Leases

12 Months Ended

Dec. 31, 2021

LEASES

We lease real estate, including laboratory and office space, and certain equipment.

Our leases have remaining lease terms ranging from less than one year to nine years. Certain leases include one or more options to renew, exercised at our sole discretion, with renewal terms that can extend the lease term from one year to six years.

In addition, we sublease certain real estate to third-parties. Our sublease portfolio consists of operating leases, with remaining lease terms ranging from three years to seven years. Our subleases do not include an option to renew as they are coterminous with our operating leases.

All of our leases qualify as operating leases. The following table summarizes the presentation in our consolidated balance sheets of our operating leases:


		As of December 31,
(In millions)	Balance sheet location	2021		2020
Assets:
Operating lease assets	Operating lease assets	$	375.4	$	433.3

Liabilities
Current operating lease liabilities	Accrued expense and other	$	89.1	$	83.2
Non-current operating lease liabilities	Long-term operating lease liabilities	330.4		402.0
Total operating lease liabilities		$	419.5	$	485.2

The following table summarizes the effect of lease costs in our consolidated statements of income:


		For the Years Ended December 31,
(In millions)	Income Statement Location	2021		2020
Operating lease cost	Research and development	$	3.4	$	5.2
	Selling, general and administrative	95.9		93.1
Variable lease cost	Research and development	0.8		1.1
	Selling, general and administrative	25.7		21.1
Sublease income	Selling, general and administrative	(23.9)		(24.2)
	Other (income) expense, net	(4.0)		(3.9)
Net lease cost		$	97.9	$	92.4

Variable lease cost primarily related to operating expense, taxes and insurance associated with our operating leases. As these costs are generally variable in nature, they are not included in the measurement of the operating lease asset and related lease liability.

The minimum lease payments for the next five years and thereafter is expected to be as follows:


(In millions)	As of December 31, 2021
2022	$	99.6
2023	89.7
2024	79.7
2025	57.2
2026	44.8
Thereafter	84.0
Total lease payments	$	455.0
Less: interest	35.5
Present value of operating lease liabilities	$	419.5

The weighted average remaining lease term and weighted average discount rate of our operating leases are as follows:


	As of December 31,
	2021		2020
Weighted average remaining lease term in years	5.43		6.30
Weighted average discount rate	2.9	%	2.9	%

Supplemental disclosure of cash flow information related to our operating leases included in cash flow provided by operating activities in our consolidated statements of cash flow is as follows:


	As of December 31,
(In millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities	$	105.8	$	100.2
Operating lease assets obtained in exchange for lease obligations	18.1		59.0