The Company leases real properties for use as administrative and sales offices, in addition to transportation, office, and other equipment. The Company determines if a contract contains a lease arrangement at the inception of the contract. For leases in which the Company is the lessee, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition. Operating lease ROU assets are initially measured at the present value of lease payments over the lease term plus initial direct costs, if any. If a lease does not provide a discount rate and the rate

cannot be readily determined, an incremental borrowing rate is used to determine the present value of future lease payments. Lease and variable non-lease components within the Company’s lease agreements are accounted for separately. The Company has no material leases in which the Company is the lessor.

The Company’s leasing arrangements are classified as operating leases, for which expense is recognized on a straight-line basis. As of December 31, 2022 and 2021, total ROU assets were $122.4 million and $164.5 million, respectively, and operating lease liabilities were $161.3 million and $203.0 million, respectively. The ROU assets and operating lease liabilities are included in Other assets and Other liabilities, respectively, in the Company’s Consolidated Balance Sheets. Cash paid for operating lease liabilities is included in Cash flows from operating activities in the Company’s Consolidated Statements of Cash Flows. Operating lease costs, which are included in Total expenses in the Company’s Consolidated Statements of Income, were $40.3 million, $50.6 million, and $59.8 million for the years ended December 31, 2022, 2021, and 2020, respectively. Short-term and variable lease costs were not material for the years ended December 31, 2022, 2021, and 2020.

The Company’s leases have remaining terms from less than 1 year to nearly 9 years. Certain of these leases contain escalation provisions and/or renewal options, giving the Company the right to extend the lease by up to 10 years. However, a substantial majority of these options are not reflected in the calculation of the ROU asset and operating lease liability due to uncertainty surrounding the likelihood of renewal.

The following table summarizes the weighted-average lease terms and discount rates for operating lease liabilities:


	December 31, 2022			December 31, 2021
Weighted-average remaining lease term (in years)		6.4			6.8
Weighted-average discount rate		6.1	%		5.4	%

The following table represents maturities of operating lease liabilities as of December 31, 2022 (in millions):


	December 31, 2022
Due within 1 year	$	38.1
Due after 1 year through 2 years		32.4
Due after 2 years through 3 years		27.9
Due after 3 years through 4 years		23.2
Due after 4 years through 5 years		18.0
Due after 5 years		50.9
Total lease payments		190.5
Less imputed interest		(29.2	)
Total operating lease liabilities	$	161.3