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LEASES | 3 Months Ended
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Mar. 31, 2020
LEASES |
LEASES | 7. LEASES ​ Description of Operating Leases: The Company has different types of operating leases, the specific terms and conditions of which vary from lease to lease. Certain operating lease agreements include terms such as: (i) renewal and early termination options; (ii) early buy-out and purchase options; and (iii) rent escalation clauses. The lease agreements also include provisions for the maintenance of the leased asset and payment of lease related costs. The Company reviews the specific terms and conditions of each lease and, as appropriate, notifies the lessor of any intent to exercise any option in accordance with the terms of the lease. In the normal course of business, the Company expects to be able to renew or replace most of its operating leases with other similar leases as they expire. Except for the residual value guarantee described below, the Company’s leases do not contain any other residual value guarantees. ​ The Company’s sub-lease income was nominal to the Company’s Condensed Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2020 and 2019. The Company did not have any finance leases during the three months ended March 31, 2020 and 2019. Certain of the Company’s lease agreements include rental payments that may be adjusted in the future based on economic conditions and others include rental payments adjusted periodically for inflation. Variable lease expense is disclosed for the adjusted portion of such payments. ​ The lease type by underlying asset class and maximum terms of the Company’s operating leases are as follows: ​
​ | ​ | ​
Lease Type: |  | Life
Real estate and terminal leases |  | 65 years
Vessel charter leases |  | 10 years
Operations equipment and other leases |  | 8 years
​ Incremental Borrowing Rate: As most of the Company’s operating leases do not provide an implicit rate, the Company uses an estimated incremental borrowing rate based on information available at the lease commencement dates in calculating the present value of its operating lease liabilities. The incremental borrowing rate is determined using the U.S. Treasury rate adjusted to account for the Company’s credit rating and the collateralized nature of operating leases. ​ Components of Lease Cost: Components of lease cost recorded in the Company’s Condensed Consolidated Statement of Income and Comprehensive Income for the three months ended March 31, 2020 and 2019 consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended
​ | ​ | March 31,
(In millions) |  | 2020 | ​ | 2019
Operating lease cost | ​ | $ | 20.0 | ​ | $ | 16.7
Short-term lease cost | ​ |  | 0.1 | ​ |  | 2.4
Variable lease cost | ​ |  | 0.2 | ​ |  | 0.1
Total lease cost | ​ | $ | 20.3 | ​ | $ | 19.2
​ Sale and Leaseback of Equipment: On March 25, 2020, the Company entered into an agreement for the sale and leaseback of multiple tranches of chassis and container equipment. The net proceeds from the sales were $14.3 million, and the gain on the disposal of the equipment was not material to the Company’s Condensed Consolidated Financial Statements. The Company subsequently leased back the equipment under a five-year operating lease agreement that includes purchase options exercisable at fair market value. The Company has included the right of use asset and related lease liabilities in other lease information below. There were no sale and leaseback transactions during the three months ended March 31, 2019. ​ Other Lease Information: Other information related to the Company’s operating leases for the three months ended March 31, 2020 and 2019 consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended
​ | ​ | March 31,
(In millions) |  | 2020 | ​ | 2019
Cash paid for amounts included in operating lease liabilities | ​ | $ | 20.5 | ​ | $ | 16.7
Right of use assets obtained in the exchange for new operating lease liabilities | ​ | $ | 16.1 | ​ | $ | 5.8
​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2020 |  | December 31, 2019
Weighted average remaining operating lease term | ​ | ​ | 7.4 years | ​ | ​ | 7.5 years
Weighted average incremental borrowing rate | ​ | ​ | 4.1% | ​ | ​ | 4.2%
​ Maturities of operating lease liabilities at March 31, 2020 are as follows: ​
​ | ​ | ​ | ​
​ |  | As of
Year (in millions) |  | March 31, 2020
2020 | ​ | $ | 58.7
2021 | ​ |  | 58.4
2022 | ​ |  | 46.7
2023 | ​ |  | 41.2
2024 | ​ |  | 26.2
Thereafter | ​ |  | 79.8
Total lease payments | ​ | ​ | 311.0
Less: Interest | ​ | ​ | (48.3)
Present value of operating lease liabilities | ​ | ​ | 262.7
Less: Short-term portion | ​ | ​ | (65.5)
Long-term operating lease liabilities | ​ | $ | 197.2
​ Vessel Charter: On November 26, 2018, a wholly-owned subsidiary of the Company entered into a Bareboat Charter Agreement (the “Charter”). Charter lease payments are approximately $3.0 million per quarter and are included in the operating lease liabilities described above. The base term of the Charter is five years with a two year end-of-term renewal option. The Charter also includes a maximum residual value guarantee amount of $50.9 million after five years, or $47.7 million after the extended term. The residual value guarantee is excluded from operating lease liabilities described above as the Company determined that it is not probable that any portion of the residual value guarantee will be paid by the Company. The Charter and residual value guarantee are described in Note 9 to the Consolidated Financial Statements included in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

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- 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
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