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Leases | 12 Months Ended
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Dec. 31, 2021
Leases [Abstract] |
Leases | Leases Arrangements that explicitly or implicitly relate to property, plant and equipment are assessed at inception to determine if the arrangement is or contains a lease. Generally, we enter into operating leases as the lessee and recognize right-of-use assets and lease liabilities based on the present value of future lease payments over the lease term. We lease certain vehicles, equipment, manufacturing facilities, and non-manufacturing facilities. We have leases with both lease components and non-lease components, such as common area maintenance, utilities, or other repairs and maintenance. For all asset classes, we applied the practical expedient to account for each separate lease component and its associated non-lease component(s) as a single lease component. We identify variable lease payments, such as maintenance payments based on actual activities performed or costs incurred, at lease commencement by assessing the nature of the payment provisions, including whether the payments are subject to a minimum. Certain leases include options to renew for an additional term or company-controlled options to terminate. We generally determine it is not reasonably certain to assume the exercise of renewal options because there is no economic incentive to renew. As termination options often include penalties, we generally determine it is reasonably certain that termination options will not be exercised because there is an economic incentive not to terminate. Therefore, these options generally do not impact the lease term or the determination or classification of the right-of-use asset and lease liability. In the third quarter of 2017, we entered into a seven-year lease for a used airplane which includes a maximum residual value guarantee of $11.1 million if the fair value of the airplane is less than $14.4 million at the end of the lease term. We do not believe it is probable that any amount will be owed under this guarantee. Therefore, no amount related to the residual value guarantee is included in the lease payments used to measure the right-of-use asset and lease liability. We have not entered into any other leases where a residual value guarantee is provided to the lessor. Rental expense was $37.4 million, $39.5 million and $34.0 million for 2021, 2020 and 2019, respectively. We do not enter into arrangements where restrictions or covenants are imposed by the lessor that, for example, relate to incurring additional financial obligations. Furthermore, we also have not entered into any significant sublease arrangements. We use our collateralized incremental borrowing rate based on the information available at commencement date to determine the present value of future payments and the appropriate lease classification. The rate implicit in the lease is generally unknown, as we generally operate in the capacity of the lessee. Our Consolidated Balance Sheet includes the following related to leases:
(in millions) December 31, | Classification | 2021 | 2020
Assets |  |  |
Operating right-of-use assets | Other assets | $ | 96.5 |  | $ | 103.7 |
Liabilities |  |  |
Current lease liabilities | Accrued liabilities | $ | 22.5 |  | $ | 23.0 |
Long-term lease liabilities | Other liabilities | 79.3 |  | 86.4 |
Total lease liabilities |  | $ | 101.8 |  | $ | 109.4 |
The components of lease cost were as follows:
(in millions) December 31, | 2021 | 2020 | 2019
Operating lease cost | $ | 31.2 |  | $ | 32.4 |  | $ | 27.9 |
Variable lease cost | $ | 6.2 |  | $ | 7.1 |  | $ | 6.1 |
The weighted average remaining lease terms and discount rates for our operating leases were as follows:
December 31, | 2021 | 2020
Weighted-average remaining lease term - operating leases | 9.4 | 9.8
Weighted-average discount rate - operating leases | 3.6 | % | 3.8 | %
Supplemental cash flow information related to our operating leases was as follows for periods ended December 31, 2021 and 2020:
(in millions) December 31, | 2021 | 2020 | 2019
Cash paid for amounts included in measurement of operating lease liabilities - operating cash flows | $ | 26.8 |  | $ | 26.5 |  | $ | 24.3 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 17.0 |  | $ | 10.0 |  | $ | 21.0 |
Future minimum operating lease payments are as follows:
(in millions) | December 31, 2021
2022 | $ | 25.5 |
2023 | 22.7 |
2024 | 17.5 |
2025 | 13.8 |
2026 | 9.4 |
Thereafter | 48.2 |
Total future minimum operating lease payments | $ | 137.1 |
Imputed interest | 35.3 |
Present value of lease liabilities reported | $ | 101.8 |

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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 http://asc.fasb.org/subtopic&trid=77888251 + Details
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