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v3.20.2

Leases | 9 Months Ended
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Aug. 31, 2020
Leases [Abstract] |
Leases | LEASES Our lease portfolio primarily consists of (i) certain real estate, including those related to a number of administrative, distribution and manufacturing locations; (ii) certain machinery and equipment, including forklifts; and (iii) automobiles, delivery trucks and other vehicles, including an airplane. When our real estate lease arrangements include lease and non-lease components (for example, common area maintenance), we account for each component separately, based on their relative standalone prices. For all other asset categories, we combine lease components and non-lease components into a single lease commitment. We determine if an agreement is a lease or contains a lease at inception. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are based on the estimated present value of lease payments over the lease term and are recognized at the lease commencement date. As most of our leases do not provide an implicit borrowing rate, we use our estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. A limited number of our lease agreements include rental payments that are adjusted periodically based on a market rate or index. Our lease agreements generally do not contain residual value guarantees or material restrictive covenants. The following table presents the components of our lease expense (in millions):
|  |  |  | Three months ended August 31, 2020 | Nine months ended August 31, 2020 |
Operating lease cost |  |  |  | $ | 9.7 |  | $ | 30.3 |  |
Finance lease cost: |  |  |  |  |  |
Amortization of ROU assets |  |  |  | 2.2 |  | 6.7 |  |
Interest on lease liabilities |  |  |  | 1.1 |  | 3.4 |  |
Net lease cos t (1) |  |  |  | $ | 13.0 |  | $ | 40.4 |  |
(1) Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial. |  |  |  |  |  |
Supplemental balance sheet information related to leases as of August 31, 2020 were as follows (in millions):
Leases |  | Classification |  |
Assets |  |  |  |
Operating lease ROU assets |  | Other long-term assets |  | $ | 121.3 |
Finance lease ROU assets |  | Property, plant and equipment, net |  | 124.3 |
Total leased assets |  |  |  | $ | 245.6 |
Liabilities |  |  |  |
Current |  |  |  |
Operating |  | Other accrued liabilities |  | $ | 33.6 |
Finance |  | Current portion of long-term debt |  | 7.3 |
Non-current |  |  |  |
Operating |  | Other long-term liabilities |  | 91.4 |
Finance |  | Long-term debt |  | 127.3 |
Total lease liabilities |  |  |  | $ | 259.6 |
Information regarding our lease terms and discount rates as of August 31, 2020 were as follows:
| Weighted-average remaining lease term (years) |  | Weighted-average discount rate
Operating leases | 5.7 |  | 2.1 | %
Finance leases | 14.3 |  | 3.3 | %
The future maturity of our lease liabilities as of August 31, 2020 were as follows (in millions):
| Operating leases |  | Finance leases |  | Total
2020 (remainder of year) | $ | 9.6 |  |  | $ | 2.8 |  |  | $ | 12.4 |
2021 | 33.9 |  |  | 11.4 |  |  | 45.3 |
2022 | 25.5 |  |  | 11.4 |  |  | 36.9 |
2023 | 18.1 |  |  | 11.4 |  |  | 29.5 |
2024 | 11.3 |  |  | 11.5 |  |  | 22.8 |
Thereafter | 34.1 |  |  | 125.9 |  |  | 160.0 |
Total lease payments | 132.5 |  |  | 174.4 |  |  | 306.9 |
Less: Imputed interest | 7.5 |  |  | 39.8 |  |  | 47.3 |
Total lease liabilities | $ | 125.0 |  |  | $ | 134.6 |  |  | $ | 259.6 |
Supplemental cash flow and other information related to leases for the nine months ended August 31, 2020 were as follows (in million):
Cash paid for amounts included in the measurements of lease liabilities: |
Operating cash flows used for operating leases | $ | 30.4 |
Operating cash flows used for finance leases | 3.4 |
Financing cash flows used for finance leases | 5.1 |
ROU assets obtained in exchange for lease liabilities |
Operating leases | $ | 8.7 |
