Leases

6 Months Ended

Jun. 30, 2020

We have operating leases for office space, production facilities, distribution centers, warehouses, sales offices, fleet vehicles and equipment. In accordance with our accounting policy, leases with an initial term of 12 months or less are not recognized on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We elected the practical expedient for all leases to include both lease and non-lease components within our lease assets and lease liabilities.

Our lease agreements do not contain any material residual value guarantees, any material bargain purchase options or material restrictive covenants. We have no material sublease arrangements with third parties or lease transactions with related parties.

During the three months ended June 30, 2020 and June 30, 2019, rent expense was $5.0 million and $4.9 million, respectively. During the six months ended June 30, 2020 and June 30, 2019, rent expense was $10.1 million and $9.1 million, respectively. Rent expense figures are primarily related to operating lease costs. Costs associated with short-term leases, variable rent and subleases were immaterial.

Our leases have remaining lease terms of one to ten years, some of which include options to extend the leases for up to five years. Renewal options that are reasonably certain to be exercised are included in the lease term. The incremental borrowing rate is used in determining the present value of lease payments, unless an implicit rate is specified. Incremental borrowing rates on a collateralized basis are determined based on the economic environment in which leases are denominated and the lease term. The weighted average remaining lease term and weighted average discount rate were as follows:


	June 30, 2020		June 30, 2019
Weighted average remaining lease term
Operating leases	5 years		5 years
Weighted average discount rate
Operating leases	3.8	%	4.5	%

Future lease payments under non-cancelable operating leases as of June 30, 2020 were as follows:


In millions
Remainder of 2020	$	8.8
2021	14.3
2022	10.1
2023	6.5
2024	4.8
2025	4.2
Thereafter	9.8
Total lease payments	$	58.5
Less imputed interest	(7.0)
Total reported lease liability	$	51.5

As of June 30, 2020, we have no material additional operating leases that have not yet commenced.

Supplemental cash flow information related to operating leases were as follows:


	Six months ended
In millions	June 30, 2020		June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities	$	9.2	$	8.5
Lease right-of-use assets obtained in exchange for new lease liabilities	6.9		3.6

Supplemental balance sheet information related to operating leases was as follows:


In millions	Classification	June 30, 2020		December 31, 2019
Assets
Lease right-of-use assets	Other non-current assets	$	47.3	$	44.2
Liabilities
Current lease liabilities	Other current liabilities	$	14.4	$	14.7
Non-current lease liabilities	Other non-current liabilities	37.1		33.7
Total lease liabilities		$	51.5	$	48.4