Leases

9 Months Ended

Sep. 30, 2023

As of September 30, 2023, the Company leased certain automobiles and facilities for offices, laboratories, manufacturing, and warehousing, all of which were classified as operating leases. Certain of the Company’s operating leases include escalating rental payments, some include the option to extend for up to 10 years, and some include options to terminate the leases at certain times within the lease term. The Company also leases land and a manufacturing building in Malaysia, which are classified as finance leases. The Company has the option to purchase the property at any point after the completion of the construction of the leased building and is contractually obligated to purchase the property nine months after its completion. Because the Company is reasonably certain to purchase the property, the lease term of each finance lease equals the economic life of the underlying asset. While the building is still under construction, the lease commenced as the Company has obtained access to the building to construct improvements.

As of September 30, 2023, lease assets and lease liabilities were included in the following consolidated balance sheet accounts in the amounts shown:


(in millions)	September 30, 2023		December 31, 2022
Operating leases:
Operating lease asset:
Other assets	$	28.5	$	26.0
Operating lease liabilities:
Accrued expenses and other current liabilities	$	3.3	$	3.6
Other liabilities	30.2		27.4
Total operating lease liabilities	$	33.5	$	31.0
Finance leases:
Finance lease assets:
Property, plant and equipment, net	$	37.1	$	—
Finance lease liabilities:
Current portion of long-term debt and finance leases	$	22.1	$	—

The Company’s operating and financing lease cost was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Operating lease cost	$	2.3	$	2.6	$	6.4	$	6.5
Finance lease cost:
Amortization of leased assets	0.2		—		0.2		—
Interest on lease liabilities	0.3		—		0.3		—
Total finance lease cost	0.5		—		0.5		—
Total operating and financing lease cost	$	2.8	$	2.6	$	6.9	$	6.5

Supplemental cash flow information related to leases is as follows:


	Nine Months Ended September 30,
(in millions)	2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	4.3	$	3.3

Maturities of lease liabilities as of September 30, 2023 are as follows:


(in millions)
Years Ending December 31,	Operating Leases		Finance Lease (1)
2023	$	1.3	$	—
2024	5.6		23.2
2025	4.6		—
2026	2.8		—
2027	2.8		—
Thereafter	36.7		—
Total future minimum lease payments	53.8		23.2
Less: imputed interest	(20.3)		(1.1)
Present value of future minimum lease payments	$	33.5	$	22.1

(1) Excludes optional variable lease payments.

As of September 30, 2023, the weighted-average remaining lease term and weighted-average discount rate for leases were as follows:


	Operating Leases		Finance Leases
Weighted average remaining lease term	12.5 years		1 year
Weighted-average discount rate used to determine the operating lease liability	7.1	%	6.0	%

Leases