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Leases
3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Leases

3)

Leases

The Company has various operating leases for real estate and non-real estate items. The non-real estate leases are mainly comprised of automobiles but also include copiers, printers and other lower-valued items. The Company does not have any finance leases.

During the three months ended March 31, 2020, the Company recorded $69.9 of right-of-use assets and lease liabilities related to two leases that commenced during the period.

The Company has existing leases that include variable lease and non-lease components that are not included in the right-of-use asset and lease liability, and are reflected as expenses in the periods incurred. Such payments primarily include common area maintenance charges and increases in rent payments that are driven by factors such as future changes in an index (e.g., the Consumer Price Index).

The elements of lease expense were as follows:

 

 

 

Three Months Ended

March 31, 2020

 

 

Three Months Ended

March 31, 2019

 

Lease Cost:

 

 

 

 

 

 

 

 

Operating lease cost(1)

 

$

7.3

 

 

$

5.0

 

Short-term lease

 

 

1.2

 

 

 

1.3

 

Total lease cost

 

$

8.5

 

 

$

6.3

 

 

 

(1)

Operating lease cost includes an immaterial amount of variable expenses and sublease rental income.

 

The weighted average discount rate and the weighted average remaining lease term were 3.2% and 13.5 years, respectively, for the three months ended March 31, 2020. The weighted average discount rate and weighted average remaining lease term were 3.8% and 4.9 years, respectively, for the period ended March 31, 2019. Operating cash flows used for operating leases for the three months ended March 31, 2020 and 2019 were $5.1 and $5.7, respectively.

 

Future lease payments under non-cancelable leases as of March 31, 2020 are detailed as follows:

 

2020 (remaining)

 

$

3.7

 

2021

 

 

18.7

 

2022

 

 

13.3

 

2023

 

 

11.9

 

2024

 

 

11.3

 

Thereafter

 

 

107.4

 

Total lease payments

 

 

166.3

 

Less: imputed interest

 

 

36.5

 

Total operating lease liabilities

 

$

129.8

 

 

The remaining 2020 lease payment amount of $3.7 is net of $13.7 of tenant improvement allowances expected to be received in 2020. Amounts presented above do not include payments relating to immaterial leases excluded from the balance sheet as part of transition elections adopted upon implementation of ASU 2016-02,“Leases”, on January 1, 2019, as well as operating leases with terms of less than twelve months. Additionally, amounts presented above exclude approximately $24.6 of lease payments (undiscounted basis) related to a lease that has not yet commenced. The lease commences later in 2020 with an expected lease term of 21 years.