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Leases | 12 Months Ended
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Dec. 31, 2019
Leases |
Leases | Note 10—Leases ​ Amphenol is a lessee of buildings, office space, automobiles and equipment throughout the world, nearly all of which are classified as operating leases expiring at various dates. The Company determines if an arrangement qualifies as a lease at lease inception. The Company adopted Topic 842 effective January 1, 2019. Operating lease liabilities are recorded based on the present value of the future lease payments over the lease term, assessed as of the commencement date. The Company’s real estate leases, which are comprised primarily of manufacturing facilities, warehouses and sales offices, represent the vast majority of our operating lease liabilities and generally have a lease term between 2 and 12 years. The remaining leases consist primarily of machinery and equipment used in production, office equipment and vehicles, each with various lease terms. The vast majority of our leases are comprised of fixed lease payments, with a small percentage of the Company’s real estate leases including lease payments tied to a rate or index which may be subject to variability. Certain real estate leases also include executory costs such as common area maintenance (non-lease component), as well as property insurance and property taxes (non-components). As a practical expedient permitted under Topic 842, we have elected to account for the lease and non-lease components as a single lease component for our real estate leases. Lease payments, which may include lease components, non-lease components and non-components, are included in the measurement of the Company’s lease liabilities to the extent that such payments are either fixed amounts or variable amounts based on a rate or index (fixed in substance) as stipulated in the lease contract. Any actual costs in excess of such amounts are expensed as incurred as variable lease cost. ​ Substantially all of our lease agreements do not specify an implicit borrowing rate, and as such, the Company utilizes its incremental borrowing rate by lease term, in order to calculate the present value of our future lease payments. The discount rate represents a risk-adjusted rate on a secured basis, and is the rate at which the Company would borrow funds to satisfy the scheduled lease liability payment streams commensurate with the lease term. On January 1, 2019, the discount rate used on existing leases at adoption was determined based on the remaining lease term using available data as of that date. For new or renewed leases starting in 2019, the discount rate is determined using available data at lease commencement and based on the lease term including any reasonably certain renewal periods. ​ Some of our lease agreements, primarily related to real estate, include options for the Company to either renew (extend) or early terminate the lease. Leases with renewal options allow the Company to extend the lease term typically between 1 and 6 years. Renewal options are reviewed at lease commencement to determine if such options are reasonably certain of being exercised, which could impact the lease term. When determining if a renewal option is reasonably certain of being exercised, the Company considers several factors, including but not limited to, the significance of leasehold improvements incurred on the property, whether the asset is difficult to replace, or specific characteristics unique to the particular lease that would make it reasonably certain that we would exercise such option. In most cases, the Company has concluded that renewal and early termination options are not reasonably certain of being exercised by the Company (and thus not included in our ROU asset and lease liability) unless there is an economic, financial or business reason to do so. ​ Operating Leases ​ For the year ended December 31, 2019, total operating lease cost was $97.6, which includes an immaterial amount of variable lease cost, and is recorded in Cost of sales and Selling, general and administrative expenses, dependent on the nature of the leased asset. Other than variable lease cost, operating lease cost is recognized on a straight-line basis over the lease term. The following summarizes: (i) the future minimum undiscounted lease payments under non-cancelable leases for each of the next five years and thereafter, incorporating the practical expedient to account for lease and non-lease components as a single lease component for our existing real estate leases, (ii) a reconciliation of the undiscounted lease payments to the present value of the lease liabilities recognized, and (iii) the lease-related account balances on our Consolidated Balance Sheets, all as of December 31, 2019: ​
​ | ​ | ​ | ​
​ | ​ | Operating
Year Ending December 31, | ​ | Leases
2020 | ​ | $ | 58.8
2021 | ​ | ​ | 43.0
2022 | ​ | ​ | 30.3
2023 | ​ | ​ | 22.6
2024 | ​ | ​ | 17.3
Thereafter | ​ | ​ | 47.4
Total future minimum lease payments | ​ | $ | 219.4
Less imputed interest | ​ | ​ | (20.0)
Total present value of future minimum lease payments | ​ | $ | 199.4
​ | ​ | ​ | ​
As of December 31, 2019: | ​ | ​ | ​
Operating lease right-of-use assets (included in Other long-term assets) | ​ | $ | 196.7
​ | ​ | ​ | ​
Other accrued expenses | ​ | $ | 54.0
Other long-term liabilities | ​ | ​ | 145.4
Total operating lease liabilities | ​ | $ | 199.4
​ The following summarizes additional supplemental data related to our operating leases: ​
​ | ​ | ​ | ​ | ​
​ | ​ | Operating | ​
Year Ended December 31, 2019: | ​ | Leases | ​
Supplemental Cash Flow Information: | ​ | ​ | ​ | ​
Cash paid for amounts included in the measurement of lease liabilities: | ​ | ​ | ​ | ​
Operating cash flows from operating leases | ​ | $ | 86.0 | ​
​ | ​ | ​ | ​ | ​
Right-of-use assets obtained in exchange for lease liabilities | ​ | $ | 98.6 | ​
​ | ​ | ​ | ​ | ​
As of December 31, 2019: | ​ | ​ | ​ | ​
Weighted Average Remaining Lease Term | ​ | ​ | 6 | years
Weighted Average Discount Rate | ​ | ​ | 3.2 | %
​ Lease contracts that we have executed but which have not yet commenced as of December 31, 2019 were not material, and are excluded from the tables above. The Company does not generally enter into leases involving the construction or design of the underlying asset, and nearly all of the assets we lease are not specialized in nature. Our lease agreements generally do not include residual value guarantees nor do we enter into sublease arrangements with external parties. ​ Prior to January 1, 2019, the Company accounted for its leases in accordance with Topic 840, Leases. Total rent expense under operating leases for the years ended December 31, 2018 and 2017 was approximately $87.2 and $58.5, respectively, which was recorded in Cost of sales and Selling, general and administrative expenses, dependent on the nature of the leased asset. At December 31, 2018, the Company was committed under operating leases for buildings, office space, automobiles and equipment, which expired at various dates. As previously disclosed in our 2018 Annual Report and under previous lease accounting guidance, future minimum lease payments (undiscounted) under non-cancelable operating leases as of December 31, 2018 was as follows: ​
​ | ​ | ​ | ​ | ​
2019 |  | $ | 70.5 |
2020 | ​ |  | 39.0 | ​
2021 | ​ |  | 25.9 | ​
2022 | ​ |  | 16.5 | ​
2023 | ​ |  | 11.9 | ​
Beyond 2023 | ​ |  | 33.5 | ​
Total minimum obligation | ​ | $ | 197.3 | ​
​ ​ ​ Finance Leases ​ In rare circumstances, the Company may enter into finance leases (formerly referred to as “capital leases”) for specific equipment used in manufacturing, in which the Company takes ownership of the asset upon the end of the lease. The Company records its finance leases within Property, plant and equipment, net, Current portion of long-term debt and Long-term debt on the accompanying Consolidated Balance Sheets. The Company’s finance leases and related depreciation and interest expense, cash flows and impact on the Company’s consolidated financial statements were not material individually or in the aggregate as of and for the years ended December 31, 2019, 2018 and 2017.

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