Lease Obligations

12 Months Ended

Dec. 31, 2019

Note 8 – Lease Obligations

See Note 1 - Business, Basis of Presentation and Significant Accounting Policies for information pertaining to the Company’s adoption of ASU 2016-02, Leases (Topic 842).

Finance Leases

The gross amount of assets held under finance leases as of December 31, 2019 and 2018 totaled $463.5 million and $337.6 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $375.9 million and $246.8 million as of December 31, 2019 and 2018, respectively. Depreciation expense associated with assets held under finance leases totaled $48.6 million for the year ended December 31, 2019.

Operating Leases

Operating lease additions for the year ended December 31, 2019, excluding the effect of adoption of ASU 2016-02 of approximately $230 million, totaled $103 million. For the year ended December 31, 2019, rent expense for operating leases that have terms in excess of one year totaled approximately $114.5 million, of which $10.4 million represented variable lease costs. The Company also incurred rent expense for operating leases with terms of one year or less totaling approximately $448.2 million for the year ended December 31, 2019. For the years ended December 31, 2018 and 2017, rent and related expense for operating leases that have non-cancelable terms in excess of one year totaled approximately $115.0 million and $104.2 million, respectively, and rent and related expense for operating leases having original terms of one year or less totaled approximately $472.1 million and $461.0 million, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, and is included within operating activities in the consolidated statements of cash flows.

Additional Lease Information

Future minimum lease commitments as of December 31, 2019 were as follows (in millions):



	Finance Leases			Operating Leases
2020	$	122.4		$	88.8
2021	107.9			65.9
2022	67.4			41.6
2023	21.4			20.2
2024	1.1			12.8
Thereafter	—			28.7
Total minimum lease payments	$	320.2		$	258.0
Less amounts representing interest	(18.9		)	(21.8		)
Total lease obligations, net of interest	$	301.3		$	236.2
Less current portion	111.6			81.6
Long-term portion of lease obligations, net of interest	$	189.7		$	154.6

As of December 31, 2019, finance leases had a weighted average remaining lease term of 2.8 years and a weighted average discount rate of 4.1%. Non-cancelable operating leases had a weighted average remaining lease term of 4.2 years and a weighted average discount rate of 4.2% as of December 31, 2019. As of December 31, 2019, future lease obligations for leases that had not yet commenced totaled approximately $1.4 million. These leases commence in 2020 with lease terms ranging from one to four years.