Leases

9 Months Ended

Sep. 30, 2023

NOTE 12 — LEASES

The Company primarily has operating and finance leases for branch facilities, corporate office, and certain equipment. The Company’s leases have remaining lease terms that range from less than one year to leases that mature through December 2037 and contain provisions to renew the leases for additional terms of up to twenty years.

At September 30, 2023 and December 31, 2022, assets recorded under finance leases, net of accumulated depreciation were $31.7 million and $19.0 million, respectively. The assets are depreciated over the lesser of their remaining lease terms or their estimated useful lives.

The components of lease expense were as follows:


	Three Months Ended September 30,					Nine Months Ended September 30,
	2023			2022		2023			2022
Operating lease expense	$	6.8		$	6.2	$	20.2		$	18.5
Short-term lease expense		0.9			1.3		3.8			3.0
Low-value lease expense		0.3			0.1		0.8			0.2
Variable lease expense		2.2			2.0		6.4			4.7
Finance lease expense:
Amortization of right-of-use assets		1.7			1.1		4.4			2.8
Interest on lease liabilities		0.6			0.3		1.7			0.7
Sublease income		(0.1	)		—		(0.2	)		(0.1	)
Total lease expense	$	12.4		$	11.0	$	37.1		$	29.8

Additional information related to leases is presented in the table below:


	Nine Months Ended September 30,
Supplemental Cash Flows Information	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	19.4	$	17.9
Operating cash flows for finance leases		1.7		0.7
Financing cash flows for finance leases		3.9		2.5
Non-cash right-of-use assets obtained in exchange for lease obligations:
Operating leases		4.9		14.5
Finance leases		17.3		7.8
Weighted Average Remaining Lease Term (in years):
Operating leases		9.0		6.9
Finance leases		4.7		4.5
Weighted Average Discount Rate (in %):
Operating leases		10.2		7.0
Finance leases		8.2		6.6

Minimum future lease payments under non-cancellable operating and finance leases described above as of September 30, 2023 were as follows:


Years	Operating Leases			Finance Leases
Remainder of 2023	$	6.3		$	2.2
2024		24.2			8.8
2025		20.9			8.6
2026		17.5			7.8
2027		16.1			6.2
Thereafter		89.4			5.7
Total future minimum lease payments		174.4			39.3
Less: imputed interest		(64.0	)		(6.5	)
Total	$	110.4		$	32.8


Amounts recognized in the Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022	September 30, 2023			December 31, 2022
Current portion of long-term debt	$	6.6		$	4.2
Current operating lease liabilities		15.4			14.8
Finance lease obligations, net of current portion		26.2			15.4
Long-term operating lease liabilities, net of current portion		95.0			101.9
Total	$	143.2		$	136.3

As of September 30, 2023, the Company had additional leases, substantially all real estate, that were executed but had not yet commenced with undiscounted lease payments of $3.2 million. These leases are expected to commence in 2023 with lease terms up to 10 years.

See Note 13, Contingencies, for more information on certain contracts where the Company guarantees the performance of the third-party lessee.