Company: UIS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000746838-25-000008
Chunk: 117

Company: UNISYS CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 117
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 expense arising from fixed lease payments (operating leases) or amortization of the ROU asset (finance leases).The company uses the long-lived assets impairment guidance in ASC Subtopic 360-10 Property, Plant, and Equipment to determine whether a ROU asset is impaired, and if so, the amount of the impairment loss to recognize. If impaired, ROU assets for operating and finance leases are reduced for any impairment losses. The company monitors for events or changes in circumstances that require a reassessment of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in the consolidated statement of income (loss).The company has commitments under operating leases for certain facilities and equipment used in its operations. The company also has finance leases for equipment. The company’s leases generally have initial lease terms ranging from 1 year to 8 years, most of which include options to extend or renew the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year. Certain lease agreements contain provisions for future rent increases. 

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The components of lease expense are as follows:Year ended December 31,202420232022Operating lease cost$22.8 $26.0 $36.7 Finance lease costAmortization of right-of-use assets0.1 0.2 1.2 Total finance lease cost0.1 0.2 1.2 Short-term lease costs0.5 0.7 0.7 Variable lease cost12.7 10.3 11.6 Sublease income(0.5)(1.1)(1.8)Total lease cost$35.6 $36.1 $48.4 Supplemental balance sheet information related to leases is as follows:As of December 31,20242023Operating LeasesOperating lease right-of-use assets$38.4 $35.4 Other accrued liabilities15.0 19.1 Long-term operating lease liabilities28.9 25.6 Total operating lease liabilities$43.9 $44.7 Finance LeasesOutsourcing assets, net$— $0.