XML 53 R14.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Leases, Codification Topic 842 | 12 Months Ended
--- | ---
Dec. 31, 2019
Leases [Abstract] |
Leases of Lessee Disclosure | Leases Based on its evaluation of all contracts under ASC 842, as described in Note 1, the Company concluded it has operating lease obligations for OG&E railcar leases, OG&E wind farm land leases and the Company's office space lease. Operating Leases OG&E Railcar Lease Agreement Effective February 1, 2019, OG&E renewed a railcar lease agreement for 780 rotary gondola railcars to transport coal from Wyoming to OG&E's coal-fired generation units. Rental payments are charged to fuel expense and are recovered through OG&E's fuel adjustment clauses. On February 1, 2024, OG&E has the option to either purchase the railcars at a stipulated fair market value or renew the lease. If OG&E chooses not to purchase the railcars or renew the lease agreement and the actual fair value of the railcars is less than the stipulated fair market value, OG&E would be responsible for the difference in those values up to a maximum of $6.8 million. OG&E Wind Farm Land Lease Agreements OG&E has operating leases related to land for OG&E's Centennial, OU Spirit and Crossroads wind farms with terms of 25 to 30 years. The Centennial lease has rent escalations which increase annually based on the Consumer Price Index. While lease liabilities are not remeasured as a result of changes to the Consumer Price Index, changes to the Consumer Price Index are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. The OU Spirit and Crossroads leases have rent escalations which increase after five and 10 years. Although the leases are cancellable, OG&E is required to make annual lease payments as long as the wind turbines are located on the land. OG&E does not expect to terminate the leases until the wind turbines reach the end of their useful life. Office Space Lease The Company has a noncancellable office space lease agreement, with a term from September 1, 2018 to August 31, 2021, that allows for leasehold improvements. Financial Statement Information and Maturity Analysis of Lease Liabilities Operating lease cost was $6.0 million, $4.9 million and $6.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. The following table presents amounts recognized for operating leases in the Company's 2019 Consolidated Cash Flow Statement and Balance Sheet and supplemental information related to those amounts recognized, as well as a maturity analysis of the Company's operating lease liabilities.
(In millions) | Year Ended December 31, 2019 |
Cash paid for amounts included in the measurement of lease liabilities: |  |
Operating cash flows for operating leases | $ | 5.6 |  |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 10.7 |  |
(Dollars in millions) | December 31, 2019 |
Right-of-use assets at period end (A) | $ | 40.9 |  |
Operating lease liabilities at period end (B) | $ | 45.8 |  |
Operating lease weighted-average remaining lease term (in years) | 13.1 |
Operating lease weighted-average discount rate | 3.9 | % |
| December 31, |
Future minimum operating lease payments as of: | 2019 | 2018(C)(D)
(In millions) |  |
2019 | $ | — |  | $ | 22.1 |
2020 | 6.2 |  | 3.9 |
2021 | 5.8 |  | 3.5 |
2022 | 5.2 |  | 2.9 |
2023 | 5.2 |  | 2.9 |
2024 | 3.1 |  | 3.0 |
Thereafter | 34.7 |  | 34.6 |
Total future minimum lease payments | 60.2 |  | $ | 72.9 |
Less: Imputed interest | 14.4 |  |
Present value of net minimum lease payments | $ | 45.8 |  |
(A) Included in Property, Plant and Equipment in the 2019 Consolidated Balance Sheet. (B) Included in Other Deferred Credits and Other Liabilities in the 2019 Consolidated Balance Sheet. (C) Amounts included for comparability and accounted for in accordance with ASC 840, "Leases." (D) At the end of the railcar lease term, which was February 1, 2019, OG&E had the option to either purchase the railcars at a stipulated fair market value or renew the lease. OG&E renewed the lease effective February 1, 2019. If OG&E chose not to purchase the railcars or renew the lease agreement and the actual fair value of the railcars was less than the stipulated fair market value, OG&E would have been responsible for the difference in those values up to a maximum of $16.2 million.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
Name: | us-gaap_LeasesOfLesseeDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration