XML 33 R20.htm IDEA: XBRL DOCUMENT v3.22.0.1
Commitments
 12 Months Ended
Dec. 31, 2021
Other Commitments [Abstract]  
Commitments LEASES
Leases. The company has operating leases for datacenters and corporate offices. The operating leases have remaining lease terms of up to 16 years, some of which include options to extend or renew the leases for up to an additional five years, and some of which include options to early terminate the leases in less than 12 months. Management evaluates the exercisability of these options at least quarterly in order to determine whether the contract term must be reassessed. For a small number of the leases, primarily the international locations, management's approach is to enter into short-term leases for a lease term of 12 months or less in order to provide for greater flexibility in the local environment. For certain office spaces, the company has entered into arrangements to sublease excess space to third parties, while the original lease contract remains in effect with the landlord.
The company also has one finance lease, which is related to the sale of our datacenter in March 2016. In connection with the sale, the company leased back a portion of the property. The sale leaseback transaction was recognized under the financing method and not as a sale leaseback arrangement. In November 2021, the company sold a building in Chicago and subsequently entered into a leaseback arrangement for this property. This lease is classified as an operating lease.
The right-of-use lease asset is recorded within other assets, and the present value of the lease liability is recorded within other liabilities (segregated between short-term and long-term) on the consolidated balance sheets. The discount rate applied to the lease payments represents the company's incremental borrowing rate. The company has elected to utilize the short-term lease exception as prescribed in the leasing standard, such that the company has not capitalized on the balance sheet a lease asset or lease liability associated with leases with terms of 12 months or less from the commencement date.
The components of lease costs were as follows for the years ended December 31, 2021 and 2020:
(in millions)20212020
Operating lease expense:
Operating lease cost$63.2 $66.1 
Short-term lease cost0.7 0.7 
Total operating lease expense included in other expense$63.9 $66.8 
Finance lease expense:
Interest expense$3.1 $3.3 
Depreciation expense8.7 8.7 
Total finance lease expense$11.8 $12.0 
Sublease revenue included in other revenue$10.4 $13.3 
Supplemental cash flow information related to leases was as follows for years ended December 31, 2021 and 2020:
(in millions)20212020
Cash outflows for operating leases$64.2 $64.3 
Cash outflows for finance leases17.016.9 
Supplemental balance sheet information related to leases was as follows as of December 31, 2021 and 2020:
Operating leases
(in millions)20212020
Operating lease right-of-use assets$345.3 $390.3 
Operating lease liabilities:
Other current liabilities$47.3 $44.5 
Other liabilities449.4 492.2 
Total operating lease liabilities$496.7 $536.7 
Weighted average remaining lease term (in months)132138
Weighted average discount rate3.9 %3.9 %
Finance leases
(in millions)20212020
Finance lease right-of-use assets$80.2 $88.8 
Finance lease liabilities:
Other current liabilities$7.9 $7.7 
Other liabilities75.9 83.8 
Total finance lease liabilities$83.8 $91.5 
Weighted average remaining lease term (in months)111123
Weighted average discount rate3.5 %3.5 %
Future minimum lease payments were as follows as of December 31, 2021 for operating and finance leases:
(in millions)Operating Leases
202266.2 
202366.4 
202461.6 
202558.7 
202654.3 
Thereafter306.4 
Total lease payments613.6 
Less: imputed interest(116.9)
Present value of lease liability$496.7 
(in millions)Finance Lease
202217.1 
202317.2 
202417.4 
202517.5 
202617.6 
Thereafter76.7 
Total lease payments163.5 
Less: imputed interest(79.7)
Present value of lease liability$83.8