Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

7. Leases

The Company adopted ASC Topic 842, Leases as of January 1, 2019, using the transition method per ASU No. 2018-11 wherein entities were allowed to initially apply the new leases standard at adoption date. Adoption of ASC Topic 842 resulted in an increase to total assets and liabilities due to the recording of operating lease ROU assets and operating lease liabilities of approximately $163 million, as of January 1, 2019. The adoption did not materially impact the Company’s Consolidated Statements of Earnings or Cash Flows. See Note 1 — Description of Business and Summary of Significant Accounting Policies for further detail on ROU assets and lease liabilities.

The components of lease costs were as follows:

	Years Ended December 31,
	2021		2020		2019
Operating Lease Costs:
Fixed	$	54,397	$	52,875	$	52,317
Variable	6,281		5,973		6,584
Short-term	17,847		18,436		17,387
Total(1)	$	78,525	$	77,284	$	76,288

(1) Finance lease cost and sublease income were immaterial.

Supplemental cash flow information related to leases was as follows:

	Years Ended December 31,
	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	55,921	$	53,903	$	53,450
Operating cash flows for finance leases	357		434		425
Financing cash flows for finance leases	3,073		2,523		1,915
Total	$	59,351	$	56,860	$	55,790
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	47,666	$	21,381	$	41,598
Financing leases	2,016		3,708		1,542
Total	$	49,682	$	25,089	$	43,140

Supplemental balance sheet information related to leases were as follows:

	December 31, 2021		December 31, 2020
Operating Leases
Right-of-use assets:
Other assets and deferred charges	$	169,022	$	170,089
Lease liabilities:
Other accrued expenses	$	43,086	$	48,834
Other liabilities	134,448		133,989
Total operating lease liabilities	$	177,534	$	182,823
Finance Leases
Right-of-use assets:
Property, plant and equipment, net (1)	$	8,588	$	10,388
Lease liabilities:
Other accrued expenses	$	2,475	$	2,641
Other liabilities	6,767		8,709
Total financing lease liabilities	$	9,242	$	11,350

(1) Finance lease right-of-use assets are recorded net of accumulated depreciation of $7,675 and $7,205 for the years ended December 31, 2021 and December 31, 2020, respectively.

The aggregate future lease payments for operating and finance leases as of December 31, 2021 were as follows:

	Operating		Finance
2022	$	47,649	$	2,822
2023	35,713		2,372
2024	28,124		1,845
2025	23,756		1,433
2026	16,058		1,204
Thereafter	39,539		767
Total lease payments	190,839		10,443
Less interest	(13,305)		(1,201)
Present value of lease liabilities	$	177,534	$	9,242

Average lease terms and discount rates were as follows:

	December 31, 2021	December 31, 2020	December 31, 2019
Weighted-average remaining lease term (years)
Operating leases	5.8	5.9	5.9
Finance leases	4.2	4.8	5.9
Weighted-average discount rate
Operating leases	2.7%	2.9%	3.2%
Finance leases	3.4%	3.6%	4.1%

Leases

7. Leases

The Company adopted ASC Topic 842, Leases as of January 1, 2019, using the transition method per ASU No. 2018-11 wherein entities were allowed to initially apply the new leases standard at adoption date. Adoption of ASC Topic 842 resulted in an increase to total assets and liabilities due to the recording of operating lease ROU assets and operating lease liabilities of approximately $163 million, as of January 1, 2019. The adoption did not materially impact the Company’s Consolidated Statements of Earnings or Cash Flows. See Note 1 — Description of Business and Summary of Significant Accounting Policies for further detail on ROU assets and lease liabilities.

The components of lease costs were as follows:

	Years Ended December 31,
	2021		2020		2019
Operating Lease Costs:
Fixed	$	54,397	$	52,875	$	52,317
Variable	6,281		5,973		6,584
Short-term	17,847		18,436		17,387
Total(1)	$	78,525	$	77,284	$	76,288

(1) Finance lease cost and sublease income were immaterial.

Supplemental cash flow information related to leases was as follows:

	Years Ended December 31,
	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	55,921	$	53,903	$	53,450
Operating cash flows for finance leases	357		434		425
Financing cash flows for finance leases	3,073		2,523		1,915
Total	$	59,351	$	56,860	$	55,790
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	47,666	$	21,381	$	41,598
Financing leases	2,016		3,708		1,542
Total	$	49,682	$	25,089	$	43,140

Supplemental balance sheet information related to leases were as follows:

	December 31, 2021		December 31, 2020
Operating Leases
Right-of-use assets:
Other assets and deferred charges	$	169,022	$	170,089
Lease liabilities:
Other accrued expenses	$	43,086	$	48,834
Other liabilities	134,448		133,989
Total operating lease liabilities	$	177,534	$	182,823
Finance Leases
Right-of-use assets:
Property, plant and equipment, net (1)	$	8,588	$	10,388
Lease liabilities:
Other accrued expenses	$	2,475	$	2,641
Other liabilities	6,767		8,709
Total financing lease liabilities	$	9,242	$	11,350

(1) Finance lease right-of-use assets are recorded net of accumulated depreciation of $7,675 and $7,205 for the years ended December 31, 2021 and December 31, 2020, respectively.

The aggregate future lease payments for operating and finance leases as of December 31, 2021 were as follows:

	Operating		Finance
2022	$	47,649	$	2,822
2023	35,713		2,372
2024	28,124		1,845
2025	23,756		1,433
2026	16,058		1,204
Thereafter	39,539		767
Total lease payments	190,839		10,443
Less interest	(13,305)		(1,201)
Present value of lease liabilities	$	177,534	$	9,242

Average lease terms and discount rates were as follows:

	December 31, 2021	December 31, 2020	December 31, 2019
Weighted-average remaining lease term (years)
Operating leases	5.8	5.9	5.9
Finance leases	4.2	4.8	5.9
Weighted-average discount rate
Operating leases	2.7%	2.9%	3.2%
Finance leases	3.4%	3.6%	4.1%