Leases

9 Months Ended

Sep. 30, 2019

NOTE 4 – LEASES

We have operating and finance leases for toll manufacturing facilities, warehouse storage, land, buildings, plant and equipment. Our leases have remaining lease terms of

to 11 years, some of which include options to terminate the leases within 1 year.

The components of lease expense were as follows:


( in millions )	Three Months Ended September 30		Nine Months Ended September 30
	2019		2019
Finance lease cost:
Amortization of right-of-use assets	$	0.4	$	1.4
Interest on lease liabilities		0.0		0.0

Total finance lease cost		0.4		1.4
Operating lease cost		3.0		9.0
Short-term lease cost		0.8		1.7
Variable lease cost		0.1		0.3
Sub-lease income		0.0		0.0

Total lease cost	$	4.3	$	12.4

Supplemental cash flow information related to leases is as follows:


( in millions )	Three Months Ended September 30		Nine Months Ended September 30
	2019		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3.7	$	10.6
Operating cash flows from finance leases		0.5		1.6
Financing cash flows from finance leases		0.0		0.0
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	1.2	$	3.1
Finance leases		0.0		0.0

Supplemental balance sheet information related to leases is as follows:


( in millions except lease term and discount rate )	September 30 2019
Operating leases:
Operating lease right-of-use assets	$	33.8

Current portion of operating lease liabilities	$	11.0
Operating lease liabilities, net of current portion		22.8

Total operating lease liabilities	$	33.8

Finance leases:
Property, plant and equipment at cost	$	10.5
Accumulated depreciation		(8.3	)

Net property, plant and equipment, net	$	2.2

Current portion of finance leases	$	1.2
Finance leases, net of current portion		0.6

Total finance lease liabilities	$	1.8

Weighted average remaining lease term:
Operating leases		3.4 years
Finance leases		1.8 years
Weighted average discount rate:
Operating leases		3.1	%
Finance leases		2.4	%

Maturities of lease liabilities were as follows as at September 30, 2019:


( in millions )	Operating leases			Finance leases
Within one year	$	11.0		$	1.2
Year two		9.0			0.6
Year three		6.4			0.2
Year four		4.5			0.0
Year five		2.4			0.0
Thereafter		2.7			0.0

Total lease payments		36.0			2.0
Less imputed interest		(2.2	)		(0.2	)

Total	$	33.8		$	1.8

As of September 30, 2019, additional operating and finance leases that have not yet commenced are $0.2 million.

Future lease payments for all non

cancelable operating and finance leases as of December 31, 2018 are as follows, as accounted for under the previous lease standard, ASC 840. As such the amounts are not directly comparable to those included above.


( in millions )	Operating leases		Finance leases
Within one year	$	6.5	$	1.8
Year two		4.5		1.0
Year three		3.2		0.4
Year four		2.3		0.1
Year five		2.1		0.0
Thereafter		4.4		0.0

Total lease payments	$	23.0	$	3.3