Operating Leases
The Company has various operating lease agreements, primarily for real estate offices. Such leases have remaining lease terms of 1 year to 7 years, some of which may include options to extend certain leases for up to an additional 10 years.
The components of lease expense were as follows:
| | | | | | | | | | | | | | |
| ($ in millions) | | Years Ended December 31, |
| | 2022 | | 2021 |
| Operating lease cost | | $ | 4.3 | | | $ | 4.3 | |
| Short-term lease cost | | 0.8 | | | 0.1 | |
| Total lease cost | | $ | 5.1 | | | $ | 4.4 | |
Supplemental cash flow information related to operating leases was as follows:
| | | | | | | | | | | | | | |
| ($ in millions) | | Years Ended December 31, |
| | 2022 | | 2021 |
| Cash paid for amounts included in the measurement of lease liabilities | | $ | 4.2 | | | $ | 4.3 | |
Supplemental balance sheet information related to operating leases were as follows:
| | | | | | | | | | | | | | |
| ($ in millions, except lease term and discount rate) | | December 31, |
| | 2022 | | 2021 |
| Assets | | | | |
Right of use assets, included in Other assets | | $ | 11.6 | | | $ | 9.0 | |
| Liabilities | | | | |
Operating lease liabilities, included in Other liabilities | | $ | 12.2 | | | $ | 10.0 | |
| | | | |
| Weighted average remaining lease term | | 6.1 | | 3.1 |
| Weighted average discount rate | | 4.0 | % | | 3.7 | % |
Future minimum lease payments under non-cancellable operating leases as of December 31, 2022 are as follows:
| | | | | | | | |
| ($ in millions) | | |
| Year Ending December 31, | | |
| 2023 | | $ | 3.8 | |
| 2024 | | 3.0 | |
| 2025 | | 1.7 | |
| 2026 | | 0.8 | |
| 2027 | | 0.8 | |
| Thereafter | | 3.9 | |
| Total future minimum lease payments | | 14.0 | |
| Less imputed interest | | (1.8) | |
| Total | | $ | 12.2 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.