Leases

12 Months Ended

Dec. 31, 2020

16. Leases

Our leases primarily consist of office space. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For leases beginning 2019 and later, we account for lease components separately from the non-lease components.

Most leases include options to renew, and the lease renewal is at our sole discretion. Therefore, the depreciable life of assets and leasehold improvements is limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

We rent or sublease certain real estate to third parties. Our sublease portfolio mainly consists of operating leases for space within our office facilities.

Supplemental balance sheet information related to leases was as follows:

Lease Type	Balance Sheet Classification	December 31, 2020		December 31, 2019
		(Dollars in millions)
ASSETS
Operating lease assets	Trade and other receivables, net	$	5.4	$	5.5
Operating lease assets	Prepaid expenses and other current assets		2.2		1.2
Operating lease assets	Right of use lease asset		27.9		32.0
Financing lease assets	Property, plant, and equipment, net		8.0		8.8
Total lease assets		$	43.5	$	47.5
LIABILITIES
Current
Financing lease liabilities	Current portion of long-term debt	$	0.4	$	4.0
Operating lease liabilities	Current portion of long-term lease liabilities		10.5		8.8
Noncurrent
Financing lease liabilities	Long-term debt, less current portion		8.4		8.4
Operating lease liabilities	Long-term lease liabilities, less current portion		33.6		30.1
Total lease liabilities		$	52.9	$	51.3

The components of lease expense were as follows:

	Year Ended December 31,
	2020 ASC Topic 842			2019 ASC Topic 842			2018 ASC Topic 840
Lease Cost	(Dollars in millions)
Operating lease cost	$	9.1		$	12.8		$	17.6
Financing lease cost:
Depreciation of lease assets		0.8			0.1			—
Interest on lease liabilities (a)		0.4			—			—
Sublease income		(4.1	)		(4.4	)		(4.9	)
Net lease cost	$	6.2		$	8.5		$	12.7

(a)	Interest on lease liabilities was less than $0.1 million for the year ended December 31, 2019.

As a result of COVID-19 and our pivot to a virtual working environment, we evaluated our lease portfolio resulting in the decision to close certain office locations and transition the impacted employees to fully virtual work by the end of fiscal 2020. We recognized $16.8 million of charges, which was comprised of $14.7 million of accelerated amortization of the right of use assets and $2.1 million of accelerated depreciation of leasehold improvements, related to the abandonment of the leases associated with these office locations within selling, general and administrative expense in the consolidated statements of operations during the year ended December 31, 2020.

Supplemental cash flow information related to leases was as follows:

	Year Ended December 31,
	2020		2019
	(Dollars in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1.5	$	11.2
Operating cash flows from finance leases		0.4		—
Financing cash flows from finance leases		3.3		0.4
Lease assets obtained in exchange for new lease liabilities:
Operating leases		4.4		3.7
Financing leases		—		8.8

The future minimum lease payments under our operating and financing leases were as follows:

Years Ending December 31,	Amount
	(Dollars in millions)
2021	$	11.2
2022		11.3
2023		10.0
2024		8.6
2025		6.7
Thereafter		11.9
Total lease payments (a)	$	59.7
Less: Interest		6.8
Total	$	52.9

(a)	Future minimum lease payments have not been reduced by minimum sublease rentals of $6.5 million due in the future under noncancellable subleases.

Weighted average remaining lease term and weighted average discount rate were as follows:

	December 31,
	2020			2019
Weighted average remaining lease term (in years)
Operating leases		9.0			5.8
Financing leases		10.6			11.6
Weighted average discount rate
Operating leases		10.18	%		5.02	%
Financing leases		3.91	%		3.91	%