LEASES

6 Months Ended

Jun. 28, 2019

The Company adopted ASU 2016-02, Leases, as of December 29, 2018, using the modified retrospective approach. Prior year financial statements were not recast under the new standard and, therefore, those amounts are not presented below.

Substantially all of Anixter's office and warehouse facilities are leased under operating leases. The Company also leases certain equipment and vehicles primarily as operating leases. Lease costs are included within "Operating expenses" in the Company's Condensed Consolidated Statements of Comprehensive Income. During the three and six months ended June 28, 2019, these costs were as follows:



	Three Months Ended		Six Months Ended
(In millions)	June 28, 2019		June 28, 2019
Lease cost
Operating lease cost	$	18.9	$	39.0
Variable lease cost	5.3		11.6
Short-term lease cost	0.4		0.7
Total lease cost	$	24.6	$	51.3

The weighted-average remaining lease term and weighted-average discount rate under operating leases at June 28, 2019 were:



	June 28, 2019
Lease term and discount rate
Weighted-average remaining lease term	5.9 years
Weighted-average discount rate ^(a)	6.3	%


(a)	Upon adoption of ASU 2016-02, the discount rate used for existing leases was established as of December 29, 2018.

Maturities of operating lease liabilities at June 28, 2019 were as follows:



(In millions)
2019 (excluding the six months ended June 28, 2019)	$	37.6
2020	63.6
2021	47.1
2022	41.5
2023	29.3
2024 and thereafter	72.3
Total lease payments	$	291.4
Less imputed interest	56.2
Present value of lease liabilities	$	235.2

Operating lease payments include $17.3 million related to options to extend lease terms that are reasonably certain of being exercised. As of June 28, 2019, the Company has additional leases, primarily for facilities, that have not yet commenced of $24.0 million. These operating leases will commence in fiscal year 2019 with lease terms of six to fifteen years. Anixter subleases certain real estate to third parties. During the three and six months ended June 28, 2019, the Company recognized income of $0.3 million and $0.5 million, respectively, which was included within "Operating expenses" in the Company's Condensed Consolidated Statements of Comprehensive Income. Aggregate future minimum rentals to be received under non-cancelable subleases at June 28, 2019 were $4.2 million.

During the six months ended June 28, 2019, leased assets obtained in exchange for operating lease obligations were $270.2 million. The operating cash outflow for amounts included in the measurement of operating lease obligations was $31.1 million.