Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

Leases

The Company has operating leases for corporate offices, research and development facilities and manufacturing facilities. We determine if an arrangement is a lease at inception. Operating leases are included in right-of-use (ROU) assets and liabilities.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's 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. As most of the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company uses an implicit rate when readily determinable. At the beginning of a lease, the operating lease ROU asset also includes any concentrated lease payments expected to be paid and excludes lease incentives. The Company's lease ROU asset may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. The Company's leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year.

The components of lease expense were as follows: 

	Three months ended March 31,
	2020		2019
Operating lease cost:
Amortization of right-of-use assets	$	1.1	$	0.6
Interest on lease liabilities	0.3		0.1
Total operating lease cost	$	1.4	$	0.7

Supplemental balance sheet information related to leases was as follows:

(In millions, except lease term and discount rate)	Balance Sheet location	March 31, 2020			December 31, 2019
Operating lease right-of-use assets	Other assets	$	25.6		$	24.7
Operating lease liabilities, current portion	Other current liabilities	4.2			3.6
Operating lease liabilities	Other liabilities	22.7			22.1
Total operating lease liabilities		$	26.9		$	25.7
Operating leases:
Weighted average remaining lease term (years)		7.7			8.0
Weighted average discount rate		4.2		%	4.2		%

Leases

Leases

The Company has operating leases for corporate offices, research and development facilities and manufacturing facilities. We determine if an arrangement is a lease at inception. Operating leases are included in right-of-use (ROU) assets and liabilities.

ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's 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. As most of the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company uses an implicit rate when readily determinable. At the beginning of a lease, the operating lease ROU asset also includes any concentrated lease payments expected to be paid and excludes lease incentives. The Company's lease ROU asset may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. The Company's leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year.

The components of lease expense were as follows: 

	Three months ended March 31,
	2020		2019
Operating lease cost:
Amortization of right-of-use assets	$	1.1	$	0.6
Interest on lease liabilities	0.3		0.1
Total operating lease cost	$	1.4	$	0.7

Supplemental balance sheet information related to leases was as follows:

(In millions, except lease term and discount rate)	Balance Sheet location	March 31, 2020			December 31, 2019
Operating lease right-of-use assets	Other assets	$	25.6		$	24.7
Operating lease liabilities, current portion	Other current liabilities	4.2			3.6
Operating lease liabilities	Other liabilities	22.7			22.1
Total operating lease liabilities		$	26.9		$	25.7
Operating leases:
Weighted average remaining lease term (years)		7.7			8.0
Weighted average discount rate		4.2		%	4.2		%