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Leases | 6 Months Ended
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Jun. 30, 2019
Leases [Abstract] |
Leases |
6. | Leases
As discussed in Note 2, we adopted ASU 2016-02 as of January 1, 2019. We have operating and finance leases for buildings and certain machinery and equipment. Operating leases are included in operating lease assets, other current liabilities, and operating lease liabilities in our condensed consolidated balance sheets. Amounts recognized for finance leases as of and for the six months ended June 30, 2019 were immaterial. Operating lease assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our lease contracts do not provide an explicit interest rate, we use our incremental borrowing rate in determining the present value of future lease payments. Our incremental borrowing rates include estimates related to the impact of collateralization and the economic environment where the leased asset is located. The operating lease assets also include any prepaid lease payments and initial direct costs incurred, but exclude lease incentives received at lease commencement. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Our leases have remaining lease terms of 1 to 36 years, some of which may include options to extend or terminate the lease. Lease expense for lease payments is recognized on a straight-line basis over the lease term in a manner similar to previous accounting guidance. We do not recognize leases with an initial term of twelve months or less on the balance sheet and instead recognize the related lease payments as expense in the statement of comprehensive income on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component for all asset classes. Additionally, for certain equipment leases, we apply a portfolio approach and account for multiple lease components as a single lease component.
6. | Leases (Continued)
Certain of our lease agreements include variable rental payments, including rental payments adjusted periodically for inflation. Variable rental payments are expensed during the period they are incurred and therefore are excluded from our lease assets and liabilities. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease expense recognized in the condensed consolidated statement of comprehensive income during the six and three months ended June 30, 2019 was $25.7 million and $12.7 million, respectively, including approximately $4.0 million and $1.9 million of short-term and variable lease costs for the six and three months ended June 30, 2019, respectively. Other information related to leases was as follows:
(In millions, except lease term and discount rate) |  | Six Months Ended June 30, 2019 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 20.5 |
Right-of-use assets obtained in exchange for operating lease obligations |  | $ | 12.8 |
Weighted average remaining lease term - operating leases |  | 7.4 years |
Weighted average discount rate - operating leases |  |  | 4.4 | %
Total lease payments under non-cancellable operating leases as of June 30, 2019 were as follows:
(In millions) |  |  |  |
Year Ending December 31, |  |  |  |
2019 (excluding six months ended June 30, 2019) |  | $ | 20.3 |
2020 |  |  | 36.6 |
2021 |  |  | 30.5 |
2022 |  |  | 24.4 |
2023 |  |  | 20.2 |
Thereafter |  |  | 79.8 |
Total lease payments |  |  | 211.8 |
Less imputed interest |  |  | (32.2 | )
Total |  | $ | 179.6 |
Reported as of June 30, 2019 |  |  |  |
Other current liabilities |  | $ | 33.3 |
Operating lease liabilities |  |  | 146.3 |
Total |  | $ | 179.6 |

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- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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