Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Leases

White Mountains has entered into lease agreements, primarily for office space. These leases are classified as operating leases, with lease expense recognized on a straight-line basis over the term of the lease. Lease incentives, such as free rent or landlord reimbursements for leasehold improvements, are recognized at lease inception and amortized on a straight-line basis over the term of the lease. Lease expense and the amortization of leasehold improvements are recognized within general and administrative expenses. Lease payments related to options to extend or renew the lease term are excluded from the calculation of lease liabilities unless White Mountains is reasonably certain of exercising those options.

As of December 31, 2022 and 2021, the right-of-use (“ROU”) asset was $25.2 million and $28.1 million and lease liabilities were $27.1 million and $30.0 million.

The following table summarizes net lease expense recognized in White Mountains’s consolidated statement of operations for the years ended December 31, 2022 and 2021:

	December 31,
Millions	2022		2021
Lease cost	$	8.0	$	6.7
Less: sublease income	.7		.4
Net lease cost	$	7.3	$	6.3

The following table presents the contractual maturities of the lease liabilities associated with White Mountains’s operating lease agreements as of December 31, 2022:

Millions	December 31, 2022
2023	$	8.7
2024	7.6
2025	5.1
2026	2.8
2027	1.6
Thereafter	3.9
Total undiscounted lease payments	29.7
Less: present value adjustment	(2.6)
Operating lease liability	$	27.1

The following table presents lease related assets and liabilities by reportable segment as of December 31, 2022 and 2021:

	As of December 31, 2022
$ in Millions	HG/BAM		Ark		Kudu		Other Operations		Total		Weighted Average Incremental Borrowing Rate (1)
ROU lease asset	$	5.7	$	6.6	$	5.8	$	7.1	$	25.2	4.1%
Lease liability	$	6.2	$	6.6	$	6.5	$	7.8	$	27.1

(1) The present value of the remaining lease payments was determined by discounting the lease payments using the incremental borrowing rate.

	As of December 31, 2021
$ in Millions	HG/BAM		Ark		Kudu		Other Operations		Total		Weighted Average Incremental Borrowing Rate (1)
ROU lease asset	$	7.6	$	7.0	$	6.4	$	7.1	28.1		4.0%
Lease liability	$	8.1	$	7.0	$	7.1	$	7.8	$	30.0

(1) The present value of the remaining lease payments was determined by discounting the lease payments using the incremental borrowing rate.