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LEASES | 9 Months Ended
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Sep. 30, 2019
Leases [Abstract] |
Leases | LEASES The Company leases real estate, automobiles and equipment under various operating and finance leases. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the implicit rate is not readily determinable in most of the Company’s lease agreements, the Company uses its estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Beginning January 1, 2019, any new real estate and equipment operating lease agreements with lease and nonlease components, will be accounted for as a single lease component; auto leases will be accounted for as separate lease components. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining lease terms of approximately 1 year to 11 years. Many of the Company's real estate and equipment leases have one or more options to renew, with terms that can extend primarily from 1 year to 3 years, which are not included in the initial lease term. The Company does not have lease agreements with residual value guarantees, sale-and-leaseback terms, or material restrictive covenants. The Company does not have any material sublease arrangements. The net present value of finance and operating lease assets and liabilities were as follows:
(in millions, except percentages) |  | Location in the Consolidated Balance Sheets |  | September 30, 2019
Assets |  |  |  |
Current assets |  |  |  |
Finance leases |  | Property, plant, and equipment, net |  | $ | 1.5 |
Operating leases |  | Operating lease right-of-use assets, net |  | 156.7 |
Total right-of-use assets |  |  |  | $ | 158.2 |
Liabilities |  |  |  |
Current liabilities |  |  |  |
Finance leases |  | Notes payable and current portion of long-term debt |  | $ | 0.2 |
Operating leases |  | Accrued liabilities |  | 41.6 |
Noncurrent liabilities |  |  |  |
Finance leases |  | Long-term debt |  | 1.3 |
Operating leases |  | Operating lease liability |  | 118.5 |
Total lease liabilities |  |  |  | $ | 161.6 |
Supplemental information: |  |  |  |
Weighted-average discount rate |  |  |  |
Finance leases |  |  |  | 3.6 | %
Operating leases |  |  |  | 2.9 | %
Weighted-average remaining lease term in years |  |  |  |
Finance leases |  |  |  | 7.2
Operating leases |  |  |  | 5.5
The lease cost recognized in the Consolidated Statements of Operations for the three and nine months ended September 30, 2019 were as follows:
(in millions) |  |  | Three Months Ended |  | Nine Months Ended
Finance lease cost |  |  |  |  |
Amortization of right-of-use assets |  |  | $ | 0.1 |  |  | $ | 0.2 |
Operating lease cost |  |  | 13.8 |  |  | 39.5 |
Short-term lease cost |  |  | 0.3 |  |  | 0.7 |
Variable lease cost |  |  | 2.2 |  |  | 6.1 |
Total lease cost |  |  | $ | 16.4 |  |  | $ | 46.5 |
The contractual maturity dates of the remaining lease liabilities at September 30, 2019 were as follows:
(in millions) |  | Finance Leases |  | Operating Leases |  | Total
2019, excluding the nine months ended September 30, 2019 |  | $ | 0.1 |  |  | $ | 12.0 |  |  | $ | 12.1 |
2020 |  | 0.3 |  |  | 43.3 |  |  | 43.6 |
2021 |  | 0.3 |  |  | 33.0 |  |  | 33.3 |
2022 |  | 0.2 |  |  | 24.3 |  |  | 24.5 |
2023 |  | 0.2 |  |  | 18.6 |  |  | 18.8 |
2024 and beyond |  | 0.7 |  |  | 44.1 |  |  | 44.8 |
Total lease payments |  | $ | 1.8 |  |  | $ | 175.3 |  |  | $ | 177.1 |
Less imputed interest |  | 0.3 |  |  | 15.2 |  |  | 15.5 |
Present value of lease liabilities |  | $ | 1.5 |  |  | $ | 160.1 |  |  | $ | 161.6 |
The contractual maturity dates presented under prior lease accounting guidance of the remaining rental commitments at December 31, 2018 were as follows:
(in millions) |  | Finance Leases |  | Operating Leases |  | Total
2019 |  | $ | 4.2 |  |  | $ | 36.6 |  |  | $ | 40.8 |
2020 |  | 4.2 |  |  | 28.5 |  |  | 32.7 |
2021 |  | 2.5 |  |  | 22.1 |  |  | 24.6 |
2022 |  | 1.8 |  |  | 16.4 |  |  | 18.2 |
2023 |  | 1.3 |  |  | 12.7 |  |  | 14.0 |
2024 and beyond |  | 1.1 |  |  | 16.9 |  |  | 18.0 |
Total lease payments |  | $ | 15.1 |  |  | $ | 133.2 |  |  | $ | 148.3 |
The supplemental cash flow information for the three and nine months ended September 30, 2019 were as follows:
(in millions) |  | Three Months Ended |  | Nine Months Ended
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 14.3 |  |  | $ | 39.5 |
Financing cash flows from finance leases |  | — |  |  | 0.2 |
Right-of-use assets obtained in exchange for new lease liabilities: |  |  |  |
Operating leases |  | $ | 17.0 |  |  | $ | 22.8 |
