:
December 31,
20222021
Sales-type leases$28.1 $46.5 
Operating leases4.1 2.4 
Total sales from leases$32.2 $48.9 
The following table represents scheduled payments for sales-type leases:
December 31, 2022
2023$15.1 
202415.1 
202515.0 
202612.0 
20275.6 
Thereafter40.8 
Total103.6 
Less: unearned income44.8 
Total$58.8 
The following table represents the cost of equipment leased to others:
December 31,
20222021
Equipment leased to others, cost$17.3 $13.6 
Less: accumulated depreciation3.1 2.1 
Equipment leased to others, net$14.2 $11.5 
The following table represents payments due for operating leases:
December 31, 2022
2023$0.5 
20240.1 
20250.1 
20260.1 
20270.1 
Thereafter— 
Total$0.9