Leases

12 Months Ended

Dec. 31, 2020

6. Leases

We have operating and finance leases for buildings and certain machinery and equipment. Operating leases are included in operating lease assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. Amounts recognized for finance leases as of and for the years ended December 31, 2020 and 2019 were immaterial.

Operating lease expense recognized in the consolidated statement of comprehensive income for the years ended December 31, 2020 and 2019 were $53.9 million and $51.0 million, respectively, including approximately $9.3 million and $8.2 million of short-term and variable lease costs for the years ended December 31, 2020 and 2019, respectively. Operating lease expense (reduced by immaterial amounts from subleases) was $48.4 million for the year ended December 31, 2018. The 2020 and 2019

expenses were determined in accordance with ASC 842, whereas 2018 expenses were determined in accordance with the previous leasing guidance (ASC 840).

Other information related to leases was as follows:

(In millions, except lease term and discount rate)	December 31, 2020			December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	43.5		$	41.3
Right-of-use assets obtained in exchange for operating lease obligations	$	40.5		$	24.5
Weighted average remaining lease term - operating leases	6.4 years			7.1 years
Weighted average discount rate - operating leases		3.8	%		4.2	%

Total lease payments under non-cancellable operating leases as of December 31, 2020 were as follows:

(In millions)
Year Ending December 31,
2021	$	42.8
2022		36.2
2023		31.3
2024		23.8
2025		16.7
Thereafter		52.7
Total lease payments		203.5
Less imputed interest		(24.5	)
Total	$	179.0
Reported as of December 31, 2020
Other current liabilities	$	38.5
Operating lease liabilities		140.5
Total	$	179.0