Leases | LEASES The Company leases real estate, automobiles and equipment under various operating and finance leases. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the implicit rate is not readily determinable in most of the Company’s lease agreements, the Company uses its estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Beginning January 1, 2019, any new real estate and equipment operating lease agreements with lease and nonlease components, will be accounted for as a single lease component; auto leases will be accounted for as separate lease components. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining lease terms of approximately 1 year to 11 years. Many of the Company's real estate and equipment leases have one or more options to renew, with terms that can extend primarily from 1 year to 3 years, which are not included in the initial lease term. The Company does not have lease agreements with residual value guarantees, sale-and-leaseback terms, or material restrictive covenants. The Company does not have any material sublease arrangements. The net present value of finance and operating lease assets and liabilities were as follows:
(in millions, except percentages) |  | Location in the Consolidated Balance Sheets |  | September 30, 2019
Assets |  |  |  |
Current assets |  |  |  |
Finance leases |  | Property, plant, and equipment, net |  | $ | 1.5 |
Operating leases |  | Operating lease right-of-use assets, net |  | 156.7 |
Total right-of-use assets |  |  |  | $ | 158.2 |
Liabilities |  |  |  |
Current liabilities |  |  |  |
Finance leases |  | Notes payable and current portion of long-term debt |  | $ | 0.2 |
Operating leases |  | Accrued liabilities |  | 41.6 |
Noncurrent liabilities |  |  |  |
Finance leases |  | Long-term debt |  | 1.3 |
Operating leases |  | Operating lease liability |  | 118.5 |
Total lease liabilities |  |  |  | $ | 161.6 |
Supplemental information: |  |  |  |
Weighted-average discount rate |  |  |  |
Finance leases |  |  |  | 3.6 | %
Operating leases |  |  |  | 2.9 | %
Weighted-average remaining lease term in years |  |  |  |
Finance leases |  |  |  | 7.2
Operating leases |  |  |  | 5.5
The lease cost recognized in the Consolidated Statements of Operations for the three and nine months ended September 30, 2019 were as follows:
(in millions) |  |  | Three Months Ended |  | Nine Months Ended
Finance lease cost |  |  |  |  |
Amortization of right-of-use assets |  |  | $ | 0.1 |  |  | $ | 0.2 |
Operating lease cost |  |  | 13.8 |  |  | 39.5 |
Short-term lease cost |  |  | 0.3 |  |  | 0.7 |
Variable lease cost |  |  | 2.2 |  |  | 6.1 |
Total lease cost |  |  | $ | 16.4 |  |  | $ | 46.5 |
The contractual maturity dates of the remaining lease liabilities at September 30, 2019 were as follows:
(in millions) |  | Finance Leases |  | Operating Leases |  | Total
2019, excluding the nine months ended September 30, 2019 |  | $ | 0.1 |  |  | $ | 12.0 |  |  | $ | 12.1 |
2020 |  | 0.3 |  |  | 43.3 |  |  | 43.6 |
2021 |  | 0.3 |  |  | 33.0 |  |  | 33.3 |
2022 |  | 0.2 |  |  | 24.3 |  |  | 24.5 |
2023 |  | 0.2 |  |  | 18.6 |  |  | 18.8 |
2024 and beyond |  | 0.7 |  |  | 44.1 |  |  | 44.8 |
Total lease payments |  | $ | 1.8 |  |  | $ | 175.3 |  |  | $ | 177.1 |
Less imputed interest |  | 0.3 |  |  | 15.2 |  |  | 15.5 |
Present value of lease liabilities |  | $ | 1.5 |  |  | $ | 160.1 |  |  | $ | 161.6 |
The contractual maturity dates presented under prior lease accounting guidance of the remaining rental commitments at December 31, 2018 were as follows:
(in millions) |  | Finance Leases |  | Operating Leases |  | Total
2019 |  | $ | 4.2 |  |  | $ | 36.6 |  |  | $ | 40.8 |
2020 |  | 4.2 |  |  | 28.5 |  |  | 32.7 |
2021 |  | 2.5 |  |  | 22.1 |  |  | 24.6 |
2022 |  | 1.8 |  |  | 16.4 |  |  | 18.2 |
2023 |  | 1.3 |  |  | 12.7 |  |  | 14.0 |
2024 and beyond |  | 1.1 |  |  | 16.9 |  |  | 18.0 |
Total lease payments |  | $ | 15.1 |  |  | $ | 133.2 |  |  | $ | 148.3 |
The supplemental cash flow information for the three and nine months ended September 30, 2019 were as follows:
(in millions) |  | Three Months Ended |  | Nine Months Ended
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 14.3 |  |  | $ | 39.5 |
Financing cash flows from finance leases |  | — |  |  | 0.2 |
Right-of-use assets obtained in exchange for new lease liabilities: |  |  |  |
Operating leases |  | $ | 17.0 |  |  | $ | 22.8 |

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- 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
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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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