Leases

12 Months Ended

Dec. 31, 2021

The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, and warehouses), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company's lease contracts is at the Company's sole discretion. Most real estate leases, in particular, include one or more options to renew, with renewal terms that can extend the lease term from one to 50 years. The Company's leases do not have any significant residual value guarantees or restrictive covenants.

The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at December 31, 2021 and December 31, 2020:


Classification	Balance Sheet Location	December 31, 2021		December 31, 2020
Lease Assets
Operating lease assets	Right of Use Asset - Operating Leases	$	268,390	$	296,020
Finance lease assets	Other Assets	55,826		36,267
Total lease assets		$	324,216	$	332,287

Lease Liabilities
Current operating lease liabilities	Accrued expenses and other	$	45,305	$	52,138
Current finance lease liabilities	Notes payable and current portion of long-term debt	6,952		4,663
Total current lease liabilities		$	52,257	$	56,801

Noncurrent operating lease liabilities	Noncurrent Operating Lease Liabilities	$	234,167	$	262,048
Noncurrent finance lease liabilities	Long-term Debt, net of current portion	53,330		33,280
Total noncurrent lease liabilities		$	287,497	$	295,328
Total lease liabilities		$	339,754	$	352,129

Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term.

The following table sets forth the components of the Company's total lease cost for the years ended December 31, 2021, 2020, and 2019:


Lease Cost		2021		2020		2019
Operating lease cost	(a)	$	48,158	$	58,678	$	61,845
Finance lease cost:
Amortization of lease asset	(a) (b)	5,747		7,387		6,965
Interest on lease liabilities	(c)	1,384		1,050		763
Variable lease cost	(a) (d)	26,198		36,758		51,616
Impairment charges	(e)	148		11,340		—
Total lease cost		$	81,635	$	115,213	$	121,189

(a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively.

(b) Included in depreciation and amortization.

(d) Also includes short term lease costs, which are deemed immaterial.

(e) Impairment charges are included in "Restructuring/asset impairment charges" in the Company's Consolidated Statements of Income. See Note 4 for more information.

The following table sets forth the five-year maturity schedule of the Company's lease liabilities as of December 31, 2021:


Maturity of Lease Liabilities	Operating Leases		Finance Leases		Total
2022	$	46,286	$	7,034	$	53,320
2023	42,665		7,249		49,914
2024	35,446		5,753		41,199
2025	29,366		5,032		34,398
2026	24,058		4,836		28,894
Beyond 2026	176,036		44,687		220,723
Total lease payments	$	353,857	$	74,591	$	428,448
Less: Interest	74,385		14,309		88,694
Lease Liabilities	$	279,472	$	60,282	$	339,754

With the January 2022 acquisition of Ball Metalpack, (see Note 20 - Subsequent Events), the annual maturity of lease liabilities is expected to increase.

The following tables set forth the Company's weighted average remaining lease term and discount rates used in the calculation of its outstanding lease liabilities at December 31, 2021, 2020, and 2019, along with other lease-related information for the years ended December 31, 2021, 2020, and 2019:


Lease Term and Discount Rate	2021		2020		2019
Weighted-average remaining lease term (years):
Operating leases	11.8		11.8		10.2
Finance leases	13.5		12.9		3.8
Weighted-average discount rate:
Operating leases	4.09%		4.28%		4.74%
Finance leases	2.86%		2.94%		2.97%

Other Information	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used by operating leases	$	50,479	$	58,305	$	61,532
Operating cash flows used by finance leases	$	1,384	$	1,050	$	763
Financing cash flows used by finance leases	$	4,699	$	7,437	$	7,989
Leased assets obtained in exchange for new operating lease liabilities	$	20,505	$	90,361	$	28,762
Leased assets obtained in exchange for new finance lease liabilities	$	14,643	$	23,117	$	24,106
Modification to leased assets for increase/(decrease) in operating lease liabilities	$	15,936	$	(9,947)	1,792
Modification to leased assets for increase/(decrease) in finance lease liabilities	$	9,586	$	14,005	(3,177)
Termination reclasses to decrease operating lease assets	$	(5,267)	$	(27,508)	(5,658)
Termination reclasses to decrease operating lease liabilities	$	(5,602)	$	(27,985)	(5,662)
Termination reclasses to decrease finance lease assets	$	(125)	$	(25,079)	(2,991)
Termination reclasses to decrease finance lease liabilities	$	(130)	$	(25,199)	(3,067)

Leases