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Leases And Other Commitments | 12 Months Ended
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Dec. 31, 2021
Leases [Abstract] |
Leases And Other Commitments |
6. Leases And Other Commitments
Leases
We lease office, manufacturing and warehouse space facilities under various domestic and international non-cancellable operating and finance lease arrangements. We also have a land lease in Penang, Malaysia, that expires in 2080, for the build-out of our international manufacturing facility. Our leases, excluding our land lease in Penang, Malaysia, have remaining lease terms of up to nineteen years, some of which include one or more options to extend the leases for up to five years per option. Options to extend the lease are included in the lease liability if they are reasonably certain of being exercised. Leases are classified as operating or financing at lease commencement. Operating lease right-of-use assets and lease liabilities are presented separately in our consolidated balance sheets. Finance lease right-of-use assets are included in property and equipment and finance lease liabilities are included in accounts payable and accrued liabilities and in other long-term liabilities in our consolidated balance sheets. As of December 31, 2021, the maturities of our operating and finance lease liabilities were as shown in the table below:
(In millions) | Operating Leases |  | Finance Leases
2022 | $ | 25.7 |  |  | $ | 6.3 |
2023 | 25.2 |  |  | 6.4 |
2024 | 23.5 |  |  | 5.4 |
2025 | 22.5 |  |  | 4.8 |
2026 | 22.3 |  |  | 4.9 |
Thereafter | 17.2 |  |  | 64.0 |
Total future lease cost (1) | 136.4 |  |  | 91.8 |
Less: Imputed interest | (17.3) |  |  | (31.5) |
Present value of future payments | 119.1 |  |  | 60.3 |
Less: Current portion | (20.5) |  |  | (3.3) |
Long-term portion | $ | 98.6 |  |  | $ | 57.0 |
Certain lease agreements require us to return designated areas of leased space to its original condition upon termination of the lease agreement, for which we record an asset retirement obligation and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. In subsequent periods, the asset retirement obligation is accreted for the change in its present value and the capitalized asset is depreciated, both over the term of the associated lease agreement. Asset retirement obligations of $7.4 million and $4.5 million as of December 31, 2021 and 2020, respectively, are included in other long-term liabilities in our consolidated balance sheets. The components of lease expense for the twelve months ended December 31, 2021, 2020 and 2019 were as follows:
| Twelve Months Ended December 31,
(In millions) | 2021 |  | 2020 |  | 2019
Finance lease cost: |  |  |  |  |
Amortization of right-of-use assets | $ | 4.1 |  |  | $ | 2.0 |  |  | $ | 1.1 |
Interest on lease liabilities | 3.0 |  |  | 1.9 |  |  | 0.8 |
Operating lease cost | 23.3 |  |  | 18.4 |  |  | 12.2 |
Short-term lease cost (1) | 2.3 |  |  | 1.3 |  |  | 3.5 |
Variable lease cost (2) | 6.0 |  |  | 4.2 |  |  | 3.9 |
Total lease cost | $ | 38.7 |  |  | $ | 27.8 |  |  | $ | 21.5 |
(1) Short-term lease cost is primarily related to temporary office space associated with the transition of certain operations to the Philippines. (2) Variable lease costs are primarily related to common area maintenance charges and property taxes. Other information related to our leases is as follows:
| Twelve Months Ended December 31,
(Dollars in millions) | 2021 |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 23.3 |  |  | $ | 18.3 |  |  | $ | 14.3 |
Operating cash flows from finance leases | 1.9 |  |  | 0.7 |  |  | 0.8 |
Financing cash flows from finance leases | 9.9 |  |  | 8.5 |  |  | 0.5 |
Right-of-use assets obtained in exchange for lease liabilities: |  |  |  |  |
Operating leases | 13.1 |  |  | 33.5 |  |  | 80.6 |
Finance leases | $ | 6.4 |  |  | $ | 41.7 |  |  | $ | 15.5 |
Weighted average remaining lease term: |  |  |  |  |
Operating leases | 5.5 years |  | 6.1 years |  | 6.2 years
Finance leases | 15.9 years |  | 23.3 years |  | 13.3 years
Weighted average discount rate: |  |  |  |  |
Operating leases | 5.0 | % |  | 5.0 | % |  | 5.0 | %
Finance leases | 5.1 | % |  | 5.0 | % |  | 5.0 | %
Amortization of operating lease right-of-use asset included in cash flows from operating activities in our consolidated statements of cash flows was $18.0 million for the twelve months ended December 31, 2021, $12.4 million for the twelve months ended December 31, 2020 and $9.1 million for the twelve months ended December 31, 2019.
