Leases

12 Months Ended

Dec. 31, 2020

The Company leases certain manufacturing facilities, retail stores, warehouses, distribution centers, office space, land, and equipment. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years years or more. Such options are included in the lease term when it is reasonably certain that the option will be exercised. Certain lease agreements include rental payments that are variable based on usage or are adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Information on the Company’s leases is summarized as follows (in millions):


		As of December 31,
	Classification	2020		2019
Assets
Operating lease assets	Operating lease assets	$	125.4	$	110.2
Finance lease assets	Property and equipment, net (1)	11.6		12.7
Total leased assets		$	137.0	$	122.9
Liabilities
Current
Operating lease liabilities	Current operating lease liabilities	$	34.7	$	34.9
Finance lease liabilities	Current portion of debt, finance lease obligations and notes payable	1.5		1.3
Long-term
Operating lease liabilities	Long-term operating lease liabilities	92.3		77.9
Finance lease liabilities	Finance lease obligations	14.7		14.8
Total lease liabilities		$	143.2	$	128.9

(1) Finance lease assets are recorded net of accumulated amortization of $9.5 million and $7.8 million as of December 31, 2020 and 2019, respectively.


		For the Year Ended December 31,
Lease Cost	Classification	2020		2019
Operating lease cost (1)	Operating expenses and cost of sales	$	45.4	$	42.5
Finance lease cost
Amortization of leased assets	Operating expenses and cost of sales	1.5		1.5
Interest on lease liabilities	Interest expense	0.9		0.9
Sublease income	Other (income) expense, net	(2.6)		(2.4)
Total lease cost		$	45.2	$	42.5

(1) Includes short-term leases and variable lease costs, which are immaterial.


Maturity of Lease Liabilities	Operating Leases(1)		Finance Leases		Total
2021	$	38.1	$	2.3	$	40.4
2022	29.5		2.3		31.8
2023	23.3		2.3		25.6
2024	16.2		2.3		18.5
2025	11.9		2.3		14.2
Thereafter	16.2		8.6		24.8
Total lease payments	$	135.2	$	20.1	$	155.3
Less: interest	8.2		3.9
Present value of lease payments	$	127.0	$	16.2

(1) Operating lease payments include $14.7 million related to options to extend lease terms that are reasonably certain of being exercised.

Leases that the Company has signed but have not yet commenced are immaterial.


	As of December 31,
Lease Term and Discount Rate	2020		2019
Weighted-average remaining lease term (years)
Operating leases	4.88		4.47
Finance leases	8.52		9.48
Weighted-average discount rate
Operating leases	2.71	%	3.29	%
Finance leases	5.20	%	5.18	%


	For the Year Ended December 31,
Other Information	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	45.3	$	42.7
Operating cash flows from finance leases	0.8		0.9
Financing cash flows from finance leases	1.4		1.3
Leased assets obtained in exchange for new operating lease liabilities	47.7		28.8