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Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Leases

The Company leases real estate, office equipment and service vehicles. The Company's leases have remaining lease terms of up to 16 years, some of which include options to extend the leases for up to 20 years. The Company determines the lease term used to record each lease by including the initial lease term and, in the case where there are options to extend, will include the option to extend if it has determined that it reasonably certain that the Company would exercise those options.

The Company also leases certain equipment that it rents to its customers where the payments vary based upon the amount of time the equipment is on rent. There are no fixed payments on these leases and, therefore, no lease liability or ROU assets have been recorded. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term.

The components of lease expense consist of the following (in millions):

									Year Ended December 31,
			Classification						2022						2021
Operating lease cost(a)			Direct operating						$	140.7					$	115.0
Finance lease cost:
Amortization of ROU assets			Depreciation and amortization						22.0						14.5
Interest on lease liabilities			Interest expense, net						1.6						1.3
Sublease income			Equipment rental revenue						(84.4)						(72.5)
Net lease cost									$	79.9					$	58.3

(a) Includes short-term leases of $72.5 million and $58.6 million for the year ended December 31, 2022 and December 31, 2021, respectively, and variable lease costs of $2.8 million and $5.1 million for the year ended December 31, 2022 and December 31, 2021, respectively.

Balance sheet information related to leases consists of the following (in millions):

			Classification						December 31, 2022						December 31, 2021
Assets
Operating lease ROU assets			Right-of-use assets						$	552.0					$	413.7
Finance lease ROU assets			Property and equipment, net(a)						63.5						52.0
Total leased assets									$	615.5					$	465.7
Liabilities
Current
Operating			Current maturities of operating lease liabilities						$	41.9					$	38.7
Finance			Current maturities of long-term debt and financing obligations						12.1						11.4
Non-current
Operating			Operating lease liabilities						527.7						387.4
Finance			Long-term debt, net						52.4						41.2
Total lease liabilities									$	634.1					$	478.7

(a) Finance lease right-of-use assets are recorded net of accumulated amortization of $36.0 million and $30.8 million for the year ended December 31, 2022 and December 31, 2021, respectively.

			Years Ended December 31,
			2022						2021
Weighted average remaining lease term:
Operating leases			15.7						14.0
Finance leases			5.5						5.4
Weighted average discount rate:
Operating leases			3.29		%				2.94		%
Finance leases			3.35		%				2.78		%

Cash flow information related to leases consists of the following (in millions):

						Years Ended December 31,
						2022						2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	45.8					$	39.7
Operating cash flows from finance leases						1.6						1.3
Financing cash flows from finance leases						11.6						9.6
Right-of-use assets obtained in exchange for lease obligations:
Operating leases						238.9						268.5
Finance leases						24.1						22.5

Maturities of lease liabilities are as follows (in millions):

			Operating Leases						Finance Leases
2023			$	59.3					$	14.0
2024			61.8						13.3
2025			55.8						13.1
2026			52.9						11.7
2027			49.0						7.2
Thereafter			468.2						11.6
Total lease payments			747.0						70.9
Less: Interest			(177.4)						(6.4)
Present value of lease liabilities			$	569.6					$	64.5

Leases

Leases

The Company leases real estate, office equipment and service vehicles. The Company's leases have remaining lease terms of up to 16 years, some of which include options to extend the leases for up to 20 years. The Company determines the lease term used to record each lease by including the initial lease term and, in the case where there are options to extend, will include the option to extend if it has determined that it reasonably certain that the Company would exercise those options.

The Company also leases certain equipment that it rents to its customers where the payments vary based upon the amount of time the equipment is on rent. There are no fixed payments on these leases and, therefore, no lease liability or ROU assets have been recorded. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term.

The components of lease expense consist of the following (in millions):

									Year Ended December 31,
			Classification						2022						2021
Operating lease cost(a)			Direct operating						$	140.7					$	115.0
Finance lease cost:
Amortization of ROU assets			Depreciation and amortization						22.0						14.5
Interest on lease liabilities			Interest expense, net						1.6						1.3
Sublease income			Equipment rental revenue						(84.4)						(72.5)
Net lease cost									$	79.9					$	58.3

(a) Includes short-term leases of $72.5 million and $58.6 million for the year ended December 31, 2022 and December 31, 2021, respectively, and variable lease costs of $2.8 million and $5.1 million for the year ended December 31, 2022 and December 31, 2021, respectively.

Balance sheet information related to leases consists of the following (in millions):

			Classification						December 31, 2022						December 31, 2021
Assets
Operating lease ROU assets			Right-of-use assets						$	552.0					$	413.7
Finance lease ROU assets			Property and equipment, net(a)						63.5						52.0
Total leased assets									$	615.5					$	465.7
Liabilities
Current
Operating			Current maturities of operating lease liabilities						$	41.9					$	38.7
Finance			Current maturities of long-term debt and financing obligations						12.1						11.4
Non-current
Operating			Operating lease liabilities						527.7						387.4
Finance			Long-term debt, net						52.4						41.2
Total lease liabilities									$	634.1					$	478.7

(a) Finance lease right-of-use assets are recorded net of accumulated amortization of $36.0 million and $30.8 million for the year ended December 31, 2022 and December 31, 2021, respectively.

			Years Ended December 31,
			2022						2021
Weighted average remaining lease term:
Operating leases			15.7						14.0
Finance leases			5.5						5.4
Weighted average discount rate:
Operating leases			3.29		%				2.94		%
Finance leases			3.35		%				2.78		%

Cash flow information related to leases consists of the following (in millions):

						Years Ended December 31,
						2022						2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	45.8					$	39.7
Operating cash flows from finance leases						1.6						1.3
Financing cash flows from finance leases						11.6						9.6
Right-of-use assets obtained in exchange for lease obligations:
Operating leases						238.9						268.5
Finance leases						24.1						22.5

Maturities of lease liabilities are as follows (in millions):

			Operating Leases						Finance Leases
2023			$	59.3					$	14.0
2024			61.8						13.3
2025			55.8						13.1
2026			52.9						11.7
2027			49.0						7.2
Thereafter			468.2						11.6
Total lease payments			747.0						70.9
Less: Interest			(177.4)						(6.4)
Present value of lease liabilities			$	569.6					$	64.5

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- References

No definition available.

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- 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 https://asc.fasb.org/subtopic&trid=77888251

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- 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 https://asc.fasb.org/subtopic&trid=77888251

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