Leases

9 Months Ended

Sep. 30, 2021

LEASES

The Company leases property and equipment under finance and operating leases. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments. Many of the Company's leases include rental escalation clauses, renewal options, and/or termination options that are factored into our determination of lease payments when appropriate. The Company does not separate lease and non-lease components contracts. The right-of-use assets are classified as non-current and included within the caption "Other noncurrent assets" on the consolidated balance sheets. The current portion of lease liabilities are classified under the caption "Other accrued liabilities," while the noncurrent portion of lease liabilities are classified under the caption "Other long term liabilities" on the consolidated balance sheets.

As most of the Company's leases do not provide a readily stated discount rate, the Company must estimate the rate to discount lease payments using its incremental borrowing rate. The Company has established discount rates by geographic region ranging from 1% to 9%.

The components of lease expense are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2021		2020		2021		2020
Operating lease expense	$	15.3	$	14.1	$	43.8	$	42.9
Finance lease expense amortization of leased assets	0.2		0.3		0.4		0.9

Short-term and variable lease expense	0.1		—		0.4		0.1
Sublease income	(0.1)		(0.1)		(0.3)		(0.3)
Total	$	15.5	$	14.3	$	44.3	$	43.6

Scheduled payments of lease liabilities are as follows:


In millions	Operating Leases		Finance Leases		Total
Remaining 2021	$	15.4	$	0.2	$	15.6
2022	58.1		0.8		58.9
2023	51.9		0.5		52.4
2024	46.9		0.3		47.2
2025	40.3		0.2		40.5
Thereafter	148.1		0.1		148.2
Total lease payments	360.7		2.1		362.8
Less: Present value discount	(29.2)		—		(29.2)
Present value of lease liabilities	$	331.5	$	2.1	$	333.6

The following table summarizes the remaining lease term and discount rate assumptions used to develop the present value of lease liabilities:


	September 30, 2021		December 31, 2020
Weighted-average remaining lease term (years)
Operating leases	8.1		7.4
Finance leases	3.5		4.5
Weighted-average discount rate
Operating leases	2.4	%	2.7	%
Finance leases	1.4	%	1.4	%

Leases

LEASES

The components of lease expense are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2021		2020		2021		2020
Operating lease expense	$	15.3	$	14.1	$	43.8	$	42.9
Finance lease expense amortization of leased assets	0.2		0.3		0.4		0.9

Short-term and variable lease expense	0.1		—		0.4		0.1
Sublease income	(0.1)		(0.1)		(0.3)		(0.3)
Total	$	15.5	$	14.3	$	44.3	$	43.6

Scheduled payments of lease liabilities are as follows:


In millions	Operating Leases		Finance Leases		Total
Remaining 2021	$	15.4	$	0.2	$	15.6
2022	58.1		0.8		58.9
2023	51.9		0.5		52.4
2024	46.9		0.3		47.2
2025	40.3		0.2		40.5
Thereafter	148.1		0.1		148.2
Total lease payments	360.7		2.1		362.8
Less: Present value discount	(29.2)		—		(29.2)
Present value of lease liabilities	$	331.5	$	2.1	$	333.6

The following table summarizes the remaining lease term and discount rate assumptions used to develop the present value of lease liabilities:


	September 30, 2021		December 31, 2020
Weighted-average remaining lease term (years)
Operating leases	8.1		7.4
Finance leases	3.5		4.5
Weighted-average discount rate
Operating leases	2.4	%	2.7	%
Finance leases	1.4	%	1.4	%