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Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

Leases

ASC 842 Summary

The Company leases retail stores, manufacturing and distribution facilities, office space and equipment under operating lease agreements. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to several years, with the longest renewal period extending through 2043. The exercise of lease renewal options are at the Company's sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

The following table summarizes the classification of operating and finance lease assets and obligations in the Company's Condensed Consolidated Balance Sheet as of September 30, 2019:

(in millions)				September 30, 2019
Assets
Operating lease assets		Operating lease right-of-use assets		$	227.2
Finance lease assets		Property, plant and equipment, net		55.4
Total leased assets				$	282.6
Liabilities
Short-term:
Operating lease obligations		Accrued expenses and other current liabilities		$	49.7
Finance lease obligations		Current portion of long-term debt		8.0
Long-term:
Operating lease obligations		Long-term operating lease obligations		186.2
Finance lease obligations		Long-term debt, net		57.0
Total lease obligations				$	300.9

The following table summarizes the classification of lease expense in the Company's Condensed Consolidated Statement of Income for the three and nine months ended September 30, 2019:

		Three Months Ended				Nine Months Ended
(in millions)		September 30, 2019				September 30, 2019
Operating lease expense (1)		$	24.0			$	65.2
Finance lease expense:
Amortization of right-of-use assets		2.1				6.3
Interest on lease obligations		1.2				3.6
Total lease expense		$	27.3			$	75.1

(1) Includes short-term leases and variable lease expenses, which are immaterial.

The following table sets forth the scheduled maturities of lease obligations as of September 30, 2019:

(in millions)		Operating Leases				Finance Leases				Total
Year Ended December 31,
2019 (excluding the nine months ended September 30, 2019)		$	16.0			$	3.0			$	19.0
2020		58.5				11.9				70.4
2021		50.2				11.7				61.9
2022		42.4				9.6				52.0
2023		32.6				7.7				40.3
Thereafter		77.3				43.9				121.2
Total lease payments		277.0				87.8				364.8
Less: Interest		41.1				22.8				63.9
Present value of lease obligations		$	235.9			$	65.0			$	300.9

The following table provides lease term and discount rate information related to operating and finance leases as of September 30, 2019:

		September 30, 2019
Weighted average remaining lease term (years):
Operating leases		5.78
Finance leases		9.38
Weighted average discount rate:
Operating leases		5.47	%
Finance leases		6.29	%

The following table provides supplemental information related to the Company's Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2019:

		Nine Months Ended
(in millions)		September 30, 2019
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows paid for operating leases		$	42.5
Financing cash flows paid for finance leases		5.9
Right-of-use assets obtained in exchange for new operating lease obligations		$	66.1

Leases

Leases

ASC 842 Summary

The Company leases retail stores, manufacturing and distribution facilities, office space and equipment under operating lease agreements. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to several years, with the longest renewal period extending through 2043. The exercise of lease renewal options are at the Company's sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

The following table summarizes the classification of operating and finance lease assets and obligations in the Company's Condensed Consolidated Balance Sheet as of September 30, 2019:

(in millions)				September 30, 2019
Assets
Operating lease assets		Operating lease right-of-use assets		$	227.2
Finance lease assets		Property, plant and equipment, net		55.4
Total leased assets				$	282.6
Liabilities
Short-term:
Operating lease obligations		Accrued expenses and other current liabilities		$	49.7
Finance lease obligations		Current portion of long-term debt		8.0
Long-term:
Operating lease obligations		Long-term operating lease obligations		186.2
Finance lease obligations		Long-term debt, net		57.0
Total lease obligations				$	300.9

The following table summarizes the classification of lease expense in the Company's Condensed Consolidated Statement of Income for the three and nine months ended September 30, 2019:

		Three Months Ended				Nine Months Ended
(in millions)		September 30, 2019				September 30, 2019
Operating lease expense (1)		$	24.0			$	65.2
Finance lease expense:
Amortization of right-of-use assets		2.1				6.3
Interest on lease obligations		1.2				3.6
Total lease expense		$	27.3			$	75.1

(1) Includes short-term leases and variable lease expenses, which are immaterial.

The following table sets forth the scheduled maturities of lease obligations as of September 30, 2019:

(in millions)		Operating Leases				Finance Leases				Total
Year Ended December 31,
2019 (excluding the nine months ended September 30, 2019)		$	16.0			$	3.0			$	19.0
2020		58.5				11.9				70.4
2021		50.2				11.7				61.9
2022		42.4				9.6				52.0
2023		32.6				7.7				40.3
Thereafter		77.3				43.9				121.2
Total lease payments		277.0				87.8				364.8
Less: Interest		41.1				22.8				63.9
Present value of lease obligations		$	235.9			$	65.0			$	300.9

The following table provides lease term and discount rate information related to operating and finance leases as of September 30, 2019:

		September 30, 2019
Weighted average remaining lease term (years):
Operating leases		5.78
Finance leases		9.38
Weighted average discount rate:
Operating leases		5.47	%
Finance leases		6.29	%

The following table provides supplemental information related to the Company's Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2019:

		Nine Months Ended
(in millions)		September 30, 2019
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows paid for operating leases		$	42.5
Financing cash flows paid for finance leases		5.9
Right-of-use assets obtained in exchange for new operating lease obligations		$	66.1

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- References

No definition available.

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X

- 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

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X

- 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

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