XML 22 R13.htm IDEA: XBRL DOCUMENT v3.22.2.2
Leases
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leases Leases
Lessor
SEE has contractual obligations as a lessor with respect to some of our automated and equipment solutions including "free on loan" equipment and leased equipment, both sales-type and operating. The consideration in a contract that contains both lease and non-lease components is allocated based on the standalone selling price.
Our contractual obligations for operating leases can include termination and renewal options. Our contractual obligations for sales-type leases tend to have fixed terms and can include purchase options. We utilize the reasonably certain threshold criteria in determining which options our customers will exercise.
All lease payments are primarily fixed in nature and therefore captured in the lease receivable. Our sales-type lease receivable balances at September 30, 2022 and December 31, 2021 were as follows:
(In millions)September 30, 2022December 31, 2021
Short-Term (12 months or less)$6.0 $5.7 
Long-Term16.8 18.8 
Lease receivables$22.8 $24.5 
Sales-type and operating lease revenue was less than 1% of net trade sales for the nine months ended September 30, 2022 and year ended December 31, 2021.
Lessee
SEE has contractual obligations as a lessee with respect to warehouses, offices and manufacturing facilities, IT equipment, automobiles, and material production equipment.
The following table details our lease obligations included in our Condensed Consolidated Balance Sheets.
(In millions)September 30, 2022December 31, 2021
Other non-current assets:
Finance leases - ROU assets$57.0 $58.0 
Finance leases - Accumulated depreciation(30.4)(27.3)
Operating lease right-of-use-assets:
Operating leases - ROU assets150.1 133.5 
Operating leases - Accumulated depreciation(80.0)(69.7)
Total lease assets$96.7 $94.5 
Current portion of long-term debt:
Finance leases$(8.4)(10.2)
Current portion of operating lease liabilities:
Operating leases (22.4)(21.2)
Long-term debt, less current portion:
Finance leases(17.5)(19.2)
Long-term operating lease liabilities, less current portion:
Operating leases(51.9)(44.5)
Total lease liabilities$(100.2)$(95.1)
At September 30, 2022, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows:
(In millions)Finance leasesOperating leases
Remainder of 2022$3.0 $6.9 
20238.4 24.1 
20244.2 17.8 
20252.7 13.2 
20262.1 10.0 
Thereafter10.1 11.0 
Total lease payments30.5 83.0 
Less: Interest(4.6)(8.7)
Present value of lease liabilities$25.9 $74.3 
The following lease cost is included in our Condensed Consolidated Statements of Operations:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2022202120222021
Lease cost(1)
Finance leases
Amortization of ROU assets$2.6 $2.7 $7.9 $7.9 
Interest on lease liabilities0.3 0.3 1.0 1.1 
Operating leases7.3 7.7 23.6 23.0 
Short-term lease cost0.9 1.3 2.2 3.8 
Variable lease cost1.9 1.8 5.3 4.5 
Total lease cost$13.0 $13.8 $40.0 $40.3 
(1) With the exception of Interest on lease liabilities, we record lease costs to Cost of sales or Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations, depending on the use of the leased asset. Interest on lease liabilities is recorded to Interest expense, net on the Condensed Consolidated Statements of Operations.
The following table details cash paid related to operating and finance leases included in our Condensed Consolidated Statements of Cash Flows and new ROU assets included in our Condensed Consolidated Balance Sheets:
Nine Months Ended
September 30,
(In millions)20222021
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - finance leases$4.2 $3.6 
Operating cash flows - operating leases$22.4 $22.5 
Financing cash flows - finance leases$7.7 $7.8 
ROU assets obtained in exchange for new finance lease liabilities$5.4 $4.7 
ROU assets obtained in exchange for new operating lease liabilities$29.7 $14.0 
Nine Months Ended
September 30,
20222021
Weighted average information:
Finance leases
Remaining lease term (in years)5.95.9
Discount rate4.7 %4.6 %
Operating leases
Remaining lease term (in years)4.44.4
Discount rate4.7 %4.7 %
Leases Leases
Lessor
SEE has contractual obligations as a lessor with respect to some of our automated and equipment solutions including "free on loan" equipment and leased equipment, both sales-type and operating. The consideration in a contract that contains both lease and non-lease components is allocated based on the standalone selling price.
