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Leases
 6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases Leases

We enter into lease arrangements for the use of offices, operational facilities, vehicles, vessels, storage tanks and other assets for our operations around the world. Some of these leases are embedded within other arrangements. When an arrangement includes both lease and non-lease components, we have elected to combine them and treat them as a lease component for all of our current leased asset classes.

Determining whether a contract contains a lease includes judgment regarding whether the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Assessing whether we have obtained the right to substantially all of the economic benefits and the ability to direct how, and for what purpose, the asset is used requires more judgment in storage arrangements where we must determine whether our rights to capacity may represent substantially all of the available capacity at a location.

Some of these arrangements are for periods of twelve months or less, while others are for longer periods, and may include optional renewals, terminations or purchase options, which are considered in our assessments when they are reasonably certain to occur. In addition, certain of these arrangements contain payments based on an index, market-based escalation or volume which may impact future payments. Most of our leases typically contain general covenants, restrictions or requirements such as maintaining minimum insurance coverage.

We account for our lease-related assets and liabilities based on their classification as operating leases or finance leases, following the relevant accounting guidance. We measure lease related assets and liabilities based on the present value of lease payments, including in-substance fixed payments, variable payments that depend on an index or rate measured at the commencement date, and the amount we believe is probable we will pay the lessor under residual value guarantees when applicable. We discount lease payments based on our estimated incremental borrowing rate at lease commencement (or modification), which is primarily based on our estimated credit rating, the lease term at commencement, and the contract currency of the lease arrangement. We have elected to exclude short term leases (leases with an original lease term less than one year) from the measurement of lease related assets and liabilities.







For the quarter ended June 30, 2019, we recognized the following related to our lease arrangements (in millions):
 
For the Three Months Ended
 
For the Six Months Ended
 
 June 30, 2019
 
 June 30, 2019
Finance lease cost:
 
 
 
Amortization of right-of-use assets
$
1.1

 
$
2.4

Interest on lease liabilities
0.2

 
0.4

Operating lease cost
13.4

 
26.5

Short-term lease cost
5.0

 
9.5

Variable lease cost
(1.3
)
 
2.3

Sublease income
(2.5
)
 
(5.0
)
Total lease cost
$
15.9

 
$
36.1




As of June 30, 2019, our remaining lease payments were as follows (in millions):
 
Operating Leases
 
Finance Leases
2019 (excluding the six months ended June 30, 2019)
$
25.5

 
$
2.1

2020
40.5

 
4.1

2021
32.2

 
3.2

2022
25.6

 
2.8

2023
20.7

 
2.2

Thereafter
61.0

 
3.2

Total remaining lease payments (undiscounted)
205.5

 
17.6

Less: imputed interest
36.8

 
1.6

Present value of lease liabilities
$
168.7

 
$
16.0




As of December 31, 2018, our future minimum lease payments under noncancelable operating leases were as follows (in millions):
Year Ended December 31,
2019
$
50.7

2020
37.1

2021
30.7

2022
23.7

2023
17.8

Thereafter
48.5

 
$
208.6




Supplemental balance sheet information related to leases (in millions):
 
Classification
 
As of June 30, 2019
Assets
 
 
 
Operating Lease Assets
Identifiable intangible and other non-current assets
 
$
161.9

Finance Lease Assets
Property and equipment, net
 
15.5

 
 
 
 
Liabilities
 
 
 
Operating Lease Liability - Current
Accrued expenses and other current liabilities
 
33.4

Operating Lease Liability - Long Term
Other long-term liabilities
 
135.3

Finance Lease Liability - Current
Current maturities of long-term debt and capital leases
 
3.7

Finance Lease Liability - Long Term
Long-term debt
 
12.3




Other information related to leases as of June 30, 2019:
 
Operating Leases
 
Finance Leases
Weighted-average remaining lease term (years)
6.4

 
5.5

Weighted-average discount rate
6.0
%
 
2.7
%
Cash paid for amounts included in the measurement of lease liabilities (in millions):
 
 
 
Operating cash flows from finance leases
$
—

 
$
0.3

Operating cash flows from operating leases
26.5

 
—

Financing cash flows from finance leases
—

 
1.8

Right of use assets obtained in exchange for new operating lease liability (noncash in millions)
15.8

 
—

Right of use assets obtained in exchange for new financing lease liability (noncash in millions)
—

 
4.0
Leases Leases

We enter into lease arrangements for the use of offices, operational facilities, vehicles, vessels, storage tanks and other assets for our operations around the world. Some of these leases are embedded within other arrangements. When an arrangement includes both lease and non-lease components, we have elected to combine them and treat them as a lease component for all of our current leased asset classes.

