XML 43 R26.htm IDEA: XBRL DOCUMENT
v3.23.2

Leases | 6 Months Ended
--- | ---
Jun. 30, 2023
Leases [Abstract] |
Leases | Leases The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from one to fifteen years, along with options that permit renewals for additional periods. The Company also leases certain equipment under non-cancelable operating leases, with initial terms typically ranging from one to five years. Minimum rent is expensed on a straight-line basis over the term of the lease. The following table presents operating lease right-of-use assets and lease liabilities.
(Dollars in Millions) |  | Jun 30, 2023 |  | Dec 31, 2022
Operating Lease Right-of-Use Assets |  | $ | 37.5 |  |  | $ | 45.1 |
Operating Lease Liabilities |  | 61.8 |  |  | 72.6 |
Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statements of Loss. Additional information regarding the Company’s lease cost is presented below.
|  | Six Months Ended |  | Three Months Ended
(Dollars in Millions) |  | Jun 30, 2023 |  | Jun 30, 2022 |  | Jun 30, 2023 |  | Jun 30, 2022
Lease Cost: |  |  |  |  |  |  |  |
Operating Lease Cost |  | $ | 7.9 |  |  | $ | 11.4 |  |  | $ | 3.8 |  |  | $ | 5.8 |
Variable Lease Cost |  | 2.2 |  |  | 0.1 |  |  | 2.1 |  |  | — |
Short-Term Lease Cost 1 |  | 0.8 |  |  | 2.2 |  |  | 0.8 |  |  | 1.0 |
Total Lease Expense |  | $ | 10.9 |  |  | $ | 13.7 |  |  | $ | 6.7 |  |  | $ | 6.8 |
Less: Sub-Lease Income |  | — |  |  | 0.1 |  |  | — |  |  | — |
Total Lease Cost |  | $ | 10.9 |  |  | $ | 13.6 |  |  | $ | 6.7 |  |  | $ | 6.8 |
1 Leases with an initial term of twelve months or less are not recorded on the Condensed Consolidated Balance Sheets. Other Information on Operating Leases Supplemental cash flow information related to the Company’s operating leases for the six months ended June 30, 2023 and 2022 is as follows:
|  | Six Months Ended
(Dollars in Millions) |  | Jun 30, 2023 |  | Jun 30, 2022
Operating Cash Flows from Operating Lease (Fixed Payments) |  | $ | 13.4 |  |  | $ | 12.7 |
Operating Cash Flows from Operating Lease (Liability Reduction) |  | 12.2 |  |  | 11.3 |
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities |  | 2.4 |  |  | 6.6 |
As of June 30, 2023, the Company does not have any finance leases. Significant judgments and assumptions for determining lease asset and liability at June 30, 2023 and 2022 are presented below.
|  | Six Months Ended
|  | Jun 30, 2023 |  | Jun 30, 2022
Weighted-average Remaining Lease Term - Finance Leases |  | N/A |  | 0.6 years
Weighted-average Remaining Lease Term - Operating Leases |  | 5.6 years |  | 5.7 years
Weighted-average Discount Rate - Finance Leases |  | N/A |  | 0.6 | %
Weighted-average Discount Rate - Operating Leases |  | 3.7 | % |  | 3.4 | %
Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments. Note 18 - Leases (Continued) Future minimum lease payments under operating leases at June 30, 2023 are presented below. There are no significant future minimum lease payments under finance leases.
(Dollars in Millions) |  |  |  | Jun 30, 2023
Remainder of 2023 |  |  |  | $ | 12.1 |
2024 |  |  |  | 18.5 |
2025 |  |  |  | 13.3 |
2026 |  |  |  | 6.7 |
2027 |  |  |  | 4.6 |
2028 and Thereafter |  |  |  | 18.4 |
Total Future Payments |  |  |  | $ | 73.6 |
Less Imputed Interest |  |  |  | 11.8 |
Present Value of Minimum Lease Payments |  |  |  | $ | 61.8 |
Leases | Leases The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from one to fifteen years, along with options that permit renewals for additional periods. The Company also leases certain equipment under non-cancelable operating leases, with initial terms typically ranging from one to five years. Minimum rent is expensed on a straight-line basis over the term of the lease. The following table presents operating lease right-of-use assets and lease liabilities.
(Dollars in Millions) |  | Jun 30, 2023 |  | Dec 31, 2022
Operating Lease Right-of-Use Assets |  | $ | 37.5 |  |  | $ | 45.1 |
Operating Lease Liabilities |  | 61.8 |  |  | 72.6 |
Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statements of Loss. Additional information regarding the Company’s lease cost is presented below.
|  | Six Months Ended |  | Three Months Ended
(Dollars in Millions) |  | Jun 30, 2023 |  | Jun 30, 2022 |  | Jun 30, 2023 |  | Jun 30, 2022
Lease Cost: |  |  |  |  |  |  |  |
Operating Lease Cost |  | $ | 7.9 |  |  | $ | 11.4 |  |  | $ | 3.8 |  |  | $ | 5.8 |
Variable Lease Cost |  | 2.2 |  |  | 0.1 |  |  | 2.1 |  |  | — |
Short-Term Lease Cost 1 |  | 0.8 |  |  | 2.2 |  |  | 0.8 |  |  | 1.0 |
Total Lease Expense |  | $ | 10.9 |  |  | $ | 13.7 |  |  | $ | 6.7 |  |  | $ | 6.8 |
Less: Sub-Lease Income |  | — |  |  | 0.1 |  |  | — |  |  | — |
Total Lease Cost |  | $ | 10.9 |  |  | $ | 13.6 |  |  | $ | 6.7 |  |  | $ | 6.8 |
1 Leases with an initial term of twelve months or less are not recorded on the Condensed Consolidated Balance Sheets. Other Information on Operating Leases Supplemental cash flow information related to the Company’s operating leases for the six months ended June 30, 2023 and 2022 is as follows:
|  | Six Months Ended
(Dollars in Millions) |  | Jun 30, 2023 |  | Jun 30, 2022
Operating Cash Flows from Operating Lease (Fixed Payments) |  | $ | 13.4 |  |  | $ | 12.7 |
Operating Cash Flows from Operating Lease (Liability Reduction) |  | 12.2 |  |  | 11.3 |
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities |  | 2.4 |  |  | 6.6 |
As of June 30, 2023, the Company does not have any finance leases. Significant judgments and assumptions for determining lease asset and liability at June 30, 2023 and 2022 are presented below.
|  | Six Months Ended
|  | Jun 30, 2023 |  | Jun 30, 2022
Weighted-average Remaining Lease Term - Finance Leases |  | N/A |  | 0.6 years
Weighted-average Remaining Lease Term - Operating Leases |  | 5.6 years |  | 5.7 years
Weighted-average Discount Rate - Finance Leases |  | N/A |  | 0.6 | %
Weighted-average Discount Rate - Operating Leases |  | 3.7 | % |  | 3.4 | %
Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments. Note 18 - Leases (Continued) Future minimum lease payments under operating leases at June 30, 2023 are presented below. There are no significant future minimum lease payments under finance leases.
(Dollars in Millions) |  |  |  | Jun 30, 2023
Remainder of 2023 |  |  |  | $ | 12.1 |
2024 |  |  |  | 18.5 |
2025 |  |  |  | 13.3 |
2026 |  |  |  | 6.7 |
2027 |  |  |  | 4.6 |
2028 and Thereafter |  |  |  | 18.4 |
Total Future Payments |  |  |  | $ | 73.6 |
Less Imputed Interest |  |  |  | 11.8 |
Present Value of Minimum Lease Payments |  |  |  | $ | 61.8 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration