Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Leases

The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from one to fifteen years, along with options that permit renewals for additional periods. The Company also leases certain equipment under non-cancelable operating leases, with initial terms typically ranging from one to five years. Minimum rent is expensed on a straight-line basis over the term of the lease.

The following table presents operating lease right-of-use assets and lease liabilities.

(Dollars in Millions)	Jun 30, 2021		Dec 31, 2020
Operating Lease Right-of-Use Assets	$	77.1	$	68.6
Operating Lease Liabilities	102.0		89.6

Note 14 - Leases (continued)

Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statement of Income. Additional information regarding the Company’s lease cost is presented below.

	Six Months Ended				Three Months Ended
(Dollars in Millions)	Jun 30, 2021		Jun 30, 2020		Jun 30, 2021		Jun 30, 2020
Lease Cost:
Amortization of Right-of-Use Assets - Finance Leases	$	0.1	$	0.2	$	—	$	0.1
Operating Lease Cost	11.0		10.8		5.9		5.2
Variable Lease Cost	$	0.1	$	—	$	0.1	$	—
Short-Term Lease Cost (1)	1.6		—		0.7		—
Total Lease Cost	$	12.8	$	11.0	$	6.7	5.3

(1) - Leases with an initial term of twelve months or less are not recorded on the Condensed Consolidated Balance Sheets.

Other Information on Operating Leases

Supplemental cash flow information related to the Company’s operating and finance leases for the six months ended June 30, 2021 and 2020 is as follows:

	Six Months Ended
(Dollars in Millions)	Jun 30, 2021		Jun 30, 2020
Operating Cash Flows from Operating Lease (Fixed Payments)	$	11.4	$	10.9
Operating Cash Flows from Operating Lease (Liability Reduction)	10.2		9.5
Financing Cash Flows from Finance Leases	0.1		0.2
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities	18.2		5.8

Significant judgments and assumptions for determining lease asset and liability at June 30, 2021 and 2020 are presented below.

	Six Months Ended
	Jun 30, 2021		Jun 30, 2020
Weighted-average Remaining Lease Term - Finance Leases	0.3 years		1.2 years
Weighted-average Remaining Lease Term - Operating Leases	6.6 years		6.8 years
Weighted-average Discount Rate - Finance Leases	4.0	%	4.0	%
Weighted-average Discount Rate - Operating Leases	3.4	%	3.8	%

Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments.

Note 14 - Leases (continued)

Future minimum lease payments under operating leases at June 30, 2021 are presented below. There are no significant future minimum lease payments under finance leases.

(Dollars in Millions)
Remainder of 2021	$	12.4
2022	23.7
2023	20.9
2024	15.2
2025	10.1
2026 and Thereafter	34.0
Total Future Payments	$	116.3
Less Imputed Interest	14.3
Present Value of Minimum Lease Payments	$	102.0

Leases

Leases

The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from one to fifteen years, along with options that permit renewals for additional periods. The Company also leases certain equipment under non-cancelable operating leases, with initial terms typically ranging from one to five years. Minimum rent is expensed on a straight-line basis over the term of the lease.

The following table presents operating lease right-of-use assets and lease liabilities.

(Dollars in Millions)	Jun 30, 2021		Dec 31, 2020
Operating Lease Right-of-Use Assets	$	77.1	$	68.6
Operating Lease Liabilities	102.0		89.6

Note 14 - Leases (continued)

Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statement of Income. Additional information regarding the Company’s lease cost is presented below.

	Six Months Ended				Three Months Ended
(Dollars in Millions)	Jun 30, 2021		Jun 30, 2020		Jun 30, 2021		Jun 30, 2020
Lease Cost:
Amortization of Right-of-Use Assets - Finance Leases	$	0.1	$	0.2	$	—	$	0.1
Operating Lease Cost	11.0		10.8		5.9		5.2
Variable Lease Cost	$	0.1	$	—	$	0.1	$	—
Short-Term Lease Cost (1)	1.6		—		0.7		—
Total Lease Cost	$	12.8	$	11.0	$	6.7	5.3

(1) - Leases with an initial term of twelve months or less are not recorded on the Condensed Consolidated Balance Sheets.

Other Information on Operating Leases

Supplemental cash flow information related to the Company’s operating and finance leases for the six months ended June 30, 2021 and 2020 is as follows:

	Six Months Ended
(Dollars in Millions)	Jun 30, 2021		Jun 30, 2020
Operating Cash Flows from Operating Lease (Fixed Payments)	$	11.4	$	10.9
Operating Cash Flows from Operating Lease (Liability Reduction)	10.2		9.5
Financing Cash Flows from Finance Leases	0.1		0.2
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities	18.2		5.8

Significant judgments and assumptions for determining lease asset and liability at June 30, 2021 and 2020 are presented below.

	Six Months Ended
	Jun 30, 2021		Jun 30, 2020
Weighted-average Remaining Lease Term - Finance Leases	0.3 years		1.2 years
Weighted-average Remaining Lease Term - Operating Leases	6.6 years		6.8 years
Weighted-average Discount Rate - Finance Leases	4.0	%	4.0	%
Weighted-average Discount Rate - Operating Leases	3.4	%	3.8	%

Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments.

Note 14 - Leases (continued)

Future minimum lease payments under operating leases at June 30, 2021 are presented below. There are no significant future minimum lease payments under finance leases.

(Dollars in Millions)
Remainder of 2021	$	12.4
2022	23.7
2023	20.9
2024	15.2
2025	10.1
2026 and Thereafter	34.0
Total Future Payments	$	116.3
Less Imputed Interest	14.3
Present Value of Minimum Lease Payments	$	102.0