XML 33 R16.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Leases | 12 Months Ended
--- | ---
Dec. 31, 2021
Leases [Abstract] |
Leases | LEASESWe have operating and finance leases for certain manufacturing facilities, offices, service and quick response centers, machinery, equipment and automobiles. Our leases have remaining lease terms of up to 31 years. The te rms and conditions of our leases may include options to extend or terminate the lease which are considered and included in the lease term when these options are reasonably certain of exercise. We determine if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. For all classes of leased assets, we have elected the practical expedient to account for any non-lease components in the contract together with the related lease component in the same unit of account. For lease contracts containing more than one lease component, we allocate the contract consideration to each of the lease components on the basis of relative standalone prices in order to identify the lease payments for each lease component. ROU assets and lease liabilities are recognized in our consolidated balance sheets at the commencement date based on the present value of remaining lease payments over the lease term. Additionally, ROU assets include any lease payments made at or before the commencement date, as well as any initial direct costs incurred, and are reduced by any lease incentives received. As most of our operating leases do not provide an implicit rate, we apply our incremental country-specific borrowing rate to determine the present value of remaining lease payments. Our incremental borrowing country-specific rate is determined based on information available at the commencement date of the lease. Operating leases are included in operating lease right-of-use assets, net and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property plant and equipment, debt due within one year and long-term debt due after one year in our consolidated balance sheets. For all classes of leased assets, we have applied an accounting policy election to exclude short-term leases from recognition in our consolidated balance sheets. A short-term lease has a lease term of 12 months or less at the commencement date and does not include a purchase option that is reasonably certain of exercise. We recognize short-term lease expense in our consolidated income statements on a straight-line basis over the lease term. Our short-term lease expense and short-term lease commitments as of December 31, 2021 are immaterial. We have certain lease contracts with terms and conditions that provide for variability in the payment amount based on changes in facts or circumstances occurring after the commencement date. These variable lease payments are recognized in our consolidated income statements as the obligation is incurred. We have certain lease contracts where we provide a guarantee to the lessor that the value of an underlying asset will be at least a specified amount at the end of the lease. Estimated amounts expected to be paid for residual value guarantees are included in lease liabilities and ROU assets. We had $15.8 million and $0.4 million of legally binding minimum lease payments for operating leases signed but not yet commenced as of December 31, 2021 and 2020. We did not have material subleases, leases that imposed significant restrictions or covenants, material related party leases or sale-leaseback arrangements. Other information related to our leases is as follows:
| December 31,
| 2021 |  | 2020
| (Amounts in thousands)
Finance Leases: |  |  |
ROU assets recorded under finance leases | $ | 28,416 |  |  | $ | 27,624 |
Accumulated depreciation associated with finance leases | (12,227) |  |  | (9,463) |
Total finance leases ROU assets, net(1) | $ | 16,189 |  |  | $ | 18,161 |
Total finance leases liabilities(2) | $ | 16,477 |  |  | $ | 18,287 |
The costs components of operating and finance leases are as follows:
| December 31,
| 2021 |  | 2020 |  | 2019
| (Amounts in thousands)
Operating Lease Costs: |  |  |  |  |
Fixed lease expense(3) | $ | 57,482 |  |  | $ | 57,050 |  |  | $ | 57,450 |
Variable lease expense(3) | 9,331 |  |  | 7,299 |  |  | 6,492 |
Total operating lease expense | $ | 66,813 |  |  | $ | 64,349 |  |  | $ | 63,942 |
Finance Lease Costs: |  |  |  |  |
Depreciation of finance lease ROU assets(3) | $ | 5,374 |  |  | $ | 5,392 |  |  | $ | 4,729 |
Interest on lease liabilities(4) | 617 |  |  | 646 |  |  | 352 |
Total finance lease expense | $ | 5,991 |  |  | $ | 6,038 |  |  | $ | 5,081 |
