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Leases
 6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases Leases
The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets, current portion of operating lease liabilities, and long-term portion of operating lease liabilities on our consolidated balance sheets. Finance lease ROU assets are included in property, equipment and software, net, and the current and non-current portion of financing lease liabilities are included in other accrued expenses and other non-current liabilities, respectively, on our consolidated balance sheets.

ROU assets represent the Company's right to control the use of an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating and financing lease ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, we use our incremental borrowing rate, determined based on the information available at lease commencement date, in calculating the present value of lease payments. The ROU asset also includes any lease prepayments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

The Company elected to not separate lease and non-lease components for building and equipment leases. The Company will account for the lease and non-lease components, such as fixed service charges, as a single lease component. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

The Company has operating and finance leases for corporate offices, operational facilities, shared service centers, and certain equipment. Leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 10 years. In circumstances where there are significant foreign tax incentives, the Company has determined it to be reasonably certain to exercise the renewal options.

The Company elected to not separate lease and non-lease components to its equipment leased to customers as part of certain service arrangements. The lease components are combined with the non-lease components and accounted for under ASC 606.

We sublease certain office spaces to third parties as a result of combining operations from the Acquisition.
 
The components of lease costs are as follows (in millions):

 
 
Three Months Ended June 30, 2019
Six Months Ended June 30, 2019
Operating lease cost
 
$
4.8

$
9.4

Finance lease cost:
 
 
 
Amortization of right-of-use assets
 
0.2

0.4

Interest on lease liabilities
 
—

0.1

Sublease income
 
(0.5
)
(1.1
)
Total lease cost
 
$
4.5

$
8.8


Supplemental cash flow information related to leases are as follows (in millions):
 
 
Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows for operating leases
 
$
9.1

Operating cash flows for finance leases
 
0.1

Financing cash flows for finance leases
 
0.4

ROU assets obtained in exchange for lease obligations:
 
 
Operating leases
 
11.6

Finance leases
 
0.5



We present all non-cash transactions related to adjustments to the lease liability or right-of-use asset as non-cash transactions. This includes all non-cash charges related to any modification or reassessment events triggering remeasurement.

Supplemental balance sheet information related to leases are as follows (in millions):

 
 
June 30, 2019
Operating leases
 
 
Operating lease right-of-use assets
 
$
78.4

 
 
 
Current portion of operating lease liabilities
 
$
11.3

Non-current portion of operating lease liabilities
 
85.4

Total operating lease liabilities
 
$
96.7

 
 
 
Finance leases
 
 
Property, equipment and software, gross
 
$
2.8

Accumulated depreciation
 
(0.6
)
Property, equipment and software, net
 
$
2.2

 
 
 
Other accrued expenses
 
$
1.1

Other non-current liabilities
 
0.5

Total finance lease liabilities
 
$
1.6

 
 
 
Weighted average remaining lease term:
 
 
Operating leases
 
8 years

Finance leases
 
2 years

 
 
 
Weighted average borrowing rate:
 
 
Operating leases
 
8.73
%
Finance leases
 
6.27
%


Maturities of lease liabilities as of June 30, 2019 are as follows (in millions):

 
 
Operating Leases
 
Finance Leases
Remainder of 2019
 
$
9.6

 
$
0.4

2020
 
18.3

 
0.8

2021
 
17.0

 
0.4

2022
 
15.3

 
0.1

2023
 
14.8

 
—

2024
 
14.4

 
—

Thereafter
 
48.8

 
—

Total
 
138.2

 
1.7

Less:
 
 
 
 
Imputed Interest
 
41.5

 
0.1

Present value of lease liabilities
 
$
96.7

 
$
1.6
Leases Leases
The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets, current portion of operating lease liabilities, and long-term portion of operating lease liabilities on our consolidated balance sheets. Finance lease ROU assets are included in property, equipment and software, net, and the current and non-current portion of financing lease liabilities are included in other accrued expenses and other non-current liabilities, respectively, on our consolidated balance sheets.

ROU assets represent the Company's right to control the use of an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating and financing lease ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, we use our incremental borrowing rate, determined based on the information available at lease commencement date, in calculating the present value of lease payments. The ROU asset also includes any lease prepayments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

The Company elected to not separate lease and non-lease components for building and equipment leases. The Company will account for the lease and non-lease components, such as fixed service charges, as a single lease component. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

The Company has operating and finance leases for corporate offices, operational facilities, shared service centers, and certain equipment. Leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 10 years. In circumstances where there are significant foreign tax incentives, the Company has determined it to be reasonably certain to exercise the renewal options.

The Company elected to not separate lease and non-lease components to its equipment leased to customers as part of certain service arrangements. The lease components are combined with the non-lease components and accounted for under ASC 606.

We sublease certain office spaces to third parties as a result of combining operations from the Acquisition.
 
The components of lease costs are as follows (in millions):

 
 
Three Months Ended June 30, 2019
Six Months Ended June 30, 2019
Operating lease cost
 
$
4.8

$
9.4

Finance lease cost:
 
 
 
Amortization of right-of-use assets
 
0.2

0.4

Interest on lease liabilities
 
—

0.1

Sublease income
 
(0.5
)
(1.1
)
Total lease cost
 
$
4.5

$
8.8


Supplemental cash flow information related to leases are as follows (in millions):
 
 
Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows for operating leases
 
$
9.1

Operating cash flows for finance leases
 
0.1

Financing cash flows for finance leases
 
0.4

ROU assets obtained in exchange for lease obligations:
 
 
Operating leases
 
11.6

Finance leases
 
0.5



We present all non-cash transactions related to adjustments to the lease liability or right-of-use asset as non-cash transactions. This includes all non-cash charges related to any modification or reassessment events triggering remeasurement.

Supplemental balance sheet information related to leases are as follows (in millions):

 
 
June 30, 2019
Operating leases
 
 
Operating lease right-of-use assets
 
$
78.4

 
 
 
Current portion of operating lease liabilities
 
$
11.3

Non-current portion of operating lease liabilities
 
85.4

Total operating lease liabilities
 
$
96.7

 
 
 
Finance leases
 
 
Property, equipment and software, gross
 
$
2.8

Accumulated depreciation
 
(0.6
)
Property, equipment and software, net
 
$
2.2

 
 
 
Other accrued expenses
 
$
1.1

Other non-current liabilities
 
0.5

Total finance lease liabilities
 
$
1.6

 
 
 
Weighted average remaining lease term:
 
 
Operating leases
 
8 years

Finance leases
 
2 years

 
 
 
Weighted average borrowing rate:
 
 
Operating leases
 
8.73
%
Finance leases
 
6.27
%


Maturities of lease liabilities as of June 30, 2019 are as follows (in millions):

 
 
Operating Leases
 
Finance Leases
Remainder of 2019
 
$
9.6

 
$
0.4

2020
 
18.3

 
0.8

2021
 
17.0

 
0.4

2022
 
15.3

 
0.1

2023
 
14.8

 
—

2024
 
14.4

 
—

Thereafter
 
48.8

 
—

Total
 
138.2

 
1.7

Less:
 
 
 
 
Imputed Interest
 
41.5

 
0.1

Present value of lease liabilities
 
$
96.7

 
$
1.6