Our contractual obligations for operating leases can include termination and renewal options. Our contractual obligations for sales-type leases tend to have fixed terms and can include purchase options. We utilize the reasonably certain threshold criteria in determining which options our customers will exercise.
All lease payments are primarily fixed in nature and therefore captured in the lease receivable. Our sales-type lease receivable balances at September 30, 2022 and December 31, 2021 were as follows:
(In millions)September 30, 2022December 31, 2021
Short-Term (12 months or less)$6.0 $5.7 
Long-Term16.8 18.8 
Lease receivables$22.8 $24.5 
Sales-type and operating lease revenue was less than 1% of net trade sales for the nine months ended September 30, 2022 and year ended December 31, 2021.
Lessee
SEE has contractual obligations as a lessee with respect to warehouses, offices and manufacturing facilities, IT equipment, automobiles, and material production equipment.
The following table details our lease obligations included in our Condensed Consolidated Balance Sheets.
(In millions)September 30, 2022December 31, 2021
Other non-current assets:
Finance leases - ROU assets$57.0 $58.0 
Finance leases - Accumulated depreciation(30.4)(27.3)
Operating lease right-of-use-assets:
Operating leases - ROU assets150.1 133.5 
Operating leases - Accumulated depreciation(80.0)(69.7)
Total lease assets$96.7 $94.5 
Current portion of long-term debt:
Finance leases$(8.4)(10.2)
Current portion of operating lease liabilities:
Operating leases (22.4)(21.2)
Long-term debt, less current portion:
Finance leases(17.5)(19.2)
Long-term operating lease liabilities, less current portion:
Operating leases(51.9)(44.5)
Total lease liabilities$(100.2)$(95.1)
At September 30, 2022, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows:
(In millions)Finance leasesOperating leases
Remainder of 2022$3.0 $6.9 
20238.4 24.1 
20244.2 17.8 
20252.7 13.2 
20262.1 10.0 
Thereafter10.1 11.0 
Total lease payments30.5 83.0 
Less: Interest(4.6)(8.7)
Present value of lease liabilities$25.9 $74.3 
The following lease cost is included in our Condensed Consolidated Statements of Operations:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2022202120222021
Lease cost(1)
Finance leases
Amortization of ROU assets$2.6 $2.7 $7.9 $7.9 
Interest on lease liabilities0.3 0.3 1.0 1.1 
Operating leases7.3 7.7 23.6 23.0 
Short-term lease cost0.9 1.3 2.2 3.8 
Variable lease cost1.9 1.8 5.3 4.5 
Total lease cost$13.0 $13.8 $40.0 $40.3 
(1) With the exception of Interest on lease liabilities, we record lease costs to Cost of sales or Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations, depending on the use of the leased asset. Interest on lease liabilities is recorded to Interest expense, net on the Condensed Consolidated Statements of Operations.
The following table details cash paid related to operating and finance leases included in our Condensed Consolidated Statements of Cash Flows and new ROU assets included in our Condensed Consolidated Balance Sheets:
Nine Months Ended
September 30,
(In millions)20222021
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - finance leases$4.2 $3.6 
Operating cash flows - operating leases$22.4 $22.5 
Financing cash flows - finance leases$7.7 $7.8 
ROU assets obtained in exchange for new finance lease liabilities$5.4 $4.7 
ROU assets obtained in exchange for new operating lease liabilities$29.7 $14.0 
Nine Months Ended
September 30,
20222021
Weighted average information:
Finance leases
Remaining lease term (in years)5.95.9
Discount rate4.7 %4.6 %
Operating leases
Remaining lease term (in years)4.44.4
Discount rate4.7 %4.7 %