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Leases | 12 Months Ended
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Dec. 31, 2019
Leases [Abstract] |
Leases | LEASES The Company leases retail stores, manufacturing and distribution facilities, office space and equipment under operating lease agreements. Operating lease right-of-use (ROU) assets and lease liabilities are recognized based on the present value of lease payments over the lease term. The majority of the ROU asset and lease liability balances relate to the retail operations of The Americas Group. Most leases include one or more options to renew. The exercise of lease renewal options is at the Company's discretion and is not reasonably certain at lease commencement. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases relate primarily to common area maintenance, insurance, taxes and utilities associated with the properties. Variable payments for equipment leases relate primarily to hours, miles, or other quantifiable usage factors which are not determinable at the time the lease agreement is entered into by the Company. The Company has made an accounting policy election by class of underlying asset to not apply the recognition requirements of ASC 842 to short-term leases. As a result, certain leases with a term of 12 months or less are not recorded on the balance sheet and expense is recognized on a straight-line basis over the lease term. Most leases do not contain an implicit discount rate. Therefore, the Company’s estimated incremental borrowing rate based on information available at the time of lease inception is used to discount lease payments to present value. Effective January 1, 2019, the Company adopted ASC 842 using the modified retrospective optional transition method, electing to not restate prior periods. As a result, the required comparative period disclosures below are reported in accordance with the previous accounting standard, ASC 840. Additional lease information is summarized below:
|  | 2019 | 2018 | 2017
Operating lease cost (1) |  | $ | 452.9 |  | $ | 552.7 |  | $ | 464.6 |
Short-term lease cost (2) |  | 39.7 |  |  |
Variable lease cost |  | 73.6 |  | 68.2 |  | 63.3 |
Operating cash outflows from operating leases (2) |  | $ | 430.9 |  |  |
Leased assets obtained in exchange for new operating lease liabilities (2) |  | $ | 346.4 |  |  |
(1) | Operating lease cost for comparative periods includes short-term lease cost in accordance with ASC 840 disclosure requirements.
(2) | Disclosure was not required for comparative periods under ASC 840.
At December 31, 2019, the weighted average remaining lease term and discount rate for operating leases was 6.0 years and 3.9%, respectively. The following table reconciles the undiscounted cash flows for each of the next five years and thereafter to the operating lease liabilities recognized on the balance sheet as of December 31, 2019. The reconciliation excludes short-term leases that are not recorded on the balance sheet.
Year Ending December 31, |
2020 | $ | 430.3 |
2021 | 377.1 |
2022 | 315.4 |
2023 | 248.5 |
2024 | 187.9 |
Thereafter | 401.9 |
Total lease payments | 1,961.1 |
Amount representing interest | (218.8 | )
Present value of operating lease liabilities | $ | 1,742.3 |
During 2018, the Company completed transactions to sell and subsequently leaseback certain real estate properties and received proceeds totaling $225.3 million. The transactions were accounted for as financing transactions primarily due to the Company's continuing involvement resulting from the length of the lease term in comparison to the remaining economic life of the real estate properties. The financing transactions have related future obligations of $212.4 million at December 31, 2019.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + 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 + Details
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