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Leases | 12 Months Ended
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Dec. 31, 2022
Leases [Abstract] |
Leases | 11. Leases Operating lease right-of-use-assets and assets held under finance leases are recognized in the Consolidated Balance Sheets within Other assets and Property, plant and equipment, net, respectively. Operating lease liabilities and finance lease liabilities are recognized in the Consolidated Balance Sheets within Other liabilities and Debt obligations, respectively. As of the dates indicated, lease right-of-use assets and lease liabilities consisted of the following (in millions):
|  | December 31,
|  | 2022 |  | 2021
Right-of-use assets: |  |  |  |
Operating lease (Other assets) |  | $ | 65.8 |  |  | $ | 69.6 |
Finance lease (Property, plant and equipment, net) |  | 2.1 |  |  | 0.2 |
Total right-of-use assets |  | $ | 67.9 |  |  | $ | 69.8 |
Lease liabilities: |  |  |  |
Current portion of operating lease (Other current liabilities) |  | $ | 17.1 |  |  | $ | 15.5 |
Non-current portion of operating lease (Other liabilities) |  | 53.8 |  |  | 58.5 |
Finance lease (Debt obligations) |  | 2.1 |  |  | 0.1 |
Total lease liabilities |  | $ | 73.0 |  |  | $ | 74.1 |
The tables below present financial information associated with the Company's leases. The information is presented as of, and for the years ended December 31, 2022 and 2021. The Company has entered into operating and finance lease agreements primarily for land, office space, equipment and vehicles, expiring between 2023 and 2045. For the year ended December 31, 2022, the Company recorded impairment charges to right-of-use assets of $0.5 million, which are reflected in Other operating loss, related to FCC licenses impaired. In addition, for the year ended December 31, 2021, the Company recorded an impairment of the right-of-use-assets totaling $2.1 million, which is reflected in Other operating loss. For the years ended December 31, 2022 and 2021, the Company recorded short-term lease costs totaling $34.8 million and $19.2 million, respectively. The Company is expected to incur $10.8 million future short-term lease costs for the year ended December 31, 2023. The following table summarizes the components of lease expense for the periods indicated (in millions):
|  |  |  | Years Ended December 31,
|  |  |  |  |  | 2022 |  | 2021
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  |  | $ | 0.2 |  |  | $ | 0.8 |
Interest on lease liabilities |  |  |  |  |  | 0.1 |  |  | — |
Net finance lease cost |  |  |  |  |  | 0.3 |  |  | 0.8 |
Operating lease cost |  |  |  |  |  | 23.5 |  |  | 21.7 |
Variable lease cost |  |  |  |  |  | 0.6 |  |  | 0.5 |
Sublease income |  |  |  |  |  | (0.7) |  |  | (0.5) |
Total lease cost |  |  |  |  |  | $ | 23.7 |  |  | $ | 22.5 |
Cash flow information related to leases for the periods indicated is as follows (in millions):
|  |  |  | Years Ended December 31,
|  |  |  |  |  | 2022 |  | 2021
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from finance leases |  |  |  |  |  | $ | 0.1 |  |  | $ | — |
Financing cash flows from finance leases |  |  |  |  |  | $ | 0.2 |  |  | $ | 0.7 |
Operating cash flows from operating leases |  |  |  |  |  | $ | 23.3 |  |  | $ | 21.9 |
Right-of-use assets obtained in exchange for new lease liabilities: |  |  |  |  |  |  |  |
Finance leases |  |  |  |  |  | $ | 2.2 |  |  | $ | 0.1 |
Operating leases |  |  |  |  |  | $ | 15.0 |  |  | $ | 48.3 |
The weighted-average remaining lease term and the weighted-average discount rate for finance leases and operating leases for the periods presented are as follows:
|  | Years Ended December 31,
|  | 2022 |  | 2021
Weighted-average remaining lease term (years) - operating leases |  | 7.5 |  | 7.5
Weighted-average remaining lease term (years) - finance leases |  | 1.4 |  | 2.3
Weighted-average discount rate - operating leases |  | 5.3 | % |  | 5.4 | %
Weighted-average discount rate - finance leases |  | 5.7 | % |  | 4.2 | %
As of December 31, 2022, undiscounted cash flows for finance and operating leases are as follows (in millions):
| Operating Leases |  | Finance Leases
2023 | $ | 20.0 |  |  | $ | 1.8 |
2024 | 14.3 |  |  | 0.3 |
2025 | 10.8 |  |  | 0.1 |
2026 | 7.4 |  |  | — |
2027 | 5.2 |  |  | — |
Thereafter | 28.6 |  |  | — |
