Balance Sheet Information

12 Months Ended

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Note 8: Balance Sheet Information

Certain significant amounts included in the Company's Consolidated Balance Sheets consist of the following (in millions):


	As of
	December 31, 2019		December 31, 2018




Inventories:
Raw materials	$	138.4	$	137.3
Work in process	772.9		760.7
Finished goods	321.1		327.2
	$	1,232.4	$	1,225.2






Property, plant and equipment, net:
Land	$	125.2	$	125.5
Buildings	860.6		820.4
Machinery and equipment	4,275.2		3,980.2
Property, plant and equipment, gross	5,261.0		4,926.1
Less: Accumulated depreciation	(2,669.4)		(2,376.5)
	$	2,591.6	$	2,549.6
Accrued expenses:
Accrued payroll and related benefits	$	153.4	$	240.8
Sales related reserves	247.3		294.8



Income taxes payable	22.5		38.2

Other	115.6		85.3
	$	538.8	$	659.1

Assets classified as held-for-sale, consisting primarily of properties, are required to be recorded at the lower of carrying value or fair value less any costs to sell. The carrying value of these assets as of December 31, 2019 was $1.4 million, and is reported as other current assets on the Company’s Consolidated Balance Sheet.

Depreciation expense for property, plant and equipment, including amortization of finance leases, totaled $409.7 million, $359.3 million and $325.2 million for 2019, 2018 and 2017, respectively.

Included within sales related reserves are ship and credit reserves for distributors amounting to $178.7 million and $230.8 million as of December 31, 2019 and 2018, respectively.

Leases

Operating lease arrangements are comprised primarily of real estate and equipment agreements. There are also certain insignificant finance leases recorded in the Consolidated Balance Sheet. The Company's existing leases do not contain significant restrictive provisions or residual value guarantees; however, certain leases contain renewal options and provisions for payment of real estate taxes, insurance and maintenance costs by the Company.

The components of lease expense are as follows (in millions):


	Year Ended
	December 31, 2019
Operating lease	$	35.0
Variable lease	4.0
Short-term lease	2.6
Total lease expense	$	41.6

The lease liabilities included in the following captions in the Consolidated Balance Sheet are as follows (in millions):


	As of
	December 31, 2019
Accrued expenses and other current liabilities	$	26.1
Other long-term liabilities	87.9
	$	114.0

Operating lease assets of $110.2 million are included in other assets in the Consolidated Balance Sheet as of December 31, 2019. As of December 31, 2019, the weighted-average remaining lease-term was 6.4 years and the weighted-average discount rate was 5.4%.

As of December 31, 2019, there are additional operating lease commitments of approximately $0.4 million that have not yet commenced. The reconciliation of the maturities of the operating leases to the lease liabilities recorded in the Consolidated Balance Sheet as of December 31, 2019 is as follows (in millions):


2020	$	31.3
2021	26.0
2022	21.4
2023	15.1
2024	14.1
Thereafter	36.9
Total lease payments	$	144.8
Less: Interest	(30.8)
Amounts recorded in the Consolidated Balance Sheet	$	114.0

Total rent expense associated with operating leases for 2018 and 2017 was $43.6 million and $45.3 million, respectively. As of December 31, 2018, future minimum lease obligations under non-cancelable operating leases were as follows:


2019	$	36.8
2020	27.6
2021	21.9
2022	16.8
2023	12.3
Thereafter	45.4
Total (1)	$	160.8

(1) Excludes $12.3 million of expected sublease income.

Warranty Reserves

The activity related to the Company's warranty reserves are as follows (in millions):


Balance as of December 31, 2016	$	8.8
Provision	6.8
Usage	(7.6)

Balance as of December 31, 2017	8.0
Provision	0.4
Usage	(3.2)

Balance as of December 31, 2018	5.2
Provision	3.3
Usage	(4.1)
Balance as of December 31, 2019	$	4.4