Leasing

6 Months Ended

Jun. 30, 2020

18. Leasing

The Company leases certain warehouses and distribution centers, office space, transportation equipment, and other machinery and equipment.


(in millions)	Balance Sheet Classification	June 30, 2020		December 31, 2019
Assets
Operating lease assets	Other assets	$	154.7	$	157.3
Finance lease assets	Property, plant and equipment, net	76.5		69.5
Total lease assets		$	231.2	$	226.8
Liabilities
Current liabilities:
Current portion of operating lease liabilities	Other accrued expenses	$	46.1	$	47.4
Current portion of finance lease liabilities	Current portion of long-term debt	23.0		20.9
Noncurrent liabilities:
Operating lease liabilities	Other long-term liabilities	116.4		114.5
Finance lease liabilities	Long-term debt	55.5		50.3
Total lease liabilities		$	241.0	$	233.1

Lease cost


(in millions)	Three months ended June 30, 2020										Three months ended June 30, 2019
Statement of Operations Classification	Operating Leases		Finance Leases		Total		Operating Leases		Finance Leases		Total
Cost of goods sold (exclusive of depreciation)	$	4.4	$	—	$	4.4	$	4.0	$	—	$	4.0
Outbound freight and handling	1.4		—		1.4		1.9		—		1.9
Warehousing, selling and administrative	8.2		—		8.2		6.5		—		6.5
Depreciation	—		5.9		5.9		—		4.8		4.8
Interest expense	—		1.0		1.0		—		0.7		0.7
Total gross lease component cost	$	14.0	$	6.9	$	20.9	$	12.4	$	5.5	$	17.9
Variable lease costs					0.2						0.7
Short-term lease costs					6.4						9.0
Total gross lease costs					$	27.5					$	27.6
Sublease income					0.6						0.6
Total net lease cost					$	26.9					$	27.0


(in millions)	Six months ended June 30, 2020										Six months ended June 30, 2019
Statement of Operations Classification	Operating Leases		Finance Leases		Total		Operating Leases		Finance Leases		Total
Cost of goods sold (exclusive of depreciation)	$	8.7	$	—	$	8.7	$	7.7	$	—	$	7.7
Outbound freight and handling	2.7		—		2.7		3.7		—		3.7
Warehousing, selling and administrative	16.3		—		16.3		13.9		—		13.9
Depreciation	—		12.1		12.1		—		9.4		9.4
Interest expense	—		1.7		1.7		—		1.3		1.3
Total gross lease component cost	$	27.7	$	13.8	$	41.5	$	25.3	$	10.7	$	36.0
Variable lease costs					0.4						0.9
Short-term lease costs					13.9						11.6
Total gross lease costs					$	55.8					$	48.5
Sublease income					1.2						1.6
Total net lease cost					$	54.6					$	46.9

Maturity of lease liabilities


(in millions)	Operating Leases		Finance Leases		Total
2020	$	26.8	$	13.3	$	40.1
2021	43.6		22.8		66.4
2022	34.4		19.3		53.7
2023	23.9		10.0		33.9
2024	15.6		7.0		22.6
2025 and After	38.5		11.5		50.0
Total lease payments	$	182.8	$	83.9	$	266.7
Less: interest	20.3		7.6
Present value of lease liabilities, excluding guaranteed residual values	$	162.5	$	76.3
Plus: present value of guaranteed residual values	—		2.2
Present value of lease liabilities	$	162.5	$	78.5

Lease term and discount rate


	June 30, 2020		December 31, 2019
Weighted-average remaining lease term (years)
Operating leases	5.4		5.0
Finance leases	4.4		4.0
Weighted-average discount rate
Operating leases	4.81	%	4.95	%
Finance leases	4.07	%	4.33	%

Other information


	Six months ended June 30,
(in millions)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	27.3	$	28.9
Operating cash flows from finance leases	1.6		1.3
Financing cash flows from finance leases	12.1		9.6