_____________________ (1) Included in property plant and equipment, net (2) Included in debt due within one year and long-term debt due after one year, accordingly (3) Included in cost of sales and selling, general and administrative expense, accordingly (4) Included in interest expense Supplemental cash flows information related to our leases is as follows:
| December 31,
(Amounts in thousands, except lease term and discount rate) | 2021 |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases(1) | $ | 61,240 |  |  | $ | 66,478 |  |  | $ | 64,725 |
Financing cash flows from finance leases(2) | 5,285 |  |  | 4,704 |  |  | 4,465 |
ROU assets obtained in exchange for lease obligations: |  |  |  |  |
Operating leases | $ | 35,542 |  |  | $ | 62,425 |  |  | $ | 14,569 |
Finance leases | 4,177 |  |  | 13,124 |  |  | 10,615 |
Weighted average remaining lease term (in years) |  |  |  |  |
Operating leases | 8 years |  | 9 years |  | 9 years
Finance leases | 6 years |  | 7 years |  | 3 years
Weighted average discount rate (percent) |  |  |  |  |
Operating leases | 3.9 | % |  | 4.2 | % |  | 4.5 | %
Finance leases | 3.4 | % |  | 3.5 | % |  | 3.6 | %
_____________________ (1) Included in our consolidated statement of cash flows, operating activities, prepaid expenses and other assets, net and retirement obligations and other (2) Included in our consolidated statement of cash flows, financing activities, payments under other financing arrangements Future undiscounted lease payments under operating and finance leases as of December 31, 2021, were as follows:
Year ending December 31, | Operating Leases |  | Finance Leases
| (Amounts in thousands)
2022 | 39,602 |  |  | 5,277 |
2023 | 34,342 |  |  | 3,871 |
2024 | 29,800 |  |  | 2,461 |
2025 | 24,041 |  |  | 1,591 |
2026 | 19,653 |  |  | 716 |
Thereafter | 87,367 |  |  | 4,597 |
Total future minimum lease payments | $ | 234,805 |  |  | $ | 18,513 |
Less: Imputed interest | (35,391) |  |  | (2,036) |
Total | $ | 199,414 |  |  | $ | 16,477 |
Other current liabilities | $ | 32,628 |  |  | $ | — |
Operating lease liabilities | 166,786 |  |  | — |
Debt due within one year | — |  |  | 5,169 |
Long-term debt due after one year | — |  |  | 11,308 |
Total | $ | 199,414 |  |  | $ | 16,477 |
Leases | LEASESWe have operating and finance leases for certain manufacturing facilities, offices, service and quick response centers, machinery, equipment and automobiles. Our leases have remaining lease terms of up to 31 years. The te rms and conditions of our leases may include options to extend or terminate the lease which are considered and included in the lease term when these options are reasonably certain of exercise. We determine if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. For all classes of leased assets, we have elected the practical expedient to account for any non-lease components in the contract together with the related lease component in the same unit of account. For lease contracts containing more than one lease component, we allocate the contract consideration to each of the lease components on the basis of relative standalone prices in order to identify the lease payments for each lease component. ROU assets and lease liabilities are recognized in our consolidated balance sheets at the commencement date based on the present value of remaining lease payments over the lease term. Additionally, ROU assets include any lease payments made at or before the commencement date, as well as any initial direct costs incurred, and are reduced by any lease incentives received. As most of our operating leases do not provide an implicit rate, we apply our incremental country-specific borrowing rate to determine the present value of remaining lease payments. Our incremental borrowing country-specific rate is determined based on information available at the commencement date of the lease. Operating leases are included in operating lease right-of-use assets, net and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property plant and equipment, debt due within one year and long-term debt due after one year in our consolidated balance sheets. For all classes of leased assets, we have applied an accounting policy election to exclude short-term leases from recognition in our consolidated balance sheets. A short-term lease has a lease term of 12 months or less at the commencement date and does not include a purchase option that is reasonably certain of exercise. We recognize short-term lease expense in our consolidated income statements on a straight-line