Total future lease payments | 86.3 |  |  | 2.2 |
Less: Present values | (15.4) |  |  | (0.1) |
Total lease liability balance | $ | 70.9 |  |  | $ | 2.1 |
In November 2021, INNOVATE Corp. entered into a ten-year lease agreement for a special purpose space in Palm Beach, Florida. The new lease has not yet commenced, but will require future monthly lease payments of approximately $0.2 million over the entire lease term and yearly common area maintenance charges of $0.6 million, both of which are subject to 3% annual upward adjustments, with total square footage of 20,950. The lease also provides for the Company to receive an allowance from the landlord of $2.1 million to be used toward costs to design, engineer, install, supply and construct improvements (the "Construction Allowance"), payable at the end of the construction period, of which $0.8 million is included in prepaid rent in Other Assets as of December 31, 2022. The future lease payments and remaining unexpended amounts under the allowance are not yet recorded on our Consolidated Balance Sheet. We expect the accounting lease commencement date for this initial portion of the lease for financial reporting purposes to begin in 2024. Subsequent to December 31, 2022, the lease agreement was amended to extend the term of the lease to 15 years and to increase the Construction Allowance to a total of $4.4 million. In December 2021, the Company entered into a five-year lease agreement with an option to extend the lease for another five years for office space in West Palm Beach, Florida. The new lease has not commenced yet, but will require future monthly lease payments of approximately $0.1 million over the entire lease term, subject to 3% annual upward adjustment, with total square footage of 15,786. Other than a $0.2 million deposit included in Other Assets, the future lease payments are not yet recorded on our Consolidated Balance Sheets, as the building is still under construction. We expect the accounting lease commencement date for this initial portion of the lease for financial reporting purposes to begin in 2024.
Leases | 11. Leases Operating lease right-of-use-assets and assets held under finance leases are recognized in the Consolidated Balance Sheets within Other assets and Property, plant and equipment, net, respectively. Operating lease liabilities and finance lease liabilities are recognized in the Consolidated Balance Sheets within Other liabilities and Debt obligations, respectively. As of the dates indicated, lease right-of-use assets and lease liabilities consisted of the following (in millions):
|  | December 31,
|  | 2022 |  | 2021
Right-of-use assets: |  |  |  |
Operating lease (Other assets) |  | $ | 65.8 |  |  | $ | 69.6 |
Finance lease (Property, plant and equipment, net) |  | 2.1 |  |  | 0.2 |
Total right-of-use assets |  | $ | 67.9 |  |  | $ | 69.8 |
Lease liabilities: |  |  |  |
Current portion of operating lease (Other current liabilities) |  | $ | 17.1 |  |  | $ | 15.5 |
Non-current portion of operating lease (Other liabilities) |  | 53.8 |  |  | 58.5 |
Finance lease (Debt obligations) |  | 2.1 |  |  | 0.1 |
Total lease liabilities |  | $ | 73.0 |  |  | $ | 74.1 |
The tables below present financial information associated with the Company's leases. The information is presented as of, and for the years ended December 31, 2022 and 2021. The Company has entered into operating and finance lease agreements primarily for land, office space, equipment and vehicles, expiring between 2023 and 2045. For the year ended December 31, 2022, the Company recorded impairment charges to right-of-use assets of $0.5 million, which are reflected in Other operating loss, related to FCC licenses impaired. In addition, for the year ended December 31, 2021, the Company recorded an impairment of the right-of-use-assets totaling $2.1 million, which is reflected in Other operating loss. For the years ended December 31, 2022 and 2021, the Company recorded short-term lease costs totaling $34.8 million and $19.2 million, respectively. The Company is expected to incur $10.8 million future short-term lease costs for the year ended December 31, 2023. The following table summarizes the components of lease expense for the periods indicated (in millions):
|  |  |  | Years Ended December 31,
|  |  |  |  |  | 2022 |  | 2021
