Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

Our operating leases primarily consist of office space, certain manufacturing facilities, and vehicles. Our finance leases are not material. The term of our operating leases is generally 10 years or less, in some cases, with options to extend the term for up to 5 years, or options to terminate after one year without penalty. In general, our vehicle lease payments contain a monthly base rent payment which is adjusted based on changes to the LIBOR rate over the lease term. Certain other lease agreements contain variable payments related to a consumer price index or similar metric. Any change in payment amounts as a result of a change in a rate or index are considered variable lease payments and recognized as profit or loss when incurred.

Rent expense for operating leases in the Consolidated Statements of Income for the years ended December 31, 2023, December 31, 2022, and December 31, 2021 were $37.7 million, $35.7 million, and $34.1 million, respectively. Cash paid for operating leases for the year ended December 31, 2023 and December 31, 2022 were $34.8 million and $36.3 million reported as cash outflows from operating activities in the Consolidated Statements of Cash Flows. Right-of-use ("ROU") assets obtained in exchange for lease obligations for the year ended December 31, 2023 and December 31, 2022 were $79.8 million and $58.9 million, respectively, which includes $1.4 million and $7.4 million related to acquisitions in 2023 and 2022, respectively.

Amounts recognized for operating leases in the Consolidated Balance Sheets is as follows (in millions):

	December 31, 2023		December 31, 2022
Operating lease right-of-use assets	$	147.1	$	108.0
TOTAL ASSETS	$	147.1	$	108.0
Other accrued liabilities	$	30.6	$	30.5
Other non-current liabilities	118.8		84.9
TOTAL LIABILITIES	$	149.4	$	115.4

The weighted average remaining lease term as of December 31, 2023 and December 31, 2022 for operating leases were 4.8 and 5.5 years, respectively. The weighted average discount rate used to measure the ROU asset and lease liability for operating leases was 3.8% as of December 31, 2023 and 3.2% as of December 31, 2022.

Future maturities of our operating lease liabilities as of December 31, 2023 are as follows (in millions):

	2024	2025	2026	2027	2028	Thereafter	Total Payments	Imputed Interest	Total
Operating Leases	36.2	32.9	27.1	23.8	20.5	27.0	167.5	(18.1)	$149.4

Future maturities of our operating lease liabilities as of December 31, 2022 are as follows (in millions):

	2023	2024	2025	2026	2027	Thereafter	Total Payments	Imputed Interest	Total
Operating Leases	33.8	23.9	17.7	14.3	12.3	24.5	126.5	(11.1)	$115.4

Leases

Leases

Our operating leases primarily consist of office space, certain manufacturing facilities, and vehicles. Our finance leases are not material. The term of our operating leases is generally 10 years or less, in some cases, with options to extend the term for up to 5 years, or options to terminate after one year without penalty. In general, our vehicle lease payments contain a monthly base rent payment which is adjusted based on changes to the LIBOR rate over the lease term. Certain other lease agreements contain variable payments related to a consumer price index or similar metric. Any change in payment amounts as a result of a change in a rate or index are considered variable lease payments and recognized as profit or loss when incurred.

Rent expense for operating leases in the Consolidated Statements of Income for the years ended December 31, 2023, December 31, 2022, and December 31, 2021 were $37.7 million, $35.7 million, and $34.1 million, respectively. Cash paid for operating leases for the year ended December 31, 2023 and December 31, 2022 were $34.8 million and $36.3 million reported as cash outflows from operating activities in the Consolidated Statements of Cash Flows. Right-of-use ("ROU") assets obtained in exchange for lease obligations for the year ended December 31, 2023 and December 31, 2022 were $79.8 million and $58.9 million, respectively, which includes $1.4 million and $7.4 million related to acquisitions in 2023 and 2022, respectively.

Amounts recognized for operating leases in the Consolidated Balance Sheets is as follows (in millions):

	December 31, 2023		December 31, 2022
Operating lease right-of-use assets	$	147.1	$	108.0
TOTAL ASSETS	$	147.1	$	108.0
Other accrued liabilities	$	30.6	$	30.5
Other non-current liabilities	118.8		84.9
TOTAL LIABILITIES	$	149.4	$	115.4

The weighted average remaining lease term as of December 31, 2023 and December 31, 2022 for operating leases were 4.8 and 5.5 years, respectively. The weighted average discount rate used to measure the ROU asset and lease liability for operating leases was 3.8% as of December 31, 2023 and 3.2% as of December 31, 2022.

Future maturities of our operating lease liabilities as of December 31, 2023 are as follows (in millions):

	2024	2025	2026	2027	2028	Thereafter	Total Payments	Imputed Interest	Total
Operating Leases	36.2	32.9	27.1	23.8	20.5	27.0	167.5	(18.1)	$149.4

Future maturities of our operating lease liabilities as of December 31, 2022 are as follows (in millions):

	2023	2024	2025	2026	2027	Thereafter	Total Payments	Imputed Interest	Total
Operating Leases	33.8	23.9	17.7	14.3	12.3	24.5	126.5	(11.1)	$115.4