XML 28 R17.htm IDEA: XBRL DOCUMENT
v3.24.3

Leases | 9 Months Ended
--- | ---
Sep. 30, 2024
Leases [Abstract] |
Leases | LEASES We lease various assets in the ordinary course of business as follows: warehouses to store our materials and perform staging activities for certain products we install, various office spaces for selling and administrative activities to support our business, and certain vehicles and equipment to facilitate our operations, including, but not limited to, trucks, forklifts and office equipment. During the nine months ended September 30, 2024, we impaired the operating lease right-of-use asset for one of our branches due to its wind down, as described in Note 9, Fair Value Measurements. The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets (in millions):
|  |  |  | As of September 30, |  | As of December 31,
|  | Classification |  | 2024 |  | 2023
Assets |  |  |  |  |  |
Non-Current |  |  |  |  |  |
Operating |  | Operating lease right-of-use assets |  | $ | 86.1 |  |  | $ | 78.1 |
Finance |  | Property and equipment, net |  | 8.6 |  |  | 9.1 |
Total lease assets |  |  |  | $ | 94.7 |  |  | $ | 87.2 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating |  | Current maturities of operating lease obligations |  | $ | 31.2 |  |  | $ | 28.3 |
Financing |  | Current maturities of finance lease obligations |  | 2.8 |  |  | 2.7 |
Non-Current |  |  |  |  |  |
Operating |  | Operating lease obligations |  | 54.6 |  |  | 49.9 |
Financing |  | Finance lease obligations |  | 6.0 |  |  | 6.6 |
Total lease liabilities |  | $ | 94.6 |  |  | $ | 87.5 |
Weighted-average remaining lease term: |  |  |  |
Operating leases |  |  |  | 3.5 years |  | 3.6 years
Finance leases |  |  |  | 3.2 years |  | 3.5 years
Weighted-average discount rate: |  |  |  |
Operating leases |  |  |  | 5.63 | % |  | 5.23 | %
Finance leases |  |  |  | 7.63 | % |  | 6.91 | %
Lease Costs The table below presents certain information related to the lease costs for finance and operating leases (in millions):
|  |  |  | Three months ended September 30, |  | Nine months ended September 30,
|  | Classification |  | 2024 |  | 2023 |  | 2024 |  | 2023
Operating lease cost(1) |  | Administrative |  | $ | 11.2 |  |  | $ | 9.7 |  |  | $ | 32.3 |  |  | $ | 28.3 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |
Amortization of leased assets(2) |  | Cost of sales |  | 1.0 |  |  | 1.0 |  |  | 3.0 |  |  | 2.8 |
Interest on finance lease obligations |  | Interest expense, net |  | 0.2 |  |  | 0.1 |  |  | 0.5 |  |  | 0.4 |
Total lease costs |  |  |  | $ | 12.4 |  |  | $ | 10.8 |  |  | $ | 35.8 |  |  | $ | 31.5 |
(1)Includes variable lease costs of $1.3 million and $1.2 million for the three months ended September 30, 2024 and 2023, respectively, and $3.8 million and $3.5 million for the nine months ended September 30, 2024 and 2023, respectively, and short-term lease costs of $0.6 million and $0.3 million for the three months ended September 30, 2024 and 2023, respectively and $2.0 million and $0.9 million for the nine months ended September 30, 2024 and 2023, respectively. (2)Includes variable lease costs of $0.2 million for each of the three months ended September 30, 2024 and 2023, respectively, and $0.6 million for each of the nine months ended September 30, 2024 and 2023, respectively. Other Information The table below presents supplemental cash flow information related to leases (in millions):
| Three months ended September 30, |  | Nine months ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows for operating leases | $ | 9.2 |  |  | $ | 7.9 |  |  | $ | 26.5 |  |  | $ | 23.5 |
Operating cash flows for finance leases | 0.2 |  |  | 0.1 |  |  | 0.5 |  |  | 0.4 |
Financing cash flows for finance leases | 0.7 |  |  | 0.8 |  |  | 2.2 |  |  | 2.2 |
Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet as of September 30, 2024 (in millions):
| Finance Leases |  | Operating Leases
|  |  | Related Party |  | Other |  | Total Operating
Remainder of 2024 | $ | 0.9 |  |  | $ | 0.3 |  |  | $ | 9.1 |  |  | $ | 9.4 |
2025 | 3.3 |  |  | 1.1 |  |  | 32.3 |  |  | 33.4 |
2026 | 3.0 |  |  | 0.5 |  |  | 23.7 |  |  | 24.2 |
2027 | 2.0 |  |  | 0.1 |  |  | 13.9 |  |  | 14.0 |
2028 | 0.7 |  |  | — |  |  | 7.0 |  |  | 7.0 |
Thereafter | 0.1 |  |  | — |  |  | 7.2 |  |  | 7.2 |
Total minimum lease payments | 10.0 |  |  | $ | 2.0 |  |  | $ | 93.2 |  |  | 95.2 |
Less: Amounts representing interest | (1.2) |  |  |  |  |  |  | (9.4) |
Present value of future minimum lease payments | 8.8 |  |  |  |  |  |  | 85.8 |
Less: Current obligation under leases | (2.8) |  |  |  |  |  |  | (31.2) |
Long-term lease obligations | $ | 6.0 |  |  |  |  |  |  | $ | 54.6 |
