Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

Leases

A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. Lease payments included in the measurement of the lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise.

The components of lease expense were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2024		2023		2024		2023
Operating lease cost	$	6.1	$	4.8	$	11.7	$	10.7
Finance lease - amortization of right-of-use (ROU) assets	0.3		—		0.3		—
Short-term lease cost	0.6		1.2		1.1		2.5
Variable lease cost	1.9		1.3		3.8		3.0
Total lease cost	$	8.9	$	7.3	$	16.9	$	16.2

The following table summarizes the finance lease amounts in the Consolidated Balance Sheets:

	Finance Leases
($ in millions)	Balance Sheet Classification	June 30, 2024
ROU assets, net	Other noncurrent assets	$	31.0
Lease liabilities (current)	Other current liabilities	$	0.9
Lease liabilities (noncurrent)	Other long-term liabilities	$	2.4

Supplemental cash flow information related to leases were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2024		2023		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15.0	$	5.0	$	20.3	$	9.9
Financing cash flows from finance leases	$	22.9	$	—	$	22.9	$	—
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases	$	29.9	$	2.9	$	34.1	$	3.5
Finance Leases	$	24.3	$	—	$	24.3	$	—

As of June 30, 2024 and December 31, 2023, the weighted average remaining lease term for operating leases was 8.6 years and 9.8 years, respectively. As of June 30, 2024, the weighted average remaining lease term for finance leases was 7.6 years. As of December 31, 2023, finance leases were not material.

As of June 30, 2024 and December 31, 2023, the weighted average discount rate for operating leases was 3.96% and 3.55%, respectively. As of June 30, 2024, the weighted average discount rate for finance leases was 4.94%. As of December 31, 2023, finance leases were not material.

Maturities of operating lease liabilities were as follows:

($ in millions)	June 30,		December 31,
Year	2024		2023
2024 (remaining period as of)	$	12.1	$	20.9
2025	22.7		18.7
2026	19.8		15.7
2027	15.3		11.2
2028	13.8		9.5
Thereafter	36.2		42.1
	119.9		118.1
Less: imputed lease interest	(15.0)		(15.9)
Total lease liabilities	$	104.9	$	102.2

Maturities of finance lease liabilities were as follows:

($ in millions)	June 30,
Year	2024
2024 (remaining period as of)	$	0.4
2025	0.9
2026	0.9
2027	0.8
2028	0.5
Thereafter	0.1
	3.6
Less: imputed lease interest	(0.3)
Total lease liabilities	$	3.3

As of December 31, 2023, finance leases were not material.

Leases

Leases

A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. Lease payments included in the measurement of the lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise.

The components of lease expense were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2024		2023		2024		2023
Operating lease cost	$	6.1	$	4.8	$	11.7	$	10.7
Finance lease - amortization of right-of-use (ROU) assets	0.3		—		0.3		—
Short-term lease cost	0.6		1.2		1.1		2.5
Variable lease cost	1.9		1.3		3.8		3.0
Total lease cost	$	8.9	$	7.3	$	16.9	$	16.2

The following table summarizes the finance lease amounts in the Consolidated Balance Sheets:

	Finance Leases
($ in millions)	Balance Sheet Classification	June 30, 2024
ROU assets, net	Other noncurrent assets	$	31.0
Lease liabilities (current)	Other current liabilities	$	0.9
Lease liabilities (noncurrent)	Other long-term liabilities	$	2.4

Supplemental cash flow information related to leases were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2024		2023		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15.0	$	5.0	$	20.3	$	9.9
Financing cash flows from finance leases	$	22.9	$	—	$	22.9	$	—
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases	$	29.9	$	2.9	$	34.1	$	3.5
Finance Leases	$	24.3	$	—	$	24.3	$	—

As of June 30, 2024 and December 31, 2023, the weighted average remaining lease term for operating leases was 8.6 years and 9.8 years, respectively. As of June 30, 2024, the weighted average remaining lease term for finance leases was 7.6 years. As of December 31, 2023, finance leases were not material.

As of June 30, 2024 and December 31, 2023, the weighted average discount rate for operating leases was 3.96% and 3.55%, respectively. As of June 30, 2024, the weighted average discount rate for finance leases was 4.94%. As of December 31, 2023, finance leases were not material.

Maturities of operating lease liabilities were as follows:

($ in millions)	June 30,		December 31,
Year	2024		2023
2024 (remaining period as of)	$	12.1	$	20.9
2025	22.7		18.7
2026	19.8		15.7
2027	15.3		11.2
2028	13.8		9.5
Thereafter	36.2		42.1
	119.9		118.1
Less: imputed lease interest	(15.0)		(15.9)
Total lease liabilities	$	104.9	$	102.2

Maturities of finance lease liabilities were as follows:

($ in millions)	June 30,
Year	2024
2024 (remaining period as of)	$	0.4
2025	0.9
2026	0.9
2027	0.8
2028	0.5
Thereafter	0.1
	3.6
Less: imputed lease interest	(0.3)
Total lease liabilities	$	3.3

As of December 31, 2023, finance leases were not material.