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Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Leases

The Company leases retail stores, manufacturing and distribution facilities, office space and equipment under operating and finance lease agreements. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to several years, with the longest renewal period extending through 2034. The exercise of lease renewal options are at the Company's sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

The following table summarizes the classification of operating and finance lease assets and obligations in the Company's Consolidated Balance Sheet as of December 31, 2022 and 2021:

(in millions)												December 31, 2022						December 31, 2021
Assets
Operating lease assets						Operating lease right-of-use assets						$	506.8					$	480.6
Finance lease assets						Property, plant and equipment, net						68.1						64.8
Total leased assets												$	574.9					$	545.4
Liabilities
Short-term:
Operating lease obligations						Short-term operating lease obligations						$	105.5					$	101.7
Finance lease obligations						Current portion of long-term debt						13.1						13.7
Long-term:
Operating lease obligations						Long-term operating lease obligations						453.5						427.0
Finance lease obligations						Long-term debt, net						65.6						61.5
Total lease obligations												$	637.7					$	603.9

The following table summarizes the classification of lease expense in the Company's Consolidated Statements of Income for the years ended December 31, 2022, 2021 and 2020:

						Twelve Months Ended
(in millions)						December 31, 2022						December 31, 2021						December 31, 2020
Operating lease expense:
Operating lease expense						$	128.9					$	99.8					$	75.4
Short-term lease expense						15.3						13.1						11.1
Variable lease expense						31.5						26.9						22.2
Finance lease expense:
Amortization of right-of-use assets						14.9						12.6						9.3
Interest on lease obligations						4.4						4.5						4.7
Total lease expense						$	195.0					$	156.9					$	122.7

The following table sets forth the scheduled maturities of lease obligations as of December 31, 2022:

(in millions)						Operating Leases						Finance Leases						Total
Year Ended December 31,
2023						$	123.7					$	16.8					$	140.5
2024						109.5						14.0						123.5
2025						94.2						12.1						106.3
2026						79.3						12.0						91.3
2027						67.3						10.5						77.8
Thereafter						165.6						28.5						194.1
Total lease payments						639.6						93.9						733.5
Less: Interest						(80.6)						(15.2)						(95.8)
Present value of lease obligations						$	559.0					$	78.7					$	637.7

The following table provides lease term and discount rate information related to operating and finance leases as of December 31, 2022:

						December 31, 2022
Weighted average remaining lease term (years):
Operating leases						6.37
Finance leases						6.96
Weighted average discount rate:
Operating leases						4.24		%
Finance leases						5.02		%

The following table provides supplemental information related to the Company's Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020:

						Twelve Months Ended December 31,
(in millions)						2022						2021						2020
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows paid for operating leases (a)						$	126.4					$	89.6					$	70.1
Operating cash flows paid for finance leases						$	14.7					$	4.5					$	4.7
Financing cash flows paid for finance leases						$	4.4					$	13.4					$	10.2
Right-of-use assets obtained in exchange for new operating lease obligations						$	173.0					$	101.6					$	109.4
Right-of-use assets obtained in exchange for new finance lease obligations						$	19.1					$	10.8					$	17.6

(a)Operating cash flows paid for operating leases are included within the change in other assets and liabilities within the Consolidated Statement of Cash Flows offset by non-cash right-of-use asset amortization and lease liability accretion.

Leases

Leases

The Company leases retail stores, manufacturing and distribution facilities, office space and equipment under operating and finance lease agreements. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to several years, with the longest renewal period extending through 2034. The exercise of lease renewal options are at the Company's sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

The following table summarizes the classification of operating and finance lease assets and obligations in the Company's Consolidated Balance Sheet as of December 31, 2022 and 2021:

(in millions)												December 31, 2022						December 31, 2021
Assets
Operating lease assets						Operating lease right-of-use assets						$	506.8					$	480.6
Finance lease assets						Property, plant and equipment, net						68.1						64.8
Total leased assets												$	574.9					$	545.4
Liabilities
Short-term:
Operating lease obligations						Short-term operating lease obligations						$	105.5					$	101.7
Finance lease obligations						Current portion of long-term debt						13.1						13.7
Long-term:
Operating lease obligations						Long-term operating lease obligations						453.5						427.0
Finance lease obligations						Long-term debt, net						65.6						61.5
Total lease obligations												$	637.7					$	603.9

The following table summarizes the classification of lease expense in the Company's Consolidated Statements of Income for the years ended December 31, 2022, 2021 and 2020:

						Twelve Months Ended
(in millions)						December 31, 2022						December 31, 2021						December 31, 2020
Operating lease expense:
Operating lease expense						$	128.9					$	99.8					$	75.4
Short-term lease expense						15.3						13.1						11.1
Variable lease expense						31.5						26.9						22.2
Finance lease expense:
Amortization of right-of-use assets						14.9						12.6						9.3
Interest on lease obligations						4.4						4.5						4.7
Total lease expense						$	195.0					$	156.9					$	122.7

The following table sets forth the scheduled maturities of lease obligations as of December 31, 2022:

(in millions)						Operating Leases						Finance Leases						Total
Year Ended December 31,
2023						$	123.7					$	16.8					$	140.5
2024						109.5						14.0						123.5
2025						94.2						12.1						106.3
2026						79.3						12.0						91.3
2027						67.3						10.5						77.8
Thereafter						165.6						28.5						194.1
Total lease payments						639.6						93.9						733.5
Less: Interest						(80.6)						(15.2)						(95.8)
Present value of lease obligations						$	559.0					$	78.7					$	637.7

The following table provides lease term and discount rate information related to operating and finance leases as of December 31, 2022:

						December 31, 2022
Weighted average remaining lease term (years):
Operating leases						6.37
Finance leases						6.96
Weighted average discount rate:
Operating leases						4.24		%
Finance leases						5.02		%

The following table provides supplemental information related to the Company's Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020:

						Twelve Months Ended December 31,
(in millions)						2022						2021						2020
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows paid for operating leases (a)						$	126.4					$	89.6					$	70.1
Operating cash flows paid for finance leases						$	14.7					$	4.5					$	4.7
Financing cash flows paid for finance leases						$	4.4					$	13.4					$	10.2
Right-of-use assets obtained in exchange for new operating lease obligations						$	173.0					$	101.6					$	109.4
Right-of-use assets obtained in exchange for new finance lease obligations						$	19.1					$	10.8					$	17.6

(a)Operating cash flows paid for operating leases are included within the change in other assets and liabilities within the Consolidated Statement of Cash Flows offset by non-cash right-of-use asset amortization and lease liability accretion.

X

- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI https://asc.fasb.org/subtopic&trid=77888251

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X

- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI https://asc.fasb.org/subtopic&trid=77888251

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