Leases | LEASES We lease various assets in the ordinary course of business as follows: warehouses to store our materials and perform staging activities for certain products we install, various office spaces for selling and administrative activities to support our business, and certain vehicles and equipment to facilitate our operations, including, but not limited to, trucks, forklifts and office equipment. During the nine months ended September 30, 2024, we impaired the operating lease right-of-use asset for one of our branches due to its wind down, as described in Note 9, Fair Value Measurements. The table below presents the lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheets (in millions):
|  |  |  | As of September 30, |  | As of December 31,
|  | Classification |  | 2024 |  | 2023
Assets |  |  |  |  |  |
Non-Current |  |  |  |  |  |
Operating |  | Operating lease right-of-use assets |  | $ | 86.1 |  |  | $ | 78.1 |
Finance |  | Property and equipment, net |  | 8.6 |  |  | 9.1 |
Total lease assets |  |  |  | $ | 94.7 |  |  | $ | 87.2 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating |  | Current maturities of operating lease obligations |  | $ | 31.2 |  |  | $ | 28.3 |
Financing |  | Current maturities of finance lease obligations |  | 2.8 |  |  | 2.7 |
Non-Current |  |  |  |  |  |
Operating |  | Operating lease obligations |  | 54.6 |  |  | 49.9 |
Financing |  | Finance lease obligations |  | 6.0 |  |  | 6.6 |
Total lease liabilities |  | $ | 94.6 |  |  | $ | 87.5 |
Weighted-average remaining lease term: |  |  |  |
Operating leases |  |  |  | 3.5 years |  | 3.6 years
Finance leases |  |  |  | 3.2 years |  | 3.5 years
Weighted-average discount rate: |  |  |  |
Operating leases |  |  |  | 5.63 | % |  | 5.23 | %
Finance leases |  |  |  | 7.63 | % |  | 6.91 | %
Lease Costs The table below presents certain information related to the lease costs for finance and operating leases (in millions):
|  |  |  | Three months ended September 30, |  | Nine months ended September 30,
|  | Classification |  | 2024 |  | 2023 |  | 2024 |  | 2023
Operating lease cost(1) |  | Administrative |  | $ | 11.2 |  |  | $ | 9.7 |  |  | $ | 32.3 |  |  | $ | 28.3 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |
Amortization of leased assets(2) |  | Cost of sales |  | 1.0 |  |  | 1.0 |  |  | 3.0 |  |  | 2.8 |
Interest on finance lease obligations |  | Interest expense, net |  | 0.2 |  |  | 0.1 |  |  | 0.5 |  |  | 0.4 |
Total lease costs |  |  |  | $ | 12.4 |  |  | $ | 10.8 |  |  | $ | 35.8 |  |  | $ | 31.5 |
(1)Includes variable lease costs of $1.3 million and $1.2 million for the three months ended September 30, 2024 and 2023, respectively, and $3.8 million and $3.5 million for the nine months ended September 30, 2024 and 2023, respectively, and short-term lease costs of $0.6 million and $0.3 million for the three months ended September 30, 2024 and 2023, respectively and $2.0 million and $0.9 million for the nine months ended September 30, 2024 and 2023, respectively. (2)Includes variable lease costs of $0.2 million for each of the three months ended September 30, 2024 and 2023, respectively, and $0.6 million for each of the nine months ended September 30, 2024 and 2023, respectively. Other Information The table below presents supplemental cash flow information related to leases (in millions):
| Three months ended September 30, |  | Nine months ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows for operating leases | $ | 9.2 |  |  | $ | 7.9 |  |  | $ | 26.5 |  |  | $ | 23.5 |
Operating cash flows for finance leases | 0.2 |  |  | 0.1 |  |  | 0.5 |  |  | 0.4 |
Financing cash flows for finance leases | 0.7 |  |  | 0.8 |  |  | 2.2 |  |  | 2.2 |
Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years for the finance lease obligations and operating lease obligations recorded on the Condensed Consolidated Balance Sheet as of September 30, 2024 (in millions):
| Finance Leases |  | Operating Leases
|  |  | Related Party |  | Other |  | Total Operating
Remainder of 2024 | $ | 0.9 |  |  | $ | 0.3 |  |  | $ | 9.1 |  |  | $ | 9.4 |
2025 | 3.3 |  |  | 1.1 |  |  | 32.3 |  |  | 33.4 |
2026 | 3.0 |  |  | 0.5 |  |  | 23.7 |  |  | 24.2 |
2027 | 2.0 |  |  | 0.1 |  |  | 13.9 |  |  | 14.0 |
2028 | 0.7 |  |  | — |  |  | 7.0 |  |  | 7.0 |
Thereafter | 0.1 |  |  | — |  |  | 7.2 |  |  | 7.2 |
Total minimum lease payments | 10.0 |  |  | $ | 2.0 |  |  | $ | 93.2 |  |  | 95.2 |
Less: Amounts representing interest | (1.2) |  |  |  |  |  |  | (9.4) |
Present value of future minimum lease payments | 8.8 |  |  |  |  |  |  | 85.8 |
Less: Current obligation under leases | (2.8) |  |  |  |  |  |  | (31.2) |
Long-term lease obligations | $ | 6.0 |  |  |  |  |  |  | $ | 54.6 |

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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration