XML 26 R14.htm IDEA: XBRL DOCUMENT
v3.21.2

Leases | 6 Months Ended
--- | ---
Jun. 30, 2021
Leases [Abstract] |
Leases | Leases We lease office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from one to 20 years, with some leases having terms greater than 20 years. Our lease portfolio includes agreements with renewal options, purchase options and clauses for early termination based on the terms specific to the agreement. At contract inception, we review the facts and circumstances of the arrangement to determine if the contract is a lease. We follow the guidance in ASC 842-10-15 and consider the following: whether the contract has an identified asset; if we have the right to obtain substantially all economic benefits from the asset; and if we have the right to direct the use of the underlying asset. When determining if a contract has an identified asset, we consider both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if we have the right to obtain substantially all economic benefits from the asset, we consider the primary outputs of the identified asset throughout the period of use and determine if we receive greater than 90 percent of those benefits. When determining if we have the right to direct the use of an underlying asset, we consider if we have the right to direct how and for what purpose the asset is used throughout the period of use and if we control the decision-making rights over the asset. All leased assets are classified as operating or finance under ASC 842. The lease term is determined as the non-cancellable period of the lease, together with all of the following: periods covered by an option to extend the lease which are reasonably certain to be exercised, periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option, and periods covered by an option to extend (or not to terminate) the lease in which exercise of the option is controlled by the lessor. At commencement, we assess whether any options included in the lease are reasonably certain to be exercised by considering all economic factors relevant including, contract-based, asset-based, market-based, and company-based factors. To determine the present value of future minimum lease payments, we use the implicit rate when readily determinable or our incremental borrowing rate at the lease commencement date. When determining our incremental borrowing rate, we consider our centralized treasury function and our current credit profile. We then make adjustments to this rate for securitization, the length of the lease term, and leases denominated in foreign currencies. Minimum lease payments are expensed over the term of the lease on a straight-line basis. Some leases may require additional contingent or variable lease payments based on factors specific to the individual agreement. Variable lease payments for which we are typically responsible for include payment of vehicle insurance, real estate taxes, and maintenance expenses. Most leases within our portfolio are classified as operating leases under the standard. Operating leases are included in "Other assets including long-term receivables, net", "Accrued and other liabilities", and "Other long-term liabilities" in our condensed consolidated balance sheets. Operating lease right-of-use ("ROU") assets are subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of any lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Operating leases relate to office spaces, IT equipment, transportation equipment, machinery equipment, furniture and fixtures, and plant and facilities under non-cancellable lease agreements. Leases primarily have fixed rental periods, with many of the real estate leases requiring additional payments for property taxes and occupancy-related costs. Leases for real estate typically have initial terms ranging from one to 20 years, with some leases having terms greater than 20 years. Leases for non-real estate (transportation, IT) typically have initial terms ranging from one to 10 years. We have elected not to record short-term leases on the balance sheet whose term is 12 months or less and does not include a purchase option or extension that is reasonably certain to be exercised. We rent or sublease a small number of assets including equipment and office space to third party companies. These third-party arrangements include a small number of TSA arrangements from recent acquisitions. Rental income from all subleases is not material to our business. The ROU asset and lease liability balances as of June 30, 2021 and December 31, 2020 were as follows:
(in Millions) | Classification | June 30, 2021 |  | December 31, 2020
Assets |  |  |  |
Operating lease ROU assets | Other assets including long-term receivables, net | $ | 148.4 |  |  | $ | 147.3 |
Liabilities |  |  |  |
Operating lease current liabilities | Accrued and other liabilities | $ | 25.0 |  |  | $ | 25.6 |
Operating lease noncurrent liabilities | Other long-term liabilities | 151.9 |  |  | 151.1 |
The components of lease expense for the three and six months ended June 30, 2021 and 2020 were as follows:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(in Millions) | Lease Cost Classification | 2021 |  | 2020 |  | 2021 |  | 2020
Lease Cost |  |  |  |  |  |  |  |
Operating lease cost | Costs of sales and services / Selling, general and administrative expenses | $ | 8.7 |  |  | $ | 9.8 |  |  | $ | 17.3 |  |  | $ | 19.8 |
Variable lease cost | Costs of sales and services / Selling, general and administrative expenses | 1.2 |  |  | 1.2 |  |  | 2.4 |  |  | 2.6 |
Total lease cost |  | $ | 9.9 |  |  | $ | 11.0 |  |  | $ | 19.7 |  |  | $ | 22.4 |
| June 30, 2021
Operating Lease Term and Discount Rate |
Weighted-average remaining lease term (years) | 9.3
Weighted-average discount rate | 4.1 | %
| Three Months Ended June 30, |  | Six Months Ended June 30,
(in Millions) | 2021 |  | 2020 |  | 2021 |  | 2020
Other Information |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | (8.7) |  |  | $ | (9.8) |  |  | $ | (17.6) |  |  | $ | (19.9) |
Supplemental non-cash information on lease liabilities arising from obtaining right-of-use assets: |  |  |  |  |  |  |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 13.2 |  |  | $ | 2.0 |  |  | $ | 15.9 |  |  | $ | 2.9 |
The following table represents our future minimum operating lease payments as of, and subsequent to, June 30, 2021 under ASC 842:
(in Millions) |  |  |  |  | Operating Leases Total
Maturity of Lease Liabilities |  |  |  |  |
2021 (excluding the six months ending June 30, 2021) |  |  |  |  | $ | 16.1 |
2022 |  |  |  |  | 29.0 |
2023 |  |  |  |  | 23.4 |
2024 |  |  |  |  | 19.4 |
2025 |  |  |  |  | 18.4 |
Thereafter |  |  |  |  | 110.4 |
Total undiscounted lease payments |  |  |  |  | $ | 216.7 |
Less: Present value adjustment |  |  |  |  | (39.8) |
Present value of lease liabilities |  |  |  |  | $ | 176.9 |

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 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