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Leases
3 Months Ended
Mar. 31, 2023
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)Mar 31,
2023
Dec 31,
2022
Operating Lease Right-of-Use Assets$40.0 $45.1 
Operating Lease Liabilities68.5 72.6 
Note 17 - Leases (Continued)
Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statements of Loss. Additional information regarding the Company’s lease cost is presented below.
 Three Months Ended
(Dollars in Millions)Mar 31,
2023
Mar 31,
2022
Lease Cost:
Operating Lease Cost$4.1 $5.6 
Variable Lease Cost0.1 0.1 
Short-Term Lease Cost (1)— 1.2 
Total Lease Expense$4.2 $6.9 
Less: Sub-Lease Income— 0.1 
Total Lease Cost$4.2 $6.8 
(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 leases for the three months ended March 31, 2023 and 2022 is as follows:
 Three Months Ended
(Dollars in Millions)Mar 31,
2023
Mar 31,
2022
Operating Cash Flows from Operating Lease (Fixed Payments)$6.1 $6.2 
Operating Cash Flows from Operating Lease (Liability Reduction)5.5 5.5 
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities1.4 1.0 
As of March 31, 2023, the Company does not have any finance leases.
Significant judgments and assumptions for determining lease asset and liability at March 31, 2023 and 2022 are presented below.
Three Months Ended
Mar 31,
2023
Mar 31,
2022
Weighted-average Remaining Lease Term - Finance LeasesN/A0.8 years
Weighted-average Remaining Lease Term - Operating Leases5.6 years5.8 years
Weighted-average Discount Rate - Finance LeasesN/A0.6 %
Weighted-average Discount Rate - Operating Leases3.6 %3.4 %
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 17 - Leases (Continued)
Future minimum lease payments under operating leases at March 31, 2023 are presented below. There are no significant future minimum lease payments under finance leases.
(Dollars in Millions)
Remainder of 2023$17.3 
202417.6 
202513.0 
20266.5 
20274.2 
2028 and Thereafter17.9 
Total Future Payments$76.5 
Less Imputed Interest8.0 
Present Value of Minimum Lease Payments$68.5 
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)Mar 31,
2023
Dec 31,
2022
Operating Lease Right-of-Use Assets$40.0 $45.1 
Operating Lease Liabilities68.5 72.6 
Note 17 - Leases (Continued)
Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statements of Loss. Additional information regarding the Company’s lease cost is presented below.
 Three Months Ended
(Dollars in Millions)Mar 31,
2023
Mar 31,
2022
Lease Cost:
Operating Lease Cost$4.1 $5.6 
Variable Lease Cost0.1 0.1 
Short-Term Lease Cost (1)— 1.2 
Total Lease Expense$4.2 $6.9 
Less: Sub-Lease Income— 0.1 
Total Lease Cost$4.2 $6.8 
(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 leases for the three months ended March 31, 2023 and 2022 is as follows:
 Three Months Ended
(Dollars in Millions)Mar 31,
2023
Mar 31,
2022
Operating Cash Flows from Operating Lease (Fixed Payments)$6.1 $6.2 
Operating Cash Flows from Operating Lease (Liability Reduction)5.5 5.5 
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities1.4 1.0 
As of March 31, 2023, the Company does not have any finance leases.
Significant judgments and assumptions for determining lease asset and liability at March 31, 2023 and 2022 are presented below.
Three Months Ended
Mar 31,
2023
Mar 31,
2022
Weighted-average Remaining Lease Term - Finance LeasesN/A0.8 years
Weighted-average Remaining Lease Term - Operating Leases5.6 years5.8 years
Weighted-average Discount Rate - Finance LeasesN/A0.6 %
Weighted-average Discount Rate - Operating Leases3.6 %3.4 %
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 17 - Leases (Continued)
Future minimum lease payments under operating leases at March 31, 2023 are presented below. There are no significant future minimum lease payments under finance leases.
(Dollars in Millions)
Remainder of 2023$17.3 
202417.6 
202513.0 
20266.5 
20274.2 
2028 and Thereafter17.9 
Total Future Payments$76.5 
Less Imputed Interest8.0 
Present Value of Minimum Lease Payments$68.5