Leases (Notes)

6 Months Ended

Jun. 30, 2019

13.

Leases

We lease facilities, vehicles and equipment under the operating lease agreements, which include both monthly and longer-term arrangements.

Certain operating leases for vehicles contain residual value guarantee provisions, which would become due at the expiration of the operating lease agreement if the fair value of the leased vehicles is less than the guaranteed residual value. As of June 30, 2019, of those leases that contain residual value guarantees, the aggregate residual value at lease expiration was $13.7 million, of which we have guaranteed $8.5 million. As of June 30, 2019, we have recorded a liability for the estimated end of term loss related to this residual value guarantee of $0.3 million for certain vehicles within our fleet.

The lease assets and liabilities as of June 30, 2019 are as follows:



		June 30,
Leases	Classification	2019
Assets
Operating lease assets	Operating Lease Assets	$	45.4
Finance lease assets	Property, Plant and Equipment^(a)	0.4
Total leased assets		$	45.8
Liabilities
Current
Operating	Other Current Liabilities	$	17.2
Finance	Current Portion of Long-term Debt	0.2
Noncurrent
Operating	Long-term Operating Lease Liabilities	29.1
Finance	Long-term Debt	0.2
Total lease liabilities		$	46.7

^(a)Finance lease assets are recorded net of accumulated amortization of $0.5 million as of June 30, 2019.

The lease cost for the three and six months ended June 30, 2019 and 2018 was as follows:



	Three Months Ended					Six Months Ended
	June 30					June 30
Lease Cost	2019			2018		2019			2018
Operating lease cost	$	5.7	^(a)	$	5.3	$	11.3	^(a)	$	10.7
Finance lease cost^(b)	0.1			—		0.2			—
Net lease cost	$	5.8		$	5.3	$	11.5		$	10.7


^(a)	Includes short-term lease costs of $0.8 million and $1.4 million for the three and six months ended June 30, 2019, respectively, and variable lease costs of $1.0 million and $1.6 million for the three and six months ended June 30, 2019, respectively.

^(b)Includes amortization of leased assets and interest on lease liabilities.

The maturity of lease liabilities at June 30, 2019 was as follows:



Maturity of Lease Liabilities	Operating Leases			Finance Leases		Total
Remaining 2019	$	10.1		$	0.1	$	10.2
2020	14.9			0.2		15.1
2021	9.8			0.1		9.9
2022	5.8			—		5.8
2023	4.4			—		4.4
Thereafter	4.8			—		4.8
Total lease payments	$	49.8		$	0.4	$	50.2
Less: Interest	(3.5		)	—		(3.5		)
Present value of lease liabilities	$	46.3		$	0.4	$	46.7

The minimum rentals for aggregate lease commitments as of December 31, 2018 were as follows:



2019	$	15.2
2020	9.0
2021	5.5
2022	3.6
2023	2.6
Thereafter	4.2
Total	$	40.1

The lease term and discount rate at June 30, 2019 were as follows:



	June 30,
Lease Term and Discount Rate	2019
Weighted-average remaining lease term (years)
Operating leases	3.8
Finance leases	1.7
Weighted-average discount rate
Operating leases	3.5	%
Finance leases	2.5	%

Other information related to cash paid related to lease liabilities and lease assets obtained for the six months ended June 30, 2019 was as follows:



	Six Months Ended
	June 30,
Other Information	2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	—
Operating cash flows from operating leases	11.3
Financing cash flows from finance leases	0.2
Lease assets obtained in exchange for new finance lease liabilities	0.1
Lease assets obtained in exchange for new operating lease liabilities	12.7