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Leasing | 3 Months Ended
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Mar. 31, 2019
Leasing [Abstract] |
Leases of Lessee Disclosure [Text Block] |
2. | LEASING
On January 1, 2019, we adopted new accounting guidance under Accounting Standards Codification Topic 842 (ASC 842) Leases. ASC 842 superseded prior lease accounting guidance and established new criteria for recognizing right-of-use assets and lease liabilities for operating lease arrangements on our Condensed Consolidated Balance Sheet. We elected to adopt this guidance utilizing the optional transition method that allowed us to not retrospectively revise prior period balance sheets to include operating leases, and to only include the disclosures required under ASC 842 for the periods subsequent to adoption. We have concluded that when an agreement grants us the right to substantially all of the economic benefits associated with an identified asset, and we are able to direct the use of that asset throughout the term of the agreement, we have a lease. We lease certain facilities and furniture under finance leases, and we also lease certain commercial office and production facilities, manufacturing machinery and equipment, vehicles and other assets under operating leases. Some of our leases include options to extend or terminate the leases and these options have been included in the relevant lease term to the extent that they are reasonably certain to be exercised. The lease consideration for some of our facilities and machinery and equipment is variable, as it is based on various indices or usage of the underlying assets, respectively. Variable lease payments based on indices have been included in the related right-of-use assets and lease liabilities on our Condensed Consolidated Balance Sheet, while variable lease payments based on usage of the underlying asset have been excluded as they do not represent present rights or obligations. Lease cost consists of the following:
|  | Three Months Ended
|  | March 31,
|  | 2019
|  | (in millions)
Finance lease cost |  |
Amortization of right-of-use assets |  | $ | 0.2 |
Interest on lease liabilities |  | 0.1 |
Total finance lease cost |  | 0.3 |
Operating lease cost |  | 6.7 |
Short-term lease cost |  | 1.7 |
Variable lease cost |  | 1.9 |
Total lease cost |  | $ | 10.6 |
For the three months ended March 31, 2019, $7.8 million and $2.5 million were recorded to Cost of goods sold and Selling, general and administrative expense, respectively, on our Condensed Consolidated Statement of Income, as compared to $7.1 million and $2.6 million, respectively, for the three months ended March 31, 2018. The following table summarizes additional information related to our lease agreements.
|  | Three Months Ended
|  | March 31,
|  | 2019
|  | (in millions, except lease term and rate)
Cash paid for amounts included in measurement of lease liabilities |  |
Operating cash flows from finance leases |  | $ | 0.1 |
Operating cash flows from operating leases |  | 6.9 |
Financing cash flows from finance leases |  | 0.2 |
Weighted-average remaining lease term - finance leases |  | 3.1 years |
Weighted-average remaining lease term - operating leases |  | 5.1 years |
Weighted-average discount rate - finance leases |  | 8.2 | %
Weighted-average discount rate - operating leases |  | 6.3 | %
As the rate implicit in the lease is typically unknown, the discount rate used to determine the lease liability for the majority of our leases is the collateralized incremental borrowing rate in the applicable geographic area for a similar term and amount as the lease agreement. Future undiscounted minimum payments under non-cancelable leases are as follows:
|  | Finance Leases |  | Operating Leases
|  | (in millions)
2019 (excluding the three months ended March 31, 2019) |  | $ | 0.8 |  |  | $ | 20.1 |
2020 |  | 1.1 |  |  | 24.5 |
2021 |  | 1.0 |  |  | 16.4 |
2022 |  | 0.8 |  |  | 12.8 |
2023 |  | — |  |  | 7.6 |
Thereafter |  | — |  |  | 19.0 |
Total future undiscounted minimum lease payments |  | 3.7 |  |  | 100.4 |
Less: Impact of discounting |  | (0.5 | ) |  | (16.6 | )
Total |  | $ | 3.2 |  |  | $ | 83.8 |
For the full year 2019, we expect payments for short-term leases to be approximately $5 million. The right-of-use assets and lease liabilities recorded on our Condensed Consolidated Balance Sheet as of March 31, 2019 are as follows:
|  | Finance Leases |  | Operating Leases
|  | (in millions)
Property, plant and equipment |  | $ | 3.2 |  |  | $ | — |
Other assets and deferred charges |  | — |  |  | 84.1 |
Total |  | $ | 3.2 |  |  | $ | 84.1 |
Accrued expenses and other |  | $ | 0.9 |  |  | $ | 21.9 |
Postretirement benefits and other long-term liabilities |  | 2.3 |  |  | 61.9 |
Total |  | $ | 3.2 |  |  | $ | 83.8 |
ASC 842 Adoption of Practical Expedients We have elected to adopt, for all classes of underlying assets, a package of practical expedients provided under ASC 842 that allow us to 1) not reassess whether existing or expired contracts contain or contained a lease; 2) not reassess the lease classification (operating or financing) of our existing leases at adoption; and 3) not reassess initial direct costs for existing leases. ASC 842 also provides a practical expedient that allows companies to exclude balance sheet recognition of right-of-use assets and associated liabilities for lease terms of 12 months or less, which we have elected as part of our adoption of ASC 842 for all classes of underlying assets. We do not include right-of-use assets and operating lease liabilities on our Condensed Consolidated Balance Sheet for leases with a term of 12 months or less. We have also elected to adopt the practical expedient under ASC 842 to not separate lease and non-lease components in contracts that contain both. These lease agreements are accounted for as a single lease component for all classes of underlying assets. Leases Not Yet Commenced As of March 31, 2019, we have entered into additional operating leases that have not yet commenced of approximately $25 million, which primarily reflects the lease of a production facility with a term of 15 years that is expected to commence in 2019.

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- Definition Leasing [Abstract] + References No definition available. + Details
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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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