Determining whether a contract contains a lease includes judgment regarding whether the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Assessing whether we have obtained the right to substantially all of the economic benefits and the ability to direct how, and for what purpose, the asset is used requires more judgment in storage arrangements where we must determine whether our rights to capacity may represent substantially all of the available capacity at a location.

Some of these arrangements are for periods of twelve months or less, while others are for longer periods, and may include optional renewals, terminations or purchase options, which are considered in our assessments when they are reasonably certain to occur. In addition, certain of these arrangements contain payments based on an index, market-based escalation or volume which may impact future payments. Most of our leases typically contain general covenants, restrictions or requirements such as maintaining minimum insurance coverage.

We account for our lease-related assets and liabilities based on their classification as operating leases or finance leases, following the relevant accounting guidance. We measure lease related assets and liabilities based on the present value of lease payments, including in-substance fixed payments, variable payments that depend on an index or rate measured at the commencement date, and the amount we believe is probable we will pay the lessor under residual value guarantees when applicable. We discount lease payments based on our estimated incremental borrowing rate at lease commencement (or modification), which is primarily based on our estimated credit rating, the lease term at commencement, and the contract currency of the lease arrangement. We have elected to exclude short term leases (leases with an original lease term less than one year) from the measurement of lease related assets and liabilities.







For the quarter ended June 30, 2019, we recognized the following related to our lease arrangements (in millions):
 
For the Three Months Ended
 
For the Six Months Ended
 
 June 30, 2019
 
 June 30, 2019
Finance lease cost:
 
 
 
Amortization of right-of-use assets
$
1.1

 
$
2.4

Interest on lease liabilities
0.2

 
0.4

Operating lease cost
13.4

 
26.5

Short-term lease cost
5.0

 
9.5

Variable lease cost
(1.3
)
 
2.3

Sublease income
(2.5
)
 
(5.0
)
Total lease cost
$
15.9

 
$
36.1




As of June 30, 2019, our remaining lease payments were as follows (in millions):
 
Operating Leases
 
Finance Leases
2019 (excluding the six months ended June 30, 2019)
$
25.5

 
$
2.1

2020
40.5

 
4.1

2021
32.2

 
3.2

2022
25.6

 
2.8

2023
20.7

 
2.2

Thereafter
61.0

 
3.2

Total remaining lease payments (undiscounted)
205.5

 
17.6

Less: imputed interest
36.8

 
1.6

Present value of lease liabilities
$
168.7

 
$
16.0




As of December 31, 2018, our future minimum lease payments under noncancelable operating leases were as follows (in millions):
Year Ended December 31,
2019
$
50.7

2020
37.1

2021
30.7

2022
23.7

2023
17.8

Thereafter
48.5

 
$
208.6




Supplemental balance sheet information related to leases (in millions):
 
Classification
 
As of June 30, 2019
Assets
 
 
 
Operating Lease Assets
Identifiable intangible and other non-current assets
 
$
161.9

Finance Lease Assets
Property and equipment, net
 
15.5

 
 
 
 
Liabilities
 
 
 
Operating Lease Liability - Current
Accrued expenses and other current liabilities
 
33.4

Operating Lease Liability - Long Term
Other long-term liabilities
 
135.3

Finance Lease Liability - Current
Current maturities of long-term debt and capital leases
 
3.7

Finance Lease Liability - Long Term
Long-term debt
 
12.3




Other information related to leases as of June 30, 2019:
 
Operating Leases
 
Finance Leases
Weighted-average remaining lease term (years)
6.4

 
5.5

Weighted-average discount rate
6.0
%
 
2.7
%
Cash paid for amounts included in the measurement of lease liabilities (in millions):
 
 
 
Operating cash flows from finance leases
$
—

 
$
0.3

Operating cash flows from operating leases
26.5

 
—

Financing cash flows from finance leases
—

 
1.8

Right of use assets obtained in exchange for new operating lease liability (noncash in millions)
15.8

 
—

Right of use assets obtained in exchange for new financing lease liability (noncash in millions)
—

 
4.0