Leases

12 Months Ended

Dec. 31, 2024

Leases

Leases

Note 10—Leases

Operating Leases

For the years ended December 31, 2024, 2023 and 2022, total operating lease cost was $156.2, $127.1, and $121.4, respectively, which include an immaterial amount of variable lease cost, and is recorded in Cost of sales and Selling, general and administrative expenses, dependent on the nature of the leased asset. Other than variable lease cost, operating lease cost is recognized on a straight-line basis over the lease term. The following summarizes (i) the future minimum undiscounted lease payments under non-cancelable operating leases for each of the next five years and thereafter, incorporating the practical expedient to account for lease and non-lease components as a single lease component for our existing real estate leases and (ii) a reconciliation of the undiscounted lease payments to the present value of the lease liabilities recognized, all as of December 31, 2024:

Year Ending December 31,
2025	$	121.1
2026		90.2
2027		65.4
2028		47.7
2029		31.4
Thereafter		93.1
Total future minimum lease payments	$	448.9
Less imputed interest		(54.8)
Total present value of future minimum lease payments	$	394.1

The following summarizes the operating lease-related account balances on our Consolidated Balance Sheets, as of December 31, 2024 and 2023:

	2024		2023
Operating lease right-of-use assets (included in Other long-term assets)	$	384.4	$	301.5
Other accrued expenses	$	108.5	$	91.6
Other long-term liabilities		285.6		212.1
Total operating lease liabilities	$	394.1	$	303.7

The following summarizes additional supplemental data related to our operating leases:

Year Ended December 31:	2024			2023			2022
Supplemental Cash Flow Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	141.0		$	114.3		$	109.3
Right-of-use assets obtained in exchange for lease liabilities	$	227.6		$	115.2		$	164.5
As of December 31:
Weighted Average Remaining Lease Term		6 years			5 years			5 years
Weighted Average Discount Rate		4.3	%		3.6	%		2.7	%

Lease contracts that we have executed but which have not yet commenced as of December 31, 2024 were not material, and are excluded from the tables above. The Company does not generally enter into leases involving the construction or design of the underlying asset, and nearly all of the assets we lease are not specialized in nature. Our lease agreements generally do not include residual value guarantees nor do we enter into sublease arrangements with external parties.

Finance Leases

In rare circumstances, the Company may enter into finance leases for specific equipment used in manufacturing, in which the Company takes ownership of the asset upon the end of the lease. The Company records its finance leases within Property, plant and equipment, net, Current portion of long-term debt and Long-term debt on the accompanying Consolidated Balance Sheets. The Company’s finance leases and related depreciation and interest expense, cash flows and impact on the Company’s consolidated financial statements were not material individually or in the aggregate as of and for the years ended December 31, 2024, 2023 and 2022.