XML 34 R23.htm IDEA: XBRL DOCUMENT
v3.19.2

Leases | 6 Months Ended
--- | ---
Jun. 30, 2019
Leases [Abstract] |
Leases | Leases At the beginning of the first quarter of 2019, we adopted ASC 842, Leases, using an optional transition method which allowed us to adopt the new lease standard at the adoption date, as compared to the beginning of the earliest period presented, and recognize a cumulative-effect adjustment to the beginning balance of earnings invested in the business in the period of adoption. We elected the package of practical expedients permitted under the transition guidance, which allowed us to carry forward our historical lease classification, our assessment on whether a contract is or contains a lease, and our initial direct costs for any leases that existed prior to adoption of the new standard. We also elected to combine lease and non-lease components, to keep leases with an initial term of 12 months or less off the consolidated balance sheet and recognize the associated lease payments in the consolidated statements of earnings on a straight-line basis over the lease term. The Company has operating and financing leases for field offices and various equipment. Our leases have remaining lease terms of one year to 10 years. We determine if an arrangement is a lease at inception. We recorded $74.1 million of right-of-use (“ROU”) assets within operating lease right-of-use assets, $19.8 million of current lease liabilities within operating lease liabilities, current and $54.3 million of noncurrent lease liabilities within operating lease liabilities, noncurrent in the consolidated balance sheet on the date of adoption. No adjustment to the beginning balance of earnings invested in the business was necessary as a result of adopting this standard. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Since most of the Company’s leases do not have an implicit borrowing rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our leases may include options allowing us in our sole discretion to extend or terminate the lease, and when it is reasonably certain that we will exercise those options, we will include those periods in our lease term. Variable costs, such as payments for insurance and tax payments, are expensed when the obligation for those payments is incurred. The components of lease expense were as follows (in millions of dollars):
|  |  |  | Second Quarter |  | June Year to Date
Description |  | Statement of Earnings Location |  | 2019 |  | 2019
Operating lease cost |  | Selling, general and administrative expenses |  | $ | 6.7 |  |  | $ | 13.7 |
Short-term lease cost |  | Selling, general and administrative expenses |  | 0.9 |  |  | 1.6 |
Variable lease cost |  | Selling, general and administrative expenses |  | 1.7 |  |  | 3.5 |
Total lease cost |  |  |  | $ | 9.3 |  |  | $ | 18.8 |
Supplemental consolidated balance sheet information related to leases was as follows (in millions of dollars):
Description |  | Balance Sheet Location |  | As of Second Quarter-End 2019
ROU Assets: |  |  |  |
Operating |  | Operating lease right-of-use assets |  | $ | 66.9 |
Financing |  | Property and equipment |  | 1.7 |
Total lease assets |  |  |  | $ | 68.6 |
ROU Liabilities: |  |  |  |
Operating - current |  | Operating lease liabilities, current |  | $ | 20.3 |
Financing - current |  | Accounts payable and accrued liabilities |  | 0.4 |
Operating - noncurrent |  | Operating lease liabilities, noncurrent |  | 49.3 |
Financing - noncurrent |  | Other long-term liabilities |  | 1.1 |
Total lease liabilities |  |  |  | $ | 71.1 |
Weighted average remaining lease terms and discount rates for June year to date 2019 was as follows:
| June Year to Date
| 2019
Weighted average remaining lease term (years): |
Operating leases | 4.1 |
Financing leases | 3.9 |
Weighted average discount rate: |
Operating leases | 5.9 | %
Financing leases | 5.1 | %
Other information related to leases was as follows (in millions of dollars):
| Second Quarter |  | June Year to Date
| 2019 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 6.6 |  |  | $ | 13.5 |
Financing cash flows from financing leases | 0.2 |  |  | 0.2 |
ROU assets obtained in exchange for new lease obligations: |  |  |
Operating leases | $ | 2.7 |  |  | $ | 4.0 |
Financing leases | 0.8 |  |  | 1.7 |
Maturities of lease liabilities as of second quarter-end 2019 were as follows (in millions of dollars):
| Operating Leases |  | Financing Leases
2019, remaining | $ | 12.7 |  |  | $ | 0.2 |
2020 | 21.5 |  |  | 0.5 |
2021 | 17.2 |  |  | 0.5 |
2022 | 12.0 |  |  | 0.5 |
2023 | 6.8 |  |  | — |
2024 | 3.8 |  |  | — |
Thereafter | 4.3 |  |  | — |
Total future lease payments | 78.3 |  |  | 1.7 |
Less: Imputed interest | 8.6 |  |  | 0.2 |
Total | $ | 69.7 |  |  | $ | 1.5 |
Maturities of operating leases accounted for under ASC 840 as of year-end 2018 were as follows (in millions of dollars):
Fiscal year: |
2019 | $ | 26.7 |
2020 | 20.4 |
2021 | 15.2 |
2022 | 9.8 |
2023 | 4.7 |
Later years | 4.9 |
