Leases

12 Months Ended

Dec. 31, 2023

LEASES

The Company has operating leases for office space, warehouses, distribution centers, research and development and manufacturing facilities, equipment and vehicles. Many leases include one or more options to renew, some of which include options to extend the lease for up to 20 years and some leases include options to terminate the lease within 30 days. The Company regularly evaluates the renewal options and, when the options are reasonably certain of being exercised, they are included in the lease term. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for common area maintenance, utilities, inflation and/or changes in other indexes. The Company has elected to combine lease and non-lease components for leases of all asset classes where the Company is the lessee. At inception, the Company determines whether an agreement represents a lease and, at commencement, evaluates each lease agreement to determine whether the lease is an operating or finance lease.

Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for leased facilities and vehicles, which are paid based on actual costs incurred.

The components of operating lease expense for the years ended December 31 were as follows ($ in millions):


	2023		2022
Fixed operating lease expense (a)	$	34.2	$	31.7
Variable operating lease expense	7.7		7.2
Total operating lease expense	$	41.9	$	38.9

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(a) Includes short-term leases and sublease income, both of which were not significant.

The following table presents the weighted average remaining lease term and weighted average discount rates related to the Company’s operating leases as of December 31:


	2023		2022
Weighted average remaining lease term	7 years		8 years
Weighted average discount rate	4.1	%	4.1	%

The following table presents the maturity of the Company’s operating lease liabilities as of December 31, 2023

($ in millions):



2024	$	34.3
2025	29.3
2026	24.5
2027	19.8
2028	11.3
Thereafter	39.6
Total operating lease payments	158.8
Less: imputed interest	(18.6)
Total operating lease liabilities	$	140.2

As of December 31, 2023, the Company had no additional significant operating or finance leases that had not yet commenced.