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Leases

12 Months Ended

Dec. 31, 2019

The Company leases retail stores, manufacturing and distribution facilities, office space and equipment under operating lease agreements. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to several years, with the longest renewal period extending through 2042. The exercise of lease renewal options are at the Company's sole discretion. Certain leases also include options to purchase the leased property. 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.

The following table summarizes the classification of operating and finance lease assets and obligations in the Company's Consolidated Balance Sheet as of December 31, 2019:



(in millions)		December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	245.4
Finance lease assets	Property, plant and equipment, net	54.4
Total leased assets		$	299.8

Liabilities
Short-term:
Operating lease obligations	Accrued expenses and other current liabilities	$	50.8
Finance lease obligations	Current portion of long-term debt	8.2
Long-term:
Operating lease obligations	Long-term operating lease obligations	205.4
Finance lease obligations	Long-term debt, net	55.9
Total lease obligations		$	320.3

The following table summarizes the classification of lease expense in the Company's Consolidated Statement of Income for the year ended December 31, 2019:



	Twelve months ended
(in millions)	December 31, 2019
Operating lease expense:
Operating lease expense	$	63.8
Short-term lease expense	9.0
Variable lease expense	18.8
Finance lease expense:
Amortization of right-of-use assets	8.5
Interest on lease obligations	4.7
Total lease expense	$	104.8

The following table sets forth the scheduled maturities of lease obligations as of December 31, 2019:



(in millions)	Operating Leases			Finance Leases			Total
Year Ended December 31,
2020	$	62.1		$	12.3		$	74.4
2021	54.5			12.0			66.5
2022	46.6			9.8			56.4
2023	36.2			7.8			44.0
2024	29.0			6.2			35.2
Thereafter	74.5			36.3			110.8
Total lease payments	302.9			84.4			387.3
Less: Interest	(46.7		)	(20.3		)	(67.0		)
Present value of lease obligations	$	256.2		$	64.1		$	320.3

The following table provides lease term and discount rate information related to operating and finance leases as of December 31, 2019:



	December 31, 2019
Weighted average remaining lease term (years):
Operating leases	6.43
Finance leases	9.03

Weighted average discount rate:
Operating leases	5.42	%
Finance leases	6.27	%

The following table provides supplemental information related to the Company's Consolidated Statement of Cash Flows for the year ended December 31, 2019:



	Twelve months ended
(in millions)	December 31, 2019
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows paid for operating leases	$	62.7
Operating cash flows paid for finance leases	$	3.7
Financing cash flows paid for finance leases	$	7.7

Right-of-use assets obtained in exchange for new operating lease obligations	$	60.9
Right-of-use assets obtained in exchange for new finance lease obligations	$	4.1

Leases

The following table summarizes the classification of operating and finance lease assets and obligations in the Company's Consolidated Balance Sheet as of December 31, 2019:



(in millions)		December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	245.4
Finance lease assets	Property, plant and equipment, net	54.4
Total leased assets		$	299.8

Liabilities
Short-term:
Operating lease obligations	Accrued expenses and other current liabilities	$	50.8
Finance lease obligations	Current portion of long-term debt	8.2
Long-term:
Operating lease obligations	Long-term operating lease obligations	205.4
Finance lease obligations	Long-term debt, net	55.9
Total lease obligations		$	320.3

The following table summarizes the classification of lease expense in the Company's Consolidated Statement of Income for the year ended December 31, 2019:



	Twelve months ended
(in millions)	December 31, 2019
Operating lease expense:
Operating lease expense	$	63.8
Short-term lease expense	9.0
Variable lease expense	18.8
Finance lease expense:
Amortization of right-of-use assets	8.5
Interest on lease obligations	4.7
Total lease expense	$	104.8

The following table sets forth the scheduled maturities of lease obligations as of December 31, 2019:



(in millions)	Operating Leases			Finance Leases			Total
Year Ended December 31,
2020	$	62.1		$	12.3		$	74.4
2021	54.5			12.0			66.5
2022	46.6			9.8			56.4
2023	36.2			7.8			44.0
2024	29.0			6.2			35.2
Thereafter	74.5			36.3			110.8
Total lease payments	302.9			84.4			387.3
Less: Interest	(46.7		)	(20.3		)	(67.0		)
Present value of lease obligations	$	256.2		$	64.1		$	320.3

The following table provides lease term and discount rate information related to operating and finance leases as of December 31, 2019:



	December 31, 2019
Weighted average remaining lease term (years):
Operating leases	6.43
Finance leases	9.03

Weighted average discount rate:
Operating leases	5.42	%
Finance leases	6.27	%

The following table provides supplemental information related to the Company's Consolidated Statement of Cash Flows for the year ended December 31, 2019:



	Twelve months ended
(in millions)	December 31, 2019
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows paid for operating leases	$	62.7
Operating cash flows paid for finance leases	$	3.7
Financing cash flows paid for finance leases	$	7.7

Right-of-use assets obtained in exchange for new operating lease obligations	$	60.9
Right-of-use assets obtained in exchange for new finance lease obligations	$	4.1