Purchase Commitments
We are party to various purchase arrangements related to our manufacturing and research and development activities. We had approximately $324.1 million as of December 31, 2021 and $335.6 million as of December 31, 2020 of open purchase orders and contractual obligations in the ordinary course of business, the majority of which are due within one year
Leases And Other Commitments |
6. Leases And Other Commitments
Leases
We lease office, manufacturing and warehouse space facilities under various domestic and international non-cancellable operating and finance lease arrangements. We also have a land lease in Penang, Malaysia, that expires in 2080, for the build-out of our international manufacturing facility. Our leases, excluding our land lease in Penang, Malaysia, have remaining lease terms of up to nineteen years, some of which include one or more options to extend the leases for up to five years per option. Options to extend the lease are included in the lease liability if they are reasonably certain of being exercised. Leases are classified as operating or financing at lease commencement. Operating lease right-of-use assets and lease liabilities are presented separately in our consolidated balance sheets. Finance lease right-of-use assets are included in property and equipment and finance lease liabilities are included in accounts payable and accrued liabilities and in other long-term liabilities in our consolidated balance sheets. As of December 31, 2021, the maturities of our operating and finance lease liabilities were as shown in the table below:
(In millions) | Operating Leases |  | Finance Leases
2022 | $ | 25.7 |  |  | $ | 6.3 |
2023 | 25.2 |  |  | 6.4 |
2024 | 23.5 |  |  | 5.4 |
2025 | 22.5 |  |  | 4.8 |
2026 | 22.3 |  |  | 4.9 |
Thereafter | 17.2 |  |  | 64.0 |
Total future lease cost (1) | 136.4 |  |  | 91.8 |
Less: Imputed interest | (17.3) |  |  | (31.5) |
Present value of future payments | 119.1 |  |  | 60.3 |
Less: Current portion | (20.5) |  |  | (3.3) |
Long-term portion | $ | 98.6 |  |  | $ | 57.0 |
Certain lease agreements require us to return designated areas of leased space to its original condition upon termination of the lease agreement, for which we record an asset retirement obligation and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. In subsequent periods, the asset retirement obligation is accreted for the change in its present value and the capitalized asset is depreciated, both over the term of the associated lease agreement. Asset retirement obligations of $7.4 million and $4.5 million as of December 31, 2021 and 2020, respectively, are included in other long-term liabilities in our consolidated balance sheets. The components of lease expense for the twelve months ended December 31, 2021, 2020 and 2019 were as follows:
| Twelve Months Ended December 31,
(In millions) | 2021 |  | 2020 |  | 2019
Finance lease cost: |  |  |  |  |
Amortization of right-of-use assets | $ | 4.1 |  |  | $ | 2.0 |  |  | $ | 1.1 |
Interest on lease liabilities | 3.0 |  |  | 1.9 |  |  | 0.8 |
Operating lease cost | 23.3 |  |  | 18.4 |  |  | 12.2 |
Short-term lease cost (1) | 2.3 |  |  | 1.3 |  |  | 3.5 |
Variable lease cost (2) | 6.0 |  |  | 4.2 |  |  | 3.9 |
Total lease cost | $ | 38.7 |  |  | $ | 27.8 |  |  | $ | 21.5 |
(1) Short-term lease cost is primarily related to temporary office space associated with the transition of certain operations to the Philippines. (2) Variable lease costs are primarily related to common area maintenance charges and property taxes. Other information related to our leases is as follows:
| Twelve Months Ended December 31,
(Dollars in millions) | 2021 |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 23.3 |  |  | $ | 18.3 |  |  | $ | 14.3 |
Operating cash flows from finance leases | 1.9 |  |  | 0.7 |  |  | 0.8 |
Financing cash flows from finance leases | 9.9 |  |  | 8.5 |  |  | 0.5 |
Right-of-use assets obtained in exchange for lease liabilities: |  |  |  |  |
Operating leases | 13.1 |  |  | 33.5 |  |  | 80.6 |
Finance leases | $ | 6.4 |  |  | $ | 41.7 |  |  | $ | 15.5 |
Weighted average remaining lease term: |  |  |  |  |
Operating leases | 5.5 years |  | 6.1 years |  | 6.2 years
Finance leases | 15.9 years |  | 23.3 years |  | 13.3 years
Weighted average discount rate: |  |  |  |  |
Operating leases | 5.0 | % |  | 5.0 | % |  | 5.0 | %
Finance leases | 5.1 | % |  | 5.0 | % |  | 5.0 | %
Amortization of operating lease right-of-use asset included in cash flows from operating activities in our consolidated statements of cash flows was $18.0 million for the twelve months ended December 31, 2021, $12.4 million for the twelve months ended December 31, 2020 and $9.1 million for the twelve months ended December 31, 2019.
Purchase Commitments
We are party to various purchase arrangements related to our manufacturing and research and development activities. We had approximately $324.1 million as of December 31, 2021 and $335.6 million as of December 31, 2020 of open purchase orders and contractual obligations in the ordinary course of business, the majority of which are due within one year

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