XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.21.2

Leases | 6 Months Ended
--- | ---
Jun. 30, 2021
Leases [Abstract] |
Leases | Leases Lessor Sealed Air has contractual obligations as a lessor with respect to some of our equipment solutions including 'free on loan' equipment and leased equipment, both sales-type and operating. The consideration in a contract that contains both lease and non-lease components is allocated based on the standalone selling price. Our contractual obligations for operating leases can include termination and renewal options. Our contractual obligations for sales-type leases tend to have fixed terms and can include purchase options. We utilize the reasonably certain threshold criteria in determining which options our customers will exercise. All lease payments are primarily fixed in nature and therefore captured in the lease receivable. Our lease receivable balances at June 30, 2021 and December 31, 2020 were as follows:
(In millions) |  | June 30, 2021 |  | December 31, 2020
Short-Term (12 months or less) |  | $ | 5.8 |  |  | $ | 5.4 |
Long-Term |  | 12.8 |  |  | 11.9 |
Total lease receivables (Sales-type and Operating) |  | $ | 18.6 |  |  | $ | 17.3 |
Lessee Sealed Air has contractual obligations as a lessee with respect to warehouses, offices, manufacturing facilities, IT equipment, automobiles, and material production equipment. The following table details our lease obligations included in our Condensed Consolidated Balance Sheets.
(In millions) |  | June 30, 2021 |  | December 31, 2020
Other non-current assets: |  |  |  |
Finance leases - ROU assets |  | $ | 58.5 |  |  | $ | 58.2 |
Finance leases - Accumulated depreciation |  | (23.9) |  |  | (22.6) |
Operating lease right-of-use-assets: |  |  |  |
Operating leases - ROU assets |  | 132.8 |  |  | 127.4 |
Operating leases - Accumulated depreciation |  | (62.1) |  |  | (51.3) |
Total lease assets |  | $ | 105.3 |  |  | $ | 111.7 |
Current portion of long-term debt: |  |  |  |
Finance leases |  | $ | (11.2) |  |  | (10.5) |
Current portion of operating lease liabilities: |  |  |  |
Operating leases |  | (23.7) |  |  | (24.3) |
Long-term debt, less current portion: |  |  |  |
Finance leases |  | (21.8) |  |  | (23.9) |
Long-term operating lease liabilities, less current portion: |  |  |  |
Operating leases |  | (48.8) |  |  | (53.2) |
Total lease liabilities |  | $ | (105.5) |  |  | $ | (111.9) |
At June 30, 2021, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows:
(In millions) |  | Finance leases |  | Operating leases
Remainder of 2021 |  | $ | 6.7 |  |  | $ | 14.0 |
2022 |  | 10.0 |  |  | 22.1 |
2023 |  | 6.3 |  |  | 15.8 |
2024 |  | 2.4 |  |  | 10.3 |
2025 |  | 1.9 |  |  | 7.0 |
Thereafter |  | 11.8 |  |  | 12.2 |
Total lease payments |  | 39.1 |  |  | 81.4 |
Less: Interest |  | (6.1) |  |  | (8.9) |
Present value of lease liabilities |  | $ | 33.0 |  |  | $ | 72.5 |
The following lease cost is included in our Condensed Consolidated Statements of Operations:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Lease cost(1) |  |  |  |  |  |  |  |
Finance leases |  |  |  |  |  |  |  |
Amortization of ROU assets |  | $ | 2.6 |  |  | $ | 2.8 |  |  | $ | 5.2 |  |  | $ | 5.5 |
Interest on lease liabilities |  | 0.4 |  |  | 0.4 |  |  | 0.8 |  |  | 0.9 |
Operating leases |  | 7.6 |  |  | 7.8 |  |  | 15.3 |  |  | 15.9 |
Short-term lease cost |  | 1.4 |  |  | 0.8 |  |  | 2.5 |  |  | 1.7 |
Variable lease cost |  | 0.8 |  |  | 1.2 |  |  | 2.7 |  |  | 2.8 |
Total lease cost |  | $ | 12.8 |  |  | $ | 13.0 |  |  | $ | 26.5 |  |  | $ | 26.8 |
(1) With the exception of Interest on lease liabilities, we record lease costs to Cost of sales or Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations, depending on the use of the leased asset. Interest on lease liabilities is recorded to Interest expense, net on the Condensed Consolidated Statements of Operations. The following table details cash paid related to operating and financing leases included in our Condensed Consolidated Statements of Cash Flows and new ROU assets included in our Condensed Consolidated Balance Sheets:
|  | Six Months Ended June 30,
(In millions) |  | 2021 |  | 2020
Other information: |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows - finance leases |  | $ | 2.4 |  |  | $ | 2.3 |
Operating cash flows - operating leases |  | $ | 15.5 |  |  | $ | 17.5 |
Financing cash flows - finance leases |  | $ | 5.1 |  |  | $ | 5.9 |
ROU assets obtained in exchange for new finance lease liabilities |  | $ | 4.2 |  |  | $ | 5.1 |
ROU assets obtained in exchange for new operating lease liabilities |  | $ | 9.2 |  |  | $ | 9.0 |
|  | Six Months Ended June 30,
|  | 2021 |  | 2020
Weighted average information: |  |  |  |
Finance leases |  |  |  |
Remaining lease term (in years) |  | 5.9 |  | 6.1
Discount rate |  | 4.6 | % |  | 4.8 | %
Operating leases |  |  |  |
Remaining lease term (in years) |  | 4.5 |  | 4.8
Discount rate |  | 4.8 | % |  | 5.1 | %
Leases | Leases Lessor Sealed Air has contractual obligations as a lessor with respect to some of our equipment solutions including 'free on loan' equipment and leased equipment, both sales-type and operating. The consideration in a contract that contains both lease and non-lease components is allocated based on the standalone selling price. Our contractual obligations for operating leases can include termination and renewal options. Our contractual obligations for sales-type leases tend to have fixed terms and can include purchase options. We utilize the reasonably certain threshold criteria in determining which options our customers will exercise. All lease payments are primarily fixed in nature and therefore captured in the lease receivable. Our lease receivable balances at June 30, 2021 and December 31, 2020 were as follows:
(In millions) |  | June 30, 2021 |  | December 31, 2020
Short-Term (12 months or less) |  | $ | 5.8 |  |  | $ | 5.4 |
Long-Term |  | 12.8 |  |  | 11.9 |
Total lease receivables (Sales-type and Operating) |  | $ | 18.6 |  |  | $ | 17.3 |
Lessee Sealed Air has contractual obligations as a lessee with respect to warehouses, offices, manufacturing facilities, IT equipment, automobiles, and material production equipment. The following table details our lease obligations included in our Condensed Consolidated Balance Sheets.
