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LEASING ARRANGEMENTS | 12 Months Ended
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Dec. 31, 2022
Leases [Abstract] |
LEASING ARRANGEMENTS | Note 7 — LEASING ARRANGEMENTS We lease certain manufacturing facilities, warehouse space, machinery and equipment, vehicles and information technology equipment under operating leases. The majority of our leases are operating leases. Finance leases are immaterial to our consolidated financial statements. Operating lease assets and obligations are reflected within Operating lease assets, net, Current operating lease obligations, and Non-current operating lease obligations, respectively. Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The components of lease cost from continued operations recognized within our Consolidated Statements of Income for the twelve months ended December 31, 2022, 2021 and 2020 were as follows:
(In millions) |  | 2022 |  | 2021 |  | 2020
Cost of sales |  | $ | 18.8 |  |  | $ | 20.1 |  |  | $ | 19.2 |
Selling and administrative expense |  | 10.1 |  | 9.3 |  |  | 11.0 |
Total Operating lease cost |  | $ | 28.9 |  |  | $ | 29.4 |  |  | $ | 30.2 |
We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at our sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for our operating leases as of December 31, 2022 and 2021 was 5.7 years and 4.7 years, respectively. The non-cash net increase in operating lease liabilities was $13.8 million, $8.3 million and $10.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. The discount rate implicit within our leases is generally not determinable and, therefore, the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for our leases is determined based on lease term and currency in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rate used to measure our operating lease liabilities as of December 31, 2022 and 2021 were 4.8% and 3.8%, respectively. Future minimum lease payments under non-cancelable operating leases with initial lease terms longer than one year as of December 31, 2022 are as follows: Maturity Analysis of Lease Liabilities:
(in millions) |  | 2022 |  |
2023 |  | $ | 19.6 |  |  |
2024 |  | 12.8 |  |  |
2025 |  | 8.2 |  |  |
2026 |  | 6.1 |  |  |
2027 |  | 5.3 |  |  |
Thereafter |  | 12.7 |  |  |
Total |  | $ | 64.7 |  |  |
Less amount of lease payment representing interest |  | (6.8) |  |  |
Total present value of lease payments |  | $ | 57.9 |  |  |

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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 + Details
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