Leases

12 Months Ended

Dec. 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 vehicles and 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 24. LEASES (Continued)

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

(Dollars in Millions)	Dec 31, 2023		Dec 31, 2022
Operating Lease Right-of-Use Assets	$	38.4	$	45.1
Operating Lease Liabilities	62.3		72.6

Lease expenses are primarily included in insurance expenses in the Consolidated Statements of Loss. Additional information regarding the Company’s operating leases for the year ended December 31, 2023 and 2022 is presented below.

(Dollars in Millions)	2023		2022
Lease Cost:
Operating Lease Cost	15.7		21.3
Variable Lease Cost	3.2		0.3
Short-Term Lease Cost1	0.3		3.8
Total Lease Expense	$	19.2	$	25.4
Less: Short-Term Lease Cost	—		0.1
Total Lease Cost	$	19.2	$	25.3

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

The Company incurred expenses of $18.0 million for the year ended December 31, 2023, associated with lease impairments and other related costs. The Company had no expenses during the year ended December 31, 2022 and 2021 associated with lease impairments and other related costs.

Other Information on Operating Leases

Significant judgments and assumptions for determining lease asset and liability at December 31, 2023 and 2022 are presented below.

	2023		2022
Weighted-average Remaining Lease Term - Operating Leases	5.5 years		5.6 years
Weighted-average Discount Rate - Operating Leases	4.3	%	3.6	%

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 to determine its lease payments’ present value.

Future minimum lease payments under operating leases at December 31, 2023 are presented below.

(Dollars in Millions)
2024	$	20.4
2025	15.5
2026	9.4
2027	7.2
2028	4.4
2029 and Thereafter	15.2
Total Future Payments	$	72.1
Less: Discount	9.8
Present Value of Minimum Lease Payments	$	62.3

As of December 31, 2023, the Company did not have any finance leases.

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 vehicles and 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 24. LEASES (Continued)

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

(Dollars in Millions)	Dec 31, 2023		Dec 31, 2022
Operating Lease Right-of-Use Assets	$	38.4	$	45.1
Operating Lease Liabilities	62.3		72.6

Lease expenses are primarily included in insurance expenses in the Consolidated Statements of Loss. Additional information regarding the Company’s operating leases for the year ended December 31, 2023 and 2022 is presented below.

(Dollars in Millions)	2023		2022
Lease Cost:
Operating Lease Cost	15.7		21.3
Variable Lease Cost	3.2		0.3
Short-Term Lease Cost1	0.3		3.8
Total Lease Expense	$	19.2	$	25.4
Less: Short-Term Lease Cost	—		0.1
Total Lease Cost	$	19.2	$	25.3

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

The Company incurred expenses of $18.0 million for the year ended December 31, 2023, associated with lease impairments and other related costs. The Company had no expenses during the year ended December 31, 2022 and 2021 associated with lease impairments and other related costs.

Other Information on Operating Leases

Significant judgments and assumptions for determining lease asset and liability at December 31, 2023 and 2022 are presented below.

	2023		2022
Weighted-average Remaining Lease Term - Operating Leases	5.5 years		5.6 years
Weighted-average Discount Rate - Operating Leases	4.3	%	3.6	%

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 to determine its lease payments’ present value.

Future minimum lease payments under operating leases at December 31, 2023 are presented below.

(Dollars in Millions)
2024	$	20.4
2025	15.5
2026	9.4
2027	7.2
2028	4.4
2029 and Thereafter	15.2
Total Future Payments	$	72.1
Less: Discount	9.8
Present Value of Minimum Lease Payments	$	62.3

As of December 31, 2023, the Company did not have any finance leases.