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Leases (Tables) | 12 Months Ended
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Dec. 31, 2020
Leases [Abstract] |
Schedule of lease expense and supplemental cash flow information for leases | The components of lease expense and supplemental cash flow information related to our leases for the years ended December 31 are as follows:
(in millions) |  | 2020 |  | 2019 |  | 2018
Finance lease expense |  |  |  |  |  |
Amortization of right of use assets (1) |  | $ | 6.3 |  |  | $ | 4.9 |  |  |
Interest on lease liabilities (2) |  | 2.5 |  |  | 3.3 |  |  |
Capital lease expense (3) |  |  |  |  |  | $ | 7.7 |
Operating lease expense (4) |  | 5.4 |  |  | 5.5 |  |  | 5.6 |
Short-term lease expense (4) |  | 0.3 |  |  | 0.6 |  |  | 1.5 |
Total lease expense |  | $ | 14.5 |  |  | $ | 14.3 |  |  | $ | 14.8 |
Other information |  |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |
Operating cash flows from finance/capital leases (5) |  | $ | 2.5 |  |  | $ | 3.3 |  |  | $ | 7.7 |
Operating cash flows from operating leases |  | $ | 6.7 |  |  | $ | 6.0 |  |  | $ | 6.5 |
Financing cash flows from finance leases (5) |  | $ | 6.3 |  |  | $ | 4.9 |  |  |
Non-cash activities: |  |  |  |  |  |
Right of use assets obtained in exchange for finance lease liabilities |  | $ | 22.8 |  |  | $ | 27.2 |  |  |
Right of use assets obtained in exchange for operating lease liabilities |  | $ | — |  |  | $ | 49.0 |  |  |
Weighted-average remaining lease term – finance leases |  | 41.5 years |  | 31.5 years |  |
Weighted-average remaining lease term – operating leases |  | 13.0 years |  | 12.9 years |  |
Weighted-average discount rate – finance lease (6) |  | 4.9 | % |  | 6.7 | % |  |
Weighted average discount rate – operating leases (6) |  | 3.4 | % |  | 4.4 | % |  |
(1) Amortization of right of use assets was included as a component of depreciation and amortization expense for the years ended December 31, 2020 and 2019. (2) Interest on lease liabilities was included as a component of interest expense for the years ended December 31, 2020 and 2019. (3) Capital lease expense related to the long-term PPA was included in cost of sales for the year ended December 31, 2018. (4) Operating and short-term lease expense were included as a component of operation and maintenance for the years ended December 31, 2020, 2019, and 2018. (5) Prior to our adoption of Topic 842 on January 1, 2019, all cash flows related to the finance lease were recorded as a component of operating cash flows. (6) Because our operating leases do not provide an implicit rate of return, we used the fully collateralized incremental borrowing rates based upon information available for similarly rated companies in determining the present value of lease payments for our operating leases. For our PPA that meets the definition of a finance lease, the rate implicit in the lease was readily determinable. For our solar land leases that are finance leases, we used the fully collateralized incremental borrowing rates based upon information available for similarly rated companies in determining the present value of lease payments.
Schedule of finance and operating lease right of use asset | The following table summarizes our finance lease right of use assets, which were included in property, plant and equipment on our balance sheets at December 31:
(in millions) |  | 2020 |  | 2019 |
Long-term power purchase commitment |  |  |  |  |
Under finance leases |  | $ | 140.3 |  |  | $ | 140.3 |  |
Accumulated amortization |  | (132.3) |  |  | (126.6) |  |
Total long-term power purchase commitment |  | $ | 8.0 |  |  | $ | 13.7 |  |
Two Creeks land leases |  |  |  |  |
Under finance leases |  | $ | 7.7 |  |  | $ | 7.7 |  |
Accumulated amortization |  | (0.2) |  |  | (0.1) |  |
Total Two Creeks land leases |  | $ | 7.5 |  |  | $ | 7.6 |  |
Badger Hollow I land leases |  |  |  |  |
Under finance leases |  | $ | 19.5 |  |  | $ | 19.5 |  |
Accumulated amortization |  | (0.6) |  |  | (0.2) |  |
Total Badger Hollow I land leases |  | $ | 18.9 |  |  | $ | 19.3 |  |
Badger Hollow II land leases |  |  |  |  |
Under finance leases |  | $ | 22.8 |  |  | $ | — |  |
Accumulated amortization |  | (0.2) |  |  | — |  |
Total Badger Hollow II land leases |  | $ | 22.6 |  |  | $ | — |  |
Total finance lease right of use assets |  | $ | 57.0 |  |  | $ | 40.6 |  |
Schedule of future minimum lease payments for operating and finance leases | Future minimum lease payments under our operating leases and our finance leases, and the present value of our net minimum lease payments as of December 31, 2020, were as follows:
(in millions) |  | Total Operating Leases |  | Power Purchase Commitment |  | Two Creeks |  | Badger Hollow I |  | Badger Hollow II |  | Total Finance Leases
2021 |  | $ | 4.5 |  |  | $ | 9.4 |  |  | $ | 0.2 |  |  | $ | 0.7 |  |  | $ | 0.3 |  |  | $ | 10.6 |
2022 |  | 4.4 |  |  | 4.2 |  |  | 0.2 |  |  | 0.7 |  |  | 0.3 |  |  | 5.4 |
2023 |  | 4.5 |  |  | — |  |  | 0.2 |  |  | 0.7 |  |  | 0.7 |  |  | 1.6 |
2024 |  | 4.3 |  |  | — |  |  | 0.2 |  |  | 0.7 |  |  | 0.7 |  |  | 1.6 |
2025 |  | 3.8 |  |  | — |  |  | 0.2 |  |  | 0.7 |  |  | 0.7 |  |  | 1.6 |
Thereafter |  | 24.5 |  |  | — |  |  | 22.6 |  |  | 52.7 |  |  | 55.0 |  |  | 130.3 |
Total minimum lease payments |  | 46.0 |  |  | 13.6 |  |  | 23.6 |  |  | 56.2 |  |  | 57.7 |  |  | 151.1 |
Less: Interest |  | (10.2) |  |  | (1.5) |  |  | (15.7) |  |  | (35.9) |  |  | (34.6) |  |  | (87.7) |
Present value of minimum lease payments |  | 35.8 |  |  | 12.1 |  |  | 7.9 |  |  | 20.3 |  |  | 23.1 |  |  | 63.4 |
Less: Short-term lease liabilities |  | (3.4) |  |  | (8.1) |  |  | — |  |  | — |  |  | — |  |  | (8.1) |
Long-term lease liabilities |  | $ | 32.4 |  |  | $ | 4.0 |  |  | $ | 7.9 |  |  | $ | 20.3 |  |  | $ | 23.1 |  |  | $ | 55.3 |

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- Definition Tabular disclosure of lessee's lease cost. Includes, but is not limited to, interest expense for finance lease, amortization of right-of-use asset for finance lease, operating lease cost, short-term lease cost, variable lease cost and sublease income. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=121609121&loc=SL77918686-209980 + Details
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- Definition Tabular disclosure of undiscounted cash flows for finance and operating lease liabilities. Includes, but is not limited to, reconciliation of undiscounted cash flows to finance and operating lease liabilities recognized in the statement of financial position. + References No definition available. + Details
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- Definition Tabular disclosure of right of use assets for finance and operating leases. Includes, but is not limited to, the gross carrying amount of the assets and the associated accumulated amortization. + References No definition available. + Details
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