Total | $ | 81.7 |
Leases | Leases At the beginning of the first quarter of 2019, we adopted ASC 842, Leases, using an optional transition method which allowed us to adopt the new lease standard at the adoption date, as compared to the beginning of the earliest period presented, and recognize a cumulative-effect adjustment to the beginning balance of earnings invested in the business in the period of adoption. We elected the package of practical expedients permitted under the transition guidance, which allowed us to carry forward our historical lease classification, our assessment on whether a contract is or contains a lease, and our initial direct costs for any leases that existed prior to adoption of the new standard. We also elected to combine lease and non-lease components, to keep leases with an initial term of 12 months or less off the consolidated balance sheet and recognize the associated lease payments in the consolidated statements of earnings on a straight-line basis over the lease term. The Company has operating and financing leases for field offices and various equipment. Our leases have remaining lease terms of one year to 10 years. We determine if an arrangement is a lease at inception. We recorded $74.1 million of right-of-use (“ROU”) assets within operating lease right-of-use assets, $19.8 million of current lease liabilities within operating lease liabilities, current and $54.3 million of noncurrent lease liabilities within operating lease liabilities, noncurrent in the consolidated balance sheet on the date of adoption. No adjustment to the beginning balance of earnings invested in the business was necessary as a result of adopting this standard. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Since most of the Company’s leases do not have an implicit borrowing rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our leases may include options allowing us in our sole discretion to extend or terminate the lease, and when it is reasonably certain that we will exercise those options, we will include those periods in our lease term. Variable costs, such as payments for insurance and tax payments, are expensed when the obligation for those payments is incurred. The components of lease expense were as follows (in millions of dollars):
|  |  |  | Second Quarter |  | June Year to Date
Description |  | Statement of Earnings Location |  | 2019 |  | 2019
Operating lease cost |  | Selling, general and administrative expenses |  | $ | 6.7 |  |  | $ | 13.7 |
Short-term lease cost |  | Selling, general and administrative expenses |  | 0.9 |  |  | 1.6 |
Variable lease cost |  | Selling, general and administrative expenses |  | 1.7 |  |  | 3.5 |
Total lease cost |  |  |  | $ | 9.3 |  |  | $ | 18.8 |
Supplemental consolidated balance sheet information related to leases was as follows (in millions of dollars):
Description |  | Balance Sheet Location |  | As of Second Quarter-End 2019
ROU Assets: |  |  |  |
Operating |  | Operating lease right-of-use assets |  | $ | 66.9 |
Financing |  | Property and equipment |  | 1.7 |
Total lease assets |  |  |  | $ | 68.6 |
ROU Liabilities: |  |  |  |
Operating - current |  | Operating lease liabilities, current |  | $ | 20.3 |
Financing - current |  | Accounts payable and accrued liabilities |  | 0.4 |
Operating - noncurrent |  | Operating lease liabilities, noncurrent |  | 49.3 |
Financing - noncurrent |  | Other long-term liabilities |  | 1.1 |
Total lease liabilities |  |  |  | $ | 71.1 |
Weighted average remaining lease terms and discount rates for June year to date 2019 was as follows:
| June Year to Date
| 2019
Weighted average remaining lease term (years): |
Operating leases | 4.1 |
Financing leases | 3.9 |
Weighted average discount rate: |
Operating leases | 5.9 | %
Financing leases | 5.1 | %
Other information related to leases was as follows (in millions of dollars):
| Second Quarter |  | June Year to Date
| 2019 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 6.6 |  |  | $ | 13.5 |
Financing cash flows from financing leases | 0.2 |  |  | 0.2 |
ROU assets obtained in exchange for new lease obligations: |  |  |
Operating leases | $ | 2.7 |  |  | $ | 4.0 |
Financing leases | 0.8 |  |  | 1.7 |
Maturities of lease liabilities as of second quarter-end 2019 were as follows (in millions of dollars):
| Operating Leases |  | Financing Leases
2019, remaining | $ | 12.7 |  |  | $ | 0.2 |
2020 | 21.5 |  |  | 0.5 |
2021 | 17.2 |  |  | 0.5 |
2022 | 12.0 |  |  | 0.5 |
2023 | 6.8 |  |  | — |
2024 | 3.8 |  |  | — |
Thereafter | 4.3 |  |  | — |
Total future lease payments | 78.3 |  |  | 1.7 |
Less: Imputed interest | 8.6 |  |  | 0.2 |
Total | $ | 69.7 |  |  | $ | 1.5 |
Maturities of operating leases accounted for under ASC 840 as of year-end 2018 were as follows (in millions of dollars):
Fiscal year: |
2019 | $ | 26.7 |
2020 | 20.4 |
2021 | 15.2 |
2022 | 9.8 |
2023 | 4.7 |
Later years | 4.9 |
Total | $ | 81.7 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration