Leases

The Company leases certain equipment, vehicles, office space, and manufacturing and distribution facilities, and recognizes the associated lease expense on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to 5 years or more. The exercise of lease renewal options is at the Company's discretion and renewal options that are reasonably certain to be exercised have been included in the lease term. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Certain lease agreements held by the Company include rental payments adjusted periodically for inflation. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of lease expense in the first quarter of 2019 were as follows:



	13 weeks ended
(In millions)	March 30, 2019
Operating lease cost ^{(a) (c)}	$	13.0
Finance lease cost
Amortization of right-of-use assets ^(a)	0.2
Interest on lease liabilities ^(b)	0.1
Total finance lease cost	$	0.3

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^(a)	Included in DS&A and cost of products sold.


^(b)	Included in interest expense.


^(c)	Includes immaterial amounts related to short-term rent expense and variable rent expense.

Supplemental cash flow information related to leases is as follows:



	13 weeks ended
(In millions)	March 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(12.6	)
Operating cash flows from finance leases	(0.1		)
Financing cash flows from finance leases	(0.3		)
Leased assets obtained in exchange for new operating lease liabilities	$	7.7

Supplemental balance sheet information related to leases is as follows:



(In millions, except lease term and discount rate)	March 30, 2019
Operating Leases
Operating lease right-of-use assets	$	82.0

Accrued liabilities	$	30.6
Operating lease liabilities	52.7
Total Operating lease liabilities	$	83.3

Finance Leases
Property, plant and equipment, at cost	$	18.2
Accumulated amortization	9.8
Property, plant and equipment, net	$	8.4

Current portion of finance lease obligations	$	1.6
Long-term finance lease obligations	3.4
Total Finance lease liabilities	$	5.0

Weighted Average Remaining Lease Term
Operating Leases	4.6 years
Finance Leases	3.2 years
Weighted Average Discount Rate ^(a)
Operating Leases	5.4		%
Finance Leases	4.8		%

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^(a)Calculated using Company's incremental borrowing rate.

Maturities of lease liabilities as of March 30, 2019 were as follows:



(In millions)	Operating Leases		Finance Leases
2019	$	27.1	$	1.5
2020	22.6		1.4
2021	14.5		1.4
2022	7.8		1.1
2023	5.0		—
Thereafter	15.9		—
Total lease payments	$	92.9	$	5.4
Less imputed interest	9.6		0.4
Total	$	83.3	$	5.0

Maturities of lease liabilities as of December 29, 2018 were as follows:



(In millions)	Operating Leases		Finance Leases
2019	$	28.3	$	1.6
2020	19.2		1.3
2021	15.8		1.4
2022	8.3		1.0
2023	6.3		—
Thereafter	25.3		—
Total	$	103.2	$	5.3

Rental expense for operating leases totaled $32.2 million and gross payments of financing leases totaled $2.5 million in fiscal year 2018.

As of March 30, 2019, the Company had an immaterial amount of operating and finance leases that had not yet commenced.