Leases (Notes)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lessee, Leases [Policy Text Block]

The Company determines if an arrangement is a lease at the inception of a signed agreement. Operating leases are included in Right of use (“ROU”) assets (long-term), Operating lease liabilities, short-term, and Operating lease liabilities, long-term on the Company’s Consolidated Balance Sheet. Finance leases are included in Property, plant and equipment, net, Current portion of long-term debt, and Long-term debt.

ROU assets represent the right of the Company to use an underlying asset for the length of the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

To determine the present value of lease payments, the Company uses its estimated incremental borrowing rate or the implicit rate, if readily determinable. The estimated incremental borrowing rate is based on information available at the lease commencement date, including any recent debt issuances and publicly available data for instruments with similar characteristics. The ROU asset also includes any lease payments made and excludes lease incentives.

The Company's lease terms may include options to extend or terminate the lease and, when it is reasonably certain that an option will be exercised, those options are included in the net present value calculation. Leases with a term of 12 months or less, which are primarily related to automobiles and manufacturing equipment, are not recorded on the balance sheet. The aggregate amount of lease cost for leases with a term of 12 months or less is not material.

The Company has lease agreements that include lease and non-lease components, which are generally accounted for separately. For certain leases (primarily related to IT equipment), the Company does account for the lease and non-lease components as a single lease component. A portfolio approach is applied to effectively account for the assets and liabilities for those specific leases referenced above. The Company does not have any material leases containing variable lease payments or residual value guarantees. The Company also does not have any material subleases.

The Company currently has operating and finance leases for items such as manufacturing facilities, corporate offices, manufacturing equipment, transportation equipment, and vehicles. Majority of the Company's active leases have remaining lease terms that range between less than one year to 18 years, some of which include options to extend the leases for up to 30 years, and some of which include options to terminate the leases within one year.

Lessee Disclosure [Abstract]

Lessee, Finance Leases

For the twelve months ended December 31, 2023, total net lease cost was $57.0. This was comprised of $14.6 of operating lease costs, $34.2 amortization of assets related to finance leases, and $8.2 interest on finance lease liabilities. For the twelve months ended December 31, 2022, total net lease cost was $54.3. This was comprised of $13.6 of operating lease costs, $33.6 amortization of assets related to finance leases, and $7.1 interest on finance lease liabilities. For the twelve months ended December 31, 2021, total net lease cost was $47.3. This was comprised of $11.5 of operating lease costs, $28.8 of amortization of assets related to finance leases, and $7.0 interest on finance lease liabilities.

Supplemental cash flow information related to leases was as follows:

	For the Twelve Months Ended		For the Twelve Months Ended
	December 31, 2023		December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	14.2	$	13.1
Operating cash flows from finance leases	$	8.2	$	7.1
Financing cash flows from finance leases	$	50.3	$	44.4
ROU assets obtained in exchange for lease obligations:
Operating leases	$	6.1	$	11.2

Supplemental balance sheet information related to leases:

	December 31, 2023		December 31, 2022
Finance leases:
Property and equipment, gross	$	336.9	$	295.4
Accumulated amortization	(135.8)		(103.4)
Property and equipment, net	$	201.1	$	192.0

The weighted average remaining lease term as of December 31, 2023 for operating and finance leases was 33.2 years and 4.7 years, respectively. The weighted average discount rate as of December 31, 2023 for operating and finance leases was 6.2% and 6.3%, respectively. See Note 16, Debt, for current and non-current finance lease obligations. The weighted average remaining lease term as of December 31, 2022 for operating and finance leases was 31.7 years and 5.3 years, respectively. The weighted average discount rate as of December 31, 2022 for operating and finance leases was 5.8% and 5.0%, respectively.

As of December 31, 2023, remaining maturities of lease liabilities were as follows:

	2024		2025		2026		2027		2028		2029 and thereafter		Total Lease Payments		Less: Imputed Interest		Total Lease Obligations
Operating Leases	$	14.6	$	14.4	$	12.0	$	9.5	$	8.7	$	174.1	$	233.3	$	(139.9)	$	93.4
Financing Leases	$	55.6	$	41.0	$	26.6	$	12.6	$	6.8	$	22.3	$	164.9	$	(21.6)	$	143.3

As of December 31, 2023, the Company had additional operating and financing lease commitments that have not yet commenced of approximately $0.1 and $18.1, respectively, for manufacturing equipment and facilities which are in various phases of construction or customization for the Company's ultimate use, with lease terms between 3 and 5 years. The Company's involvement in the construction and design process for these assets is generally limited to project management.

Lessee, Operating Leases

For the twelve months ended December 31, 2023, total net lease cost was $57.0. This was comprised of $14.6 of operating lease costs, $34.2 amortization of assets related to finance leases, and $8.2 interest on finance lease liabilities. For the twelve months ended December 31, 2022, total net lease cost was $54.3. This was comprised of $13.6 of operating lease costs, $33.6 amortization of assets related to finance leases, and $7.1 interest on finance lease liabilities. For the twelve months ended December 31, 2021, total net lease cost was $47.3. This was comprised of $11.5 of operating lease costs, $28.8 of amortization of assets related to finance leases, and $7.0 interest on finance lease liabilities.

Supplemental cash flow information related to leases was as follows:

	For the Twelve Months Ended		For the Twelve Months Ended
	December 31, 2023		December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	14.2	$	13.1
Operating cash flows from finance leases	$	8.2	$	7.1
Financing cash flows from finance leases	$	50.3	$	44.4
ROU assets obtained in exchange for lease obligations:
Operating leases	$	6.1	$	11.2

Supplemental balance sheet information related to leases:

	December 31, 2023		December 31, 2022
Finance leases:
Property and equipment, gross	$	336.9	$	295.4
Accumulated amortization	(135.8)		(103.4)
Property and equipment, net	$	201.1	$	192.0

The weighted average remaining lease term as of December 31, 2023 for operating and finance leases was 33.2 years and 4.7 years, respectively. The weighted average discount rate as of December 31, 2023 for operating and finance leases was 6.2% and 6.3%, respectively. See Note 16, Debt, for current and non-current finance lease obligations. The weighted average remaining lease term as of December 31, 2022 for operating and finance leases was 31.7 years and 5.3 years, respectively. The weighted average discount rate as of December 31, 2022 for operating and finance leases was 5.8% and 5.0%, respectively.

As of December 31, 2023, remaining maturities of lease liabilities were as follows:

	2024		2025		2026		2027		2028		2029 and thereafter		Total Lease Payments		Less: Imputed Interest		Total Lease Obligations
Operating Leases	$	14.6	$	14.4	$	12.0	$	9.5	$	8.7	$	174.1	$	233.3	$	(139.9)	$	93.4
Financing Leases	$	55.6	$	41.0	$	26.6	$	12.6	$	6.8	$	22.3	$	164.9	$	(21.6)	$	143.3

As of December 31, 2023, the Company had additional operating and financing lease commitments that have not yet commenced of approximately $0.1 and $18.1, respectively, for manufacturing equipment and facilities which are in various phases of construction or customization for the Company's ultimate use, with lease terms between 3 and 5 years. The Company's involvement in the construction and design process for these assets is generally limited to project management.