Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

NOTE 5: LEASES

The Company leases various assets including real estate, trucks, trailers, mobile equipment, processing equipment, and IT equipment.  The Company has noncancelable operating leases expiring at various times through 2032, and finance leases expiring at various times through 2025.  

The following table summarizes the location and amount of lease assets and lease liabilities reported in our Condensed Consolidated Balance Sheet as of March 31, 2020 and December 31, 2019:

		March 31,		December 31,
Leases	Balance Sheet Location	2020		2019
		(In millions)
Assets
Operating lease assets	Operating lease assets	$	121.5	$	128.2
Finance lease assets	Property, plant, and equipment, net(a)		54.1		54.2
Total lease assets		$	175.6	$	182.4
Liabilities
Current
Operating	Current portion of operating lease liabilities	$	21.2	$	20.9
Finance	Other accrued liabilities		11.9		12.4
Noncurrent
Operating	Noncurrent operating lease liabilities		106.2		112.8
Finance	Other noncurrent liabilities		17.6		18.7
Total lease liabilities		$	156.9	$	164.8

(a) Finance lease assets were recorded net of accumulated amortization of $19.3 million and $19.0 million as of March 31, 2020 and December 31, 2019, respectively.

The following table summarizes the location and amount of lease expense reported in our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2020 and 2019:

		Three Months Ended March 31,
Lease Expense	Location of Lease Expense Recognized in Income	2020		2019
		(In millions)
Operating lease expense	Warehousing, delivery, selling, general, and administrative	$	6.0	$	5.6
Finance lease expense
Amortization of lease assets	Warehousing, delivery, selling, general, and administrative		1.6		1.6
Interest on lease liabilities	Interest and other expense on debt		0.3		0.4
Variable lease expense	Warehousing, delivery, selling, general, and administrative		0.8		0.7
Short-term lease expense	Warehousing, delivery, selling, general, and administrative		0.8		0.5
Total lease expense		$	9.5	$	8.8

The following table presents maturity analysis of lease liabilities at March 31, 2020:

Maturity of Lease Liabilities	Operating Leases(a)			Finance Leases
	(In millions)
2020	$	18.9		$	10.2
2021		23.5			9.1
2022		19.8			5.7
2023		16.5			3.3
2024		15.4			2.8
After 2024		51.1			0.5
Total lease payments		145.2			31.6
Less: Interest(b)		(17.8	)		(2.1	)
Present value of lease liabilities(c)	$	127.4		$	29.5

(a) There were no operating leases with options to extend lease terms that are reasonably certain of being exercised and the operating lease payments exclude $0.3 million of legally binding minimum lease payments for leases signed but not yet commenced.

(b) Calculated using the discount rate for each lease.

(c) Includes the current portion of $21.2 million for operating leases and $11.9 million for finance leases.

The following table shows the weighted-average remaining lease term and discount rate for operating and finance leases, respectively, at March 31, 2020 and December 31, 2019:

	March 31,			December 31,
Lease Term and Discount Rate	2020			2019
Weighted-average remaining lease term (years)
Operating leases		7.7			7.9
Finance leases		2.9			2.8
Weighted-average discount rate
Operating leases		3.5	%		3.6	%
Finance leases		4.6	%		4.8	%

Information reported in our Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2020 and 2019 is summarized below:

	Three Months Ended March 31,
Other Information	2020		2019
	(In millions)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	6.2	$	5.1
Operating cash flows from finance leases		0.3		0.4
Financing cash flows from finance leases		3.4		3.0
Assets obtained in exchange for lease obligations:
Adoption of accounting principal ASC 842		—		82.3
Operating leases		0.4		2.6
Finance leases		0.1		0.1