Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

LeasesThe 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.

Note 16 - Leases (Continued)

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

(Dollars in Millions)	Sep 30, 2022		Dec 31, 2021
Operating Lease Right-of-Use Assets	$	59.3	$	64.4
Operating Lease Liabilities	77.8		84.8

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.

	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2022		Sep 30, 2021		Sep 30, 2022		Sep 30, 2021
Lease Cost:
Amortization of Right-of-Use Assets - Finance Leases	$	—	$	0.2	$	—	$	0.1
Operating Lease Cost	17.2		16.8		5.8		5.8
Variable Lease Cost	0.2		0.1		0.1		—
Short-Term Lease Cost (1)	3.2		2.4		1.0		0.8
Total Lease Expense	$	20.6	$	19.5	$	6.9	6.7
Less: Sub-Lease Income	0.1		0.2		—		0.2
Total Lease Cost	$	20.5	$	19.3	$	6.9	$	6.5

(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 nine months ended September 30, 2022 and 2021 is as follows:

	Nine Months Ended
(Dollars in Millions)	Sep 30, 2022		Sep 30, 2021
Operating Cash Flows from Operating Lease (Fixed Payments)	$	19.1	$	17.5
Operating Cash Flows from Operating Lease (Liability Reduction)	17.1		15.6
Financing Cash Flows from Finance Leases	—		0.2
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities	10.1		19.4

Significant judgments and assumptions for determining lease asset and liability at September 30, 2022 and 2021 are presented below.

	Nine Months Ended
	Sep 30, 2022		Sep 30, 2021
Weighted-average Remaining Lease Term - Finance Leases	0.3 years		1.3 years
Weighted-average Remaining Lease Term - Operating Leases	5.6 years		6.5 years
Weighted-average Discount Rate - Finance Leases	0.6	%	0.6	%
Weighted-average Discount Rate - Operating Leases	3.4	%	3.3	%

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 16 - Leases (Continued)

Future minimum lease payments under operating leases at September 30, 2022 are presented below. There are no significant future minimum lease payments under finance leases.

(Dollars in Millions)
Remainder of 2022	$	6.4
2023	23.9
2024	17.8
2025	12.2
2026	5.8
2027 and Thereafter	21.1
Total Future Payments	$	87.2
Less Imputed Interest	9.4
Present Value of Minimum Lease Payments	$	77.8

Leases

LeasesThe 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.

Note 16 - Leases (Continued)

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

(Dollars in Millions)	Sep 30, 2022		Dec 31, 2021
Operating Lease Right-of-Use Assets	$	59.3	$	64.4
Operating Lease Liabilities	77.8		84.8

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.

	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2022		Sep 30, 2021		Sep 30, 2022		Sep 30, 2021
Lease Cost:
Amortization of Right-of-Use Assets - Finance Leases	$	—	$	0.2	$	—	$	0.1
Operating Lease Cost	17.2		16.8		5.8		5.8
Variable Lease Cost	0.2		0.1		0.1		—
Short-Term Lease Cost (1)	3.2		2.4		1.0		0.8
Total Lease Expense	$	20.6	$	19.5	$	6.9	6.7
Less: Sub-Lease Income	0.1		0.2		—		0.2
Total Lease Cost	$	20.5	$	19.3	$	6.9	$	6.5

(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 nine months ended September 30, 2022 and 2021 is as follows:

	Nine Months Ended
(Dollars in Millions)	Sep 30, 2022		Sep 30, 2021
Operating Cash Flows from Operating Lease (Fixed Payments)	$	19.1	$	17.5
Operating Cash Flows from Operating Lease (Liability Reduction)	17.1		15.6
Financing Cash Flows from Finance Leases	—		0.2
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities	10.1		19.4

Significant judgments and assumptions for determining lease asset and liability at September 30, 2022 and 2021 are presented below.

	Nine Months Ended
	Sep 30, 2022		Sep 30, 2021
Weighted-average Remaining Lease Term - Finance Leases	0.3 years		1.3 years
Weighted-average Remaining Lease Term - Operating Leases	5.6 years		6.5 years
Weighted-average Discount Rate - Finance Leases	0.6	%	0.6	%
Weighted-average Discount Rate - Operating Leases	3.4	%	3.3	%

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 16 - Leases (Continued)

Future minimum lease payments under operating leases at September 30, 2022 are presented below. There are no significant future minimum lease payments under finance leases.

(Dollars in Millions)
Remainder of 2022	$	6.4
2023	23.9
2024	17.8
2025	12.2
2026	5.8
2027 and Thereafter	21.1
Total Future Payments	$	87.2
Less Imputed Interest	9.4
Present Value of Minimum Lease Payments	$	77.8