Leases

12 Months Ended

Dec. 31, 2020

Operating and Finance Leases [Text Block]

LEASES

Leasing Activity

We have operating and finance leases for heavy mobile equipment, railcars, fleet vehicles, field and plant equipment, river and cross-Gulf vessels, corporate offices, land, and computer equipment. Our leases have remaining lease terms of 1 year to 29 years, some of which include options to extend the leases for up to 10 years and some of which include options to terminate the leases within 1 year.

Supplemental balance sheet information related to leases as of December 31, 2020 and December 31, 2019 is as follows:


	December 31,
Type of Lease Asset or Liability	2020		2019		Balance Sheet Classification
	(in millions)
Operating Leases
Right-of-use assets	$	173.1	$	192.1	Other assets
Lease liabilities:
Short-term	64.0		67.1		Accrued liabilities
Long-term	109.6		127.0		Other noncurrent liabilities
Total	$	173.6	$	194.1
Finance Leases
Right-of-use assets:
Gross assets	$	457.9	$	423.2
Less: accumulated depreciation	89.3		57.5
Net assets	$	368.6	$	365.7	Property, plant and equipment, net
Lease liabilities:
Short-term	$	49.9	$	41.7	Current maturities of long-term debt
Long-term	294.6		303.4		Long-term debt, less current maturities
Total	$	344.5	$	345.1

Lease expense is generally included within cost of goods sold and selling, general and administrative expenses, except for interest on lease liabilities, which is recorded within net interest. The components of lease expense were as follows:


	December 31,
(in millions)	2020		2019
Operating lease cost	$	81.7	$	98.4
Finance lease cost:
Amortization of right-of-use assets	37.7		28.3
Interest on lease liabilities	13.3		15.2
Short-term lease cost	3.1		10.5
Variable lease cost	21.8		21.5
Total lease cost	$	157.6	$	173.9

Rental expense for 2020, 2019 and 2018 was $226.9 million, $249.1 million and $270.3 million, respectively.

Supplemental cash flow information related to leases was as follows:


	December 31,
(In millions)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	96.6	$	107.9
Operating cash flows from finance leases	$	8.4	$	10.7
Financing cash flows from finance leases	$	46.9	$	41.3

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	22.4	$	56.0
Finance leases	$	36.4	$	88.2

Other information related to leases was as follows:


	December 31, 2020
Weighted Average Remaining Lease Term
Operating leases	4.4 years
Finance leases	3.8 years

Weighted Average Discount Rate
Operating leases	4.8	%
Finance leases	3.8	%

Future lease payments under non-cancellable leases recorded as of December 31, 2020, were as follows:


	Operating Leases		Finance Leases
(in millions)
2021	$	71.6	$	63.5
2022	55.4		53.5
2023	25.4		78.3
2024	16.1		167.4
2025	5.6		5.1
Thereafter	21.1		14.5
Total future lease payments	$	195.2	$	382.3
Less imputed interest	(21.6)		(37.8)
Total	$	173.6	$	344.5