basis over the lease term. Our short-term lease expense and short-term lease commitments as of December 31, 2021 are immaterial. We have certain lease contracts with terms and conditions that provide for variability in the payment amount based on changes in facts or circumstances occurring after the commencement date. These variable lease payments are recognized in our consolidated income statements as the obligation is incurred. We have certain lease contracts where we provide a guarantee to the lessor that the value of an underlying asset will be at least a specified amount at the end of the lease. Estimated amounts expected to be paid for residual value guarantees are included in lease liabilities and ROU assets. We had $15.8 million and $0.4 million of legally binding minimum lease payments for operating leases signed but not yet commenced as of December 31, 2021 and 2020. We did not have material subleases, leases that imposed significant restrictions or covenants, material related party leases or sale-leaseback arrangements. Other information related to our leases is as follows:
| December 31,
| 2021 |  | 2020
| (Amounts in thousands)
Finance Leases: |  |  |
ROU assets recorded under finance leases | $ | 28,416 |  |  | $ | 27,624 |
Accumulated depreciation associated with finance leases | (12,227) |  |  | (9,463) |
Total finance leases ROU assets, net(1) | $ | 16,189 |  |  | $ | 18,161 |
Total finance leases liabilities(2) | $ | 16,477 |  |  | $ | 18,287 |
The costs components of operating and finance leases are as follows:
| December 31,
| 2021 |  | 2020 |  | 2019
| (Amounts in thousands)
Operating Lease Costs: |  |  |  |  |
Fixed lease expense(3) | $ | 57,482 |  |  | $ | 57,050 |  |  | $ | 57,450 |
Variable lease expense(3) | 9,331 |  |  | 7,299 |  |  | 6,492 |
Total operating lease expense | $ | 66,813 |  |  | $ | 64,349 |  |  | $ | 63,942 |
Finance Lease Costs: |  |  |  |  |
Depreciation of finance lease ROU assets(3) | $ | 5,374 |  |  | $ | 5,392 |  |  | $ | 4,729 |
Interest on lease liabilities(4) | 617 |  |  | 646 |  |  | 352 |
Total finance lease expense | $ | 5,991 |  |  | $ | 6,038 |  |  | $ | 5,081 |
_____________________ (1) Included in property plant and equipment, net (2) Included in debt due within one year and long-term debt due after one year, accordingly (3) Included in cost of sales and selling, general and administrative expense, accordingly (4) Included in interest expense Supplemental cash flows information related to our leases is as follows:
| December 31,
(Amounts in thousands, except lease term and discount rate) | 2021 |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases(1) | $ | 61,240 |  |  | $ | 66,478 |  |  | $ | 64,725 |
Financing cash flows from finance leases(2) | 5,285 |  |  | 4,704 |  |  | 4,465 |
ROU assets obtained in exchange for lease obligations: |  |  |  |  |
Operating leases | $ | 35,542 |  |  | $ | 62,425 |  |  | $ | 14,569 |
Finance leases | 4,177 |  |  | 13,124 |  |  | 10,615 |
Weighted average remaining lease term (in years) |  |  |  |  |
Operating leases | 8 years |  | 9 years |  | 9 years
Finance leases | 6 years |  | 7 years |  | 3 years
Weighted average discount rate (percent) |  |  |  |  |
Operating leases | 3.9 | % |  | 4.2 | % |  | 4.5 | %
Finance leases | 3.4 | % |  | 3.5 | % |  | 3.6 | %
_____________________ (1) Included in our consolidated statement of cash flows, operating activities, prepaid expenses and other assets, net and retirement obligations and other (2) Included in our consolidated statement of cash flows, financing activities, payments under other financing arrangements Future undiscounted lease payments under operating and finance leases as of December 31, 2021, were as follows:
Year ending December 31, | Operating Leases |  | Finance Leases
| (Amounts in thousands)
2022 | 39,602 |  |  | 5,277 |
2023 | 34,342 |  |  | 3,871 |
2024 | 29,800 |  |  | 2,461 |
2025 | 24,041 |  |  | 1,591 |
2026 | 19,653 |  |  | 716 |
Thereafter | 87,367 |  |  | 4,597 |
Total future minimum lease payments | $ | 234,805 |  |  | $ | 18,513 |
Less: Imputed interest | (35,391) |  |  | (2,036) |
Total | $ | 199,414 |  |  | $ | 16,477 |
Other current liabilities | $ | 32,628 |  |  | $ | — |
Operating lease liabilities | 166,786 |  |  | — |
Debt due within one year | — |  |  | 5,169 |
Long-term debt due after one year | — |  |  | 11,308 |
Total | $ | 199,414 |  |  | $ | 16,477 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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 http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration