Balance Sheet Information

12 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Information

Note 8: Balance Sheet Information

Certain significant amounts included in the Company's Consolidated Balance Sheets consist of the following (in millions):

	As of
	December 31, 2023		December 31, 2022
Inventories:
Raw materials	$	469.3	$	236.8
Work in process	1,221.1		951.0
Finished goods	421.4		429.0
	$	2,111.8	$	1,616.8
Property, plant and equipment, net:
Land	$	117.8	$	117.8
Buildings	1,324.2		1,056.2
Machinery, equipment and other	6,489.0		5,431.8
Property, plant and equipment, gross	7,931.0		6,605.8
Less: Accumulated depreciation	(3,529.5)		(3,155.1)
	$	4,401.5	$	3,450.7
Accrued expenses and other current liabilities:
Accrued payroll and related benefits	$	183.8	$	284.8
Amount due to EFK seller	—		236.3
Sales related reserves	108.3		209.9
Income taxes payable	37.4		34.8
Other (1)	333.7		281.5
	$	663.2	$	1,047.3

_______________________

(1)The current portion of operating lease liabilities is included in this amount. See discussion below.

Depreciation expense for property, plant and equipment totaled $485.3 million, $398.1 million and $436.5 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Included within sales related reserves are ship and credit reserves for distributors amounting to $74.3 million and $158.6 million as of December 31, 2023 and 2022, respectively.

Leases

Operating and financing lease arrangements are comprised primarily of real estate and equipment agreements. The Company's existing leases do not contain significant restrictive provisions or residual value guarantees; however, certain leases contain renewal options and provisions for payment of real estate taxes, insurance and maintenance costs by the Company.

The components of operating lease expense are as follows (in millions):

	Year Ended
	December 31, 2023		December 31, 2022		December 31, 2021
Operating lease	$	48.0	$	47.8	$	39.7
Variable lease	5.1		9.8		3.8
Short-term lease	1.7		2.6		2.0
Total lease expense	$	54.8	$	60.2	$	45.5

The operating lease liabilities included in the Consolidated Balance Sheets are as follows (in millions):

	As of
	December 31, 2023		December 31, 2022
Operating lease liabilities included in:
Accrued expenses and other current liabilities	$	33.0	$	35.2
Other long-term liabilities	231.0		246.5
Total	$	264.0	$	281.7
Operating ROU assets included in:
Other assets	$	247.3	$	262.1

As of December 31, 2023, the weighted-average remaining lease-terms and weighted-average discount rates were 11.0 years and 18.0 years, and 4.8% and 6.2%, for operating and financing leases, respectively.

As of December 31, 2023, there was an insignificant amount of commitments for operating leases that have not yet commenced. The reconciliation of the maturities of the operating and financing leases to the lease liabilities recorded in the Consolidated Balance Sheet as of December 31, 2023 is as follows (in millions):

	Operating Leases		Financing Leases
2024	$	43.0	$	1.7
2025	36.8		1.7
2026	30.8		1.7
2027	28.9		1.8
2028	23.6		1.8
Thereafter	188.8		31.0
Total lease payments	351.9		39.7
Less: Interest	(87.9)		(16.5)
Total lease liabilities	$	264.0	$	23.2