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  |  | $ | 0.2 |  |  | $ | 0.8 |
Interest on lease liabilities |  |  |  |  |  | 0.1 |  |  | — |
Net finance lease cost |  |  |  |  |  | 0.3 |  |  | 0.8 |
Operating lease cost |  |  |  |  |  | 23.5 |  |  | 21.7 |
Variable lease cost |  |  |  |  |  | 0.6 |  |  | 0.5 |
Sublease income |  |  |  |  |  | (0.7) |  |  | (0.5) |
Total lease cost |  |  |  |  |  | $ | 23.7 |  |  | $ | 22.5 |
Cash flow information related to leases for the periods indicated is as follows (in millions):
|  |  |  | Years Ended December 31,
|  |  |  |  |  | 2022 |  | 2021
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from finance leases |  |  |  |  |  | $ | 0.1 |  |  | $ | — |
Financing cash flows from finance leases |  |  |  |  |  | $ | 0.2 |  |  | $ | 0.7 |
Operating cash flows from operating leases |  |  |  |  |  | $ | 23.3 |  |  | $ | 21.9 |
Right-of-use assets obtained in exchange for new lease liabilities: |  |  |  |  |  |  |  |
Finance leases |  |  |  |  |  | $ | 2.2 |  |  | $ | 0.1 |
Operating leases |  |  |  |  |  | $ | 15.0 |  |  | $ | 48.3 |
The weighted-average remaining lease term and the weighted-average discount rate for finance leases and operating leases for the periods presented are as follows:
|  | Years Ended December 31,
|  | 2022 |  | 2021
Weighted-average remaining lease term (years) - operating leases |  | 7.5 |  | 7.5
Weighted-average remaining lease term (years) - finance leases |  | 1.4 |  | 2.3
Weighted-average discount rate - operating leases |  | 5.3 | % |  | 5.4 | %
Weighted-average discount rate - finance leases |  | 5.7 | % |  | 4.2 | %
As of December 31, 2022, undiscounted cash flows for finance and operating leases are as follows (in millions):
| Operating Leases |  | Finance Leases
2023 | $ | 20.0 |  |  | $ | 1.8 |
2024 | 14.3 |  |  | 0.3 |
2025 | 10.8 |  |  | 0.1 |
2026 | 7.4 |  |  | — |
2027 | 5.2 |  |  | — |
Thereafter | 28.6 |  |  | — |
Total future lease payments | 86.3 |  |  | 2.2 |
Less: Present values | (15.4) |  |  | (0.1) |
Total lease liability balance | $ | 70.9 |  |  | $ | 2.1 |
In November 2021, INNOVATE Corp. entered into a ten-year lease agreement for a special purpose space in Palm Beach, Florida. The new lease has not yet commenced, but will require future monthly lease payments of approximately $0.2 million over the entire lease term and yearly common area maintenance charges of $0.6 million, both of which are subject to 3% annual upward adjustments, with total square footage of 20,950. The lease also provides for the Company to receive an allowance from the landlord of $2.1 million to be used toward costs to design, engineer, install, supply and construct improvements (the "Construction Allowance"), payable at the end of the construction period, of which $0.8 million is included in prepaid rent in Other Assets as of December 31, 2022. The future lease payments and remaining unexpended amounts under the allowance are not yet recorded on our Consolidated Balance Sheet. We expect the accounting lease commencement date for this initial portion of the lease for financial reporting purposes to begin in 2024. Subsequent to December 31, 2022, the lease agreement was amended to extend the term of the lease to 15 years and to increase the Construction Allowance to a total of $4.4 million. In December 2021, the Company entered into a five-year lease agreement with an option to extend the lease for another five years for office space in West Palm Beach, Florida. The new lease has not commenced yet, but will require future monthly lease payments of approximately $0.1 million over the entire lease term, subject to 3% annual upward adjustment, with total square footage of 15,786. Other than a $0.2 million deposit included in Other Assets, the future lease payments are not yet recorded on our Consolidated Balance Sheets, as the building is still under construction. We expect the accounting lease commencement date for this initial portion of the lease for financial reporting purposes to begin in 2024.

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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 + Details
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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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