(In millions) |  | June 30, 2021 |  | December 31, 2020
Other non-current assets: |  |  |  |
Finance leases - ROU assets |  | $ | 58.5 |  |  | $ | 58.2 |
Finance leases - Accumulated depreciation |  | (23.9) |  |  | (22.6) |
Operating lease right-of-use-assets: |  |  |  |
Operating leases - ROU assets |  | 132.8 |  |  | 127.4 |
Operating leases - Accumulated depreciation |  | (62.1) |  |  | (51.3) |
Total lease assets |  | $ | 105.3 |  |  | $ | 111.7 |
Current portion of long-term debt: |  |  |  |
Finance leases |  | $ | (11.2) |  |  | (10.5) |
Current portion of operating lease liabilities: |  |  |  |
Operating leases |  | (23.7) |  |  | (24.3) |
Long-term debt, less current portion: |  |  |  |
Finance leases |  | (21.8) |  |  | (23.9) |
Long-term operating lease liabilities, less current portion: |  |  |  |
Operating leases |  | (48.8) |  |  | (53.2) |
Total lease liabilities |  | $ | (105.5) |  |  | $ | (111.9) |
At June 30, 2021, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows:
(In millions) |  | Finance leases |  | Operating leases
Remainder of 2021 |  | $ | 6.7 |  |  | $ | 14.0 |
2022 |  | 10.0 |  |  | 22.1 |
2023 |  | 6.3 |  |  | 15.8 |
2024 |  | 2.4 |  |  | 10.3 |
2025 |  | 1.9 |  |  | 7.0 |
Thereafter |  | 11.8 |  |  | 12.2 |
Total lease payments |  | 39.1 |  |  | 81.4 |
Less: Interest |  | (6.1) |  |  | (8.9) |
Present value of lease liabilities |  | $ | 33.0 |  |  | $ | 72.5 |
The following lease cost is included in our Condensed Consolidated Statements of Operations:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Lease cost(1) |  |  |  |  |  |  |  |
Finance leases |  |  |  |  |  |  |  |
Amortization of ROU assets |  | $ | 2.6 |  |  | $ | 2.8 |  |  | $ | 5.2 |  |  | $ | 5.5 |
Interest on lease liabilities |  | 0.4 |  |  | 0.4 |  |  | 0.8 |  |  | 0.9 |
Operating leases |  | 7.6 |  |  | 7.8 |  |  | 15.3 |  |  | 15.9 |
Short-term lease cost |  | 1.4 |  |  | 0.8 |  |  | 2.5 |  |  | 1.7 |
Variable lease cost |  | 0.8 |  |  | 1.2 |  |  | 2.7 |  |  | 2.8 |
Total lease cost |  | $ | 12.8 |  |  | $ | 13.0 |  |  | $ | 26.5 |  |  | $ | 26.8 |
(1) With the exception of Interest on lease liabilities, we record lease costs to Cost of sales or Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations, depending on the use of the leased asset. Interest on lease liabilities is recorded to Interest expense, net on the Condensed Consolidated Statements of Operations. The following table details cash paid related to operating and financing leases included in our Condensed Consolidated Statements of Cash Flows and new ROU assets included in our Condensed Consolidated Balance Sheets:
|  | Six Months Ended June 30,
(In millions) |  | 2021 |  | 2020
Other information: |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows - finance leases |  | $ | 2.4 |  |  | $ | 2.3 |
Operating cash flows - operating leases |  | $ | 15.5 |  |  | $ | 17.5 |
Financing cash flows - finance leases |  | $ | 5.1 |  |  | $ | 5.9 |
ROU assets obtained in exchange for new finance lease liabilities |  | $ | 4.2 |  |  | $ | 5.1 |
ROU assets obtained in exchange for new operating lease liabilities |  | $ | 9.2 |  |  | $ | 9.0 |
|  | Six Months Ended June 30,
|  | 2021 |  | 2020
Weighted average information: |  |  |  |
Finance leases |  |  |  |
Remaining lease term (in years) |  | 5.9 |  | 6.1
Discount rate |  | 4.6 | % |  | 4.8 | %
Operating leases |  |  |  |
Remaining lease term (in years) |  | 4.5 |  | 4.8
Discount rate |  | 4.8 | % |  | 5.1 | %

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 finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + 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 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + 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 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration