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Leases | 9 Months Ended
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Sep. 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 September 30, 2019, we recognized the following related to our lease arrangements (in millions):
| For the Three Months Ended |  | For the Nine Months Ended
| September 30, 2019 |  | September 30, 2019
Finance lease cost: |  |  |
Amortization of right-of-use assets | $ | 0.8 |  |  | $ | 3.2 |
Interest on lease liabilities | 0.7 |  |  | 1.1 |
Operating lease cost | 13.3 |  |  | 39.8 |
Short-term lease cost | 3.8 |  |  | 13.3 |
Variable lease cost | 1.2 |  |  | 3.5 |
Sublease income | (3.2 | ) |  | (8.2 | )
Total lease cost | $ | 16.6 |  |  | $ | 52.7 |
As of September 30, 2019, our remaining lease payments were as follows (in millions):
| Operating Leases |  | Finance Leases
2019 (excluding the nine months ended September 30, 2019) | $ | 12.9 |  |  | $ | 1.1 |
2020 | 41.3 |  |  | 4.2 |
2021 | 33.1 |  |  | 3.3 |
2022 | 26.6 |  |  | 2.9 |
2023 | 21.7 |  |  | 2.3 |
Thereafter | 64.0 |  |  | 4.0 |
Total remaining lease payments (undiscounted) | 199.6 |  |  | 17.7 |
Less: imputed interest | 36.2 |  |  | 1.4 |
Present value of lease liabilities | $ | 163.3 |  |  | $ | 16.3 |
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 September 30, 2019
Assets |  |  |
Operating Lease Assets | Identifiable intangible and other non-current assets |  | $ | 157.7 |
Finance Lease Assets | Property and equipment, net |  | 15.0 |
Liabilities |  |  |
Operating Lease Liability - Current | Accrued expenses and other current liabilities |  | 37.3 |
Operating Lease Liability - Long Term | Other long-term liabilities |  | 126.1 |
Finance Lease Liability - Current | Current maturities of long-term debt and finance leases |  | 3.8 |
Finance Lease Liability - Long Term | Long-term debt |  | 12.5 |
Other information related to leases as of September 30, 2019:
| Operating Leases |  | Finance Leases
Weighted-average remaining lease term (years) | 6.5 |  |  | 5.5 |
Weighted-average discount rate | 6.0 | % |  | 3.1 | %
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 | 39.8 |  |  | — |
Financing cash flows from finance leases | — |  |  | 2.9 |
Right of use assets obtained in exchange for new operating lease liability (noncash in millions) | 22.1 |  |  | — |
Right of use assets obtained in exchange for new financing lease liability (noncash in millions) | — |  |  | 5.3 |
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 September 30, 2019, we recognized the following related to our lease arrangements (in millions):
| For the Three Months Ended |  | For the Nine Months Ended
| September 30, 2019 |  | September 30, 2019
Finance lease cost: |  |  |
Amortization of right-of-use assets | $ | 0.8 |  |  | $ | 3.2 |
Interest on lease liabilities | 0.7 |  |  | 1.1 |
Operating lease cost | 13.3 |  |  | 39.8 |
Short-term lease cost | 3.8 |  |  | 13.3 |
Variable lease cost | 1.2 |  |  | 3.5 |
Sublease income | (3.2 | ) |  | (8.2 | )
Total lease cost | $ | 16.6 |  |  | $ | 52.7 |
As of September 30, 2019, our remaining lease payments were as follows (in millions):
| Operating Leases |  | Finance Leases
2019 (excluding the nine months ended September 30, 2019) | $ | 12.9 |  |  | $ | 1.1 |
2020 | 41.3 |  |  | 4.2 |
2021 | 33.1 |  |  | 3.3 |
2022 | 26.6 |  |  | 2.9 |
2023 | 21.7 |  |  | 2.3 |
Thereafter | 64.0 |  |  | 4.0 |
Total remaining lease payments (undiscounted) | 199.6 |  |  | 17.7 |
Less: imputed interest | 36.2 |  |  | 1.4 |
Present value of lease liabilities | $ | 163.3 |  |  | $ | 16.3 |
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 September 30, 2019
Assets |  |  |
Operating Lease Assets | Identifiable intangible and other non-current assets |  | $ | 157.7 |
Finance Lease Assets | Property and equipment, net |  | 15.0 |
Liabilities |  |  |
Operating Lease Liability - Current | Accrued expenses and other current liabilities |  | 37.3 |
Operating Lease Liability - Long Term | Other long-term liabilities |  | 126.1 |
Finance Lease Liability - Current | Current maturities of long-term debt and finance leases |  | 3.8 |
Finance Lease Liability - Long Term | Long-term debt |  | 12.5 |
Other information related to leases as of September 30, 2019:
| Operating Leases |  | Finance Leases
Weighted-average remaining lease term (years) | 6.5 |  |  | 5.5 |
Weighted-average discount rate | 6.0 | % |  | 3.1 | %
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 | 39.8 |  |  | — |
Financing cash flows from finance leases | — |  |  | 2.9 |
Right of use assets obtained in exchange for new operating lease liability (noncash in millions) | 22.1 |  |  | — |
Right of use assets obtained in exchange for new financing lease liability (noncash in millions) | — |  |  | 5.3 |

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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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