Leases (Notes)

3 Months Ended

Mar. 31, 2019

LEASES

Substantially all of our operating lease are related to office space we lease in various buildings for our own use. The terms of these non-cancelable operating leases typically require us to pay rent and a share of operating expenses and real estate taxes, generally with an inflation-based rent increase included. We also lease equipment under both operating and finance lease arrangements. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments (e.g. rent) over the lease term beginning at the commencement date. The Operating lease right-of-use assets are adjusted for lease incentives, deferred rent, and initial direct costs, if incurred. Our leases generally do not include an implicit rate; therefore, we use an incremental borrowing rate based on information available at the lease commencement date in determining the present value of future minimum lease payments. The related lease expense is recognized on a straight-line basis over the lease term. Operating lease expense for the three months ended March 31, 2019, was $40.2 million. Additionally, $25.7 million of operating right-of-use assets were obtained in exchange for lease obligations.

Finance leases are included in Property and equipment, net of accumulated depreciation, Short-term borrowings, and Other liabilities on our Condensed Consolidated Balance Sheets. Our finance leases do not represent a significant portion of our leasing activity. As of March 31, 2019, our total commitments related to finance leases was $11.5 million. Leases in which we sublet also do not represent a significant portion of our leasing activity.

Minimum future lease payments due in each of the next five years and thereafter, as of March 31, 2019, in accordance with ASC Topic 842, are presented in the below table.



(in millions)	ASC 842
2019 (9 months)	$	116.9
2020	140.4
2021	120.9
2022	88.5
2023	71.6
Thereafter	223.9
Total future minimum lease payments	762.2
Less imputed interest	94.3
Total	$	667.9

Other information related to operating leases was as follows:



(in millions)	March 31, 2019
Weighted Average Remaining Lease Term	6.8 years
Weighted Average Discount Rate	3.9	%

Minimum future lease payments due in each of the next five years and thereafter, as of December 31, 2018, in accordance with ASC Topic 840 included in our 2018 Annual Report on Form 10-K, are presented in the below table:



(in millions)	ASC 840
2019	$	167.8
2020	153.1
2021	132.3
2022	99.4
2023	81.0
Thereafter	257.3
Total future minimum lease payments	890.9