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Leases (Notes)

12 Months Ended

Dec. 31, 2019

As stated in Note 2: Summary of Significant Accounting Policies, the Company adopted Topic 842 effective January 1, 2019 using the optional transition method and did not revise prior comparative periods. Consequently, the Company’s reporting for the comparative periods will continue to be in accordance with previously existing GAAP (Topic 840, Leases).

For the year ended December 31, 2019 Reported in Accordance with Topic 842, the components of lease cost were as follows (in millions):



	Year Ended December 31, 2019
Operating lease cost	$	152.7

Finance lease cost:
Amortization of assets	11.7
Interest on lease liabilities	0.6
Total finance lease cost	$	12.3

Variable lease cost	$	30.4

Sublease income	$	12.2

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



	As of December 31, 2019
Operating Leases
Non-current operating lease assets	$	490.7

Other current liabilities	118.6
Non-current operating lease liabilities	457.1
Total operating lease liabilities	$	575.7

Finance Leases
Property and equipment, gross	$	55.3
Accumulated depreciation	(36.7		)
Property and equipment, net	$	18.6

Short-term borrowings and current portion of long-term debt	$	10.7
Long-term debt	9.6
Total finance lease liabilities	$	20.3

Weighted Average Remaining Lease Term (in years)
Operating leases	5.9 years
Finance leases	3.7 years

Weighted Average Discount Rate
Operating leases	5.9		%
Finance leases	4.6		%

Supplemental cash flow information related to leases was as follows (in millions):



	Year Ended December 31, 2019
Cash paid for amounts used in the measurement of lease liabilities:
Operating cash flows used in operating leases	$	158.8
Operating cash flows used in finance leases	0.6
Assets obtained in exchange for lease obligations:
Operating leases	49.9
Finance leases	12.3

Maturities of lease liabilities are as follows (in millions):



	Operating Leases		Finance Leases
2020	$	147.3	$	10.9
2021	122.1		6.5
2022	104.9		2.6
2023	88.4		0.7
2024	78.8		—
Thereafter	143.6		—
Total lease payments	685.1		20.7
Less imputed interest	109.4		0.4
Total	$	575.7	$	20.3

As of December 31, 2019, we have operating leases that have not yet commenced for approximately $20.0 million. These operating leases will commence in 2020 with lease terms ranging from three years to twelve years.

For the year ended December 31, 2018 Reported in Accordance with Topic 840

The Company entered into operating leases for real estate and equipment such as, motor vehicles and IT equipment. Additionally, the Company entered into capital leases for the use of furniture, motor vehicles and IT equipment. Generally, both operating and capital leases have limited restrictions or covenants on the Company for incurring additional financial obligations. Total net rent expense of $136.0 million, net of sublease income of $13.2 million, for the year ended December 31, 2018.

Additionally, the Company entered into capital leases as a means of funding the acquisition of furniture and equipment and acquiring access to real estate and vehicles. Rental payments are generally fixed, with no special terms or conditions.

As of December 31, 2018, the obligations for operating and capital leases are as summarized below (in millions):



	Operating Leases		Capital Leases
2019	$	152.9	$	9.3
2020	139.3		6.4
2021	112.8		2.3
2022	96.3		0.4
2023	80.4		—
Thereafter	210.2		—
Total lease payments	$	791.9	$	18.4

Future minimum lease payments are net of total sub-lease rental income of $58.9 million. Capital lease obligations are shown net of $1.1 million of interest charges.

Leases