Leases

Effective January 1, 2019, IPG adopted Accounting Standards Codification Topic 842, Leases, ("ASC 842") using the modified retrospective transition method. As such, we have recognized a right-of-use asset and a corresponding lease liability on our Consolidated Balance Sheet for virtually all of our leases with a term of more than twelve months. Prior-year financial statements were not recast under the new standard and, therefore, those amounts are not presented below. As an accounting policy, we have elected not to apply the recognition requirements to short-term leases, not to separate non-lease components from lease components, and have elected the package of transition provisions available for existing contracts, which allowed us to carryforward our historical assessments of (i) whether contracts are or contain leases, (ii) lease classification and (iii) initial direct costs.

We do not have a material amount of finance leases and the majority of our operating leases, for which we serve as the lessee, consist primarily of real-estate property for our offices around the world. Both the asset and liability are measured at the present value of the future minimum lease payments, with the asset being subject to adjustments such as initial direct costs, prepaid lease payments, and lease incentives. Many of our leases provide for renewal and/or termination options, as well as escalation clauses, which are also factored into our lease payments when appropriate. Our leases have remaining lease terms of 1 year to 21 years. The discount rate used to measure the lease asset and liability is determined at the beginning of the lease term using the rate implicit in the lease, if readily determinable, or using the Company's collatoralized credit adjusted borrowing rate.

The following table presents information on our operating leases for the three months ended March 31, 2019.



	Three months ended March 31, 2019
Operating lease cost	$	78.4
Short-term lease cost	5.1
Sublease income	(2.1		)
Total lease cost	$	81.4

Cash paid for amounts included in the measurement of lease liabilities	$	79.4
Right-of-use assets obtained in exchange for lease obligations	$	1.1
Weighted-average remaining lease term	Seven years
Weighted-average discount rate	4.47		%

Our future minimum payments of our operating leases as of March 31, 2019 are listed in the table below.



Period	Net Rent
2019	$	327.1
2020	303.0
2021	261.1
2022	212.4
2023	157.8
Thereafter	557.2
Total future minimum lease payments	1,818.6
Less: imputed interest	(332.0		)
Present value of future minimum lease payments	1,486.6
Less: current portion of operating leases	263.0
Non-current operating leases	$	1,223.6

Our future minimum payments of our operating leases as of December 31, 2018 are listed in the table below.



Period	Rent Obligations		Sublease Rental Income			Net Rent
2019	$	352.0	$	(7.7	)	$	344.3
2020	324.3		(5.2		)	319.1
2021	282.3		(2.2		)	280.1
2022	242.5		(1.3		)	241.2
2023	184.0		(0.6		)	183.4
Thereafter	714.6		(0.5		)	714.1
Total future minimum lease payments	$	2,099.7	$	(17.5	)	$	2,082.2

As of March 31, 2019, we have additional operating leases that have not yet commenced with future minimum lease payments of approximately $180.0 that will commence in 2019 with lease terms of 5 to 15 years.