Leases

12 Months Ended

Dec. 31, 2021

LEASES

The Company leases office space, warehouses, vehicles, and equipment. Leases have remaining lease terms of 1 year to 20 years, some of which have renewal and termination options. Termination options are exercisable at the Company's option. The lease terms used to recognize right-of-use assets and lease liabilities include periods covered by options to extend the lease where the Company is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. The majority of our leases are operating leases. Finance leases are immaterial to our consolidated financial statements.

The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All other operating leases are recorded on the balance sheet with a corresponding operating lease asset, net, representing the right to use the underlying asset for the lease term and the operating lease liabilities representing the obligation to make lease payments arising from the lease. The Company's lease agreements do not contain any material residual value guarantees or restrictive covenants.

Operating lease assets and operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments is determined primarily using the incremental borrowing

rate, adjusted for lease term and foreign currency, based on the information available at lease commencement date. Lease agreements with lease and non-lease components are generally accounted for as a single lease component. The Company’s operating lease expense is recognized on a straight-line basis over the lease term.

Operating lease expense is as follows:


	Year Ended December 31, 2021		Year Ended December 31, 2020
Operating lease cost	$	56.3	$	53.3
Short-term and variable lease cost	23.0		25.3
Total lease cost	$	79.3	$	78.6

Supplemental cash flow information related to operating leases is as follows:


	Year Ended December 31, 2021		Year Ended December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$	55.6	$	53.3


Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	66.5	$	65.1

Supplemental balance sheet information(1) related to operating leases is as follows:


	Financial statement line item	December 31, 2021		December 31, 2020
Operating lease right-of-use assets	Other assets	$	152.9	$	145.8

Operating lease liabilities	Accrued expenses and other liabilities	$	42.1	$	42.3
Operating lease liabilities	Other long-term liabilities	113.6		107.3
Total lease liabilities		$	155.7	$	149.6

(1) For the year ended December 31, 2021, $2.0, $0.6, and $1.4 of operating lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities, respectively, associated with the Company's acquisition of E&I.

Weighted average remaining lease terms and discount rates for operating leases are as follows:


	December 31, 2021		December 31, 2020
Weighted Average Remaining Lease Term	5.5 years		4.5 years

Weighted Average Discount Rate	5.2	%	5.8	%

Maturities of lease liabilities at December 31, 2021 are as follows:


	December 31, 2021
	Operating Leases
2022	$	50.5
2023	41.5
2024	30.0
2025	18.7
2026	10.3
Thereafter	32.3
Total Lease Payments	183.3
Less: Imputed Interest	(27.6)
Present value of lease liabilities	$	155.7