Leases | LEASES Our lease portfolio primarily consists of (i) certain real estate, including those related to a number of administrative, distribution and manufacturing locations; (ii) certain machinery and equipment, including forklifts; and (iii) automobiles, delivery trucks and other vehicles, including an airplane. When our real estate lease arrangements include lease and non-lease components (for example, common area maintenance), we account for each component separately, based on their relative standalone prices. For all other asset categories, we combine lease components and non-lease components into a single lease commitment. We determine if an agreement is a lease or contains a lease at inception. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are based on the estimated present value of lease payments over the lease term and are recognized at the lease commencement date. As most of our leases do not provide an implicit borrowing rate, we use our estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. A limited number of our lease agreements include rental payments that are adjusted periodically based on a market rate or index. Our lease agreements generally do not contain residual value guarantees or material restrictive covenants. The following table presents the components of our lease expense (in millions):
|  |  |  | Three months ended August 31, 2020 | Nine months ended August 31, 2020 |
Operating lease cost |  |  |  | $ | 9.7 |  | $ | 30.3 |  |
Finance lease cost: |  |  |  |  |  |
Amortization of ROU assets |  |  |  | 2.2 |  | 6.7 |  |
Interest on lease liabilities |  |  |  | 1.1 |  | 3.4 |  |
Net lease cos t (1) |  |  |  | $ | 13.0 |  | $ | 40.4 |  |
(1) Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial. |  |  |  |  |  |
Supplemental balance sheet information related to leases as of August 31, 2020 were as follows (in millions):
Leases |  | Classification |  |
Assets |  |  |  |
Operating lease ROU assets |  | Other long-term assets |  | $ | 121.3 |
Finance lease ROU assets |  | Property, plant and equipment, net |  | 124.3 |
Total leased assets |  |  |  | $ | 245.6 |
Liabilities |  |  |  |
Current |  |  |  |
Operating |  | Other accrued liabilities |  | $ | 33.6 |
Finance |  | Current portion of long-term debt |  | 7.3 |
Non-current |  |  |  |
Operating |  | Other long-term liabilities |  | 91.4 |
Finance |  | Long-term debt |  | 127.3 |
Total lease liabilities |  |  |  | $ | 259.6 |
Information regarding our lease terms and discount rates as of August 31, 2020 were as follows:
| Weighted-average remaining lease term (years) |  | Weighted-average discount rate
Operating leases | 5.7 |  | 2.1 | %
Finance leases | 14.3 |  | 3.3 | %
The future maturity of our lease liabilities as of August 31, 2020 were as follows (in millions):
| Operating leases |  | Finance leases |  | Total
2020 (remainder of year) | $ | 9.6 |  |  | $ | 2.8 |  |  | $ | 12.4 |
2021 | 33.9 |  |  | 11.4 |  |  | 45.3 |
2022 | 25.5 |  |  | 11.4 |  |  | 36.9 |
2023 | 18.1 |  |  | 11.4 |  |  | 29.5 |
2024 | 11.3 |  |  | 11.5 |  |  | 22.8 |
Thereafter | 34.1 |  |  | 125.9 |  |  | 160.0 |
Total lease payments | 132.5 |  |  | 174.4 |  |  | 306.9 |
Less: Imputed interest | 7.5 |  |  | 39.8 |  |  | 47.3 |
Total lease liabilities | $ | 125.0 |  |  | $ | 134.6 |  |  | $ | 259.6 |
Supplemental cash flow and other information related to leases for the nine months ended August 31, 2020 were as follows (in million):
Cash paid for amounts included in the measurements of lease liabilities: |
Operating cash flows used for operating leases | $ | 30.4 |
Operating cash flows used for finance leases | 3.4 |
Financing cash flows used for finance leases | 5.1 |
ROU assets obtained in exchange for lease liabilities |
Operating leases | $ | 8.7 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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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- 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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