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LEASES

3 Months Ended

Mar. 31, 2021

7. LEASES

The Company’s leases 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, 2020.

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, 2021 and 2020 consisted of the following:


		Three Months Ended
		March 31,
(In millions)		2021			2020
Operating lease cost		$	25.3		$	20.0
Short-term lease cost			2.0			0.1
Variable lease cost			0.2			0.2
Total lease cost		$	27.5		$	20.3

Sale and Leaseback of Equipment: There were no sale and leaseback transactions during the three months ended March 31, 2021. 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.