LEASES

12 Months Ended

Dec. 31, 2019

LEASES

LEASES

11. LEASES

The Company has operating leases for general office properties, warehouses, data centers, call centers, automobiles and certain equipment. As of December 31, 2019, the Company’s leases have remaining lease terms of less than 1 year to 19 years, some of which may include renewal options. For leases in which the implicit rate is not readily determinable, the Company uses its incremental borrowing rate as of the lease commencement date to determine the present value of the lease payments. The incremental borrowing rate is based on the Company’s specific rate of interest to borrow on a collateralized basis, over a similar term and in a similar economic environment as the lease.

Leases with an initial term of 12 months or less are not recognized on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Additionally, the Company accounts for lease and nonlease components as a single lease component for its identified asset classes.

The components of lease expense were as follows:

	Year Ended
	December 31, 2019
	(in millions)
Operating lease cost	$	41.1
Short-term lease cost		2.7
Variable lease cost		6.8
Total	$	50.6

Lease expense was $47.5 million and $67.3 million for the years ended December 31, 2018 and 2017, respectively.

Other information related to leases was as follows:

	December 31,
	2019
Weighted-average remaining lease term (in years):
Operating leases		11.5
Weighted-average discount rate:
Operating leases		5.2%

Supplemental cash flow information related to leases was as follows:

	Year Ended
	December 31, 2019
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	46.6
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	28.4

Maturities of the lease liabilities as of December 31, 2019 were as follows:

	Operating
Year	Leases
	(in millions)
2020	$	38.4
2021		39.6
2022		38.6
2023		36.8
2024		35.6
Thereafter		237.4
Total undiscounted lease liabilities		426.4
Less: Amount representing interest		(112.1)
Total present value of minimum lease payments	$	314.3
Amounts recognized in the December 31, 2019 consolidated balance sheet:
Current operating lease liabilities	$	22.6
Long-term operating lease liabilities		291.7
Total	$	314.3

Under ASC 840, future annual minimum rental payments required under noncancellable operating leases as of December 31, 2018 were as follows:

	Operating
Year	Leases
	(in millions)
2019	$	42.0
2020		39.9
2021		37.7
2022		36.8
2023		35.6
Thereafter		256.4
Total	$	448.4