Leases

6 Months Ended

Jun. 30, 2020

4. Leases

Leases (in millions)	Classification	June 30, 2020		December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	319.2	$	386.0
Finance lease assets	Net property and equipment		2.4		2.6
Total leased assets		$	321.6	$	388.6
Liabilities
Current
Operating	Current operating lease liabilities	$	114.0	$	120.8
Finance	Other current and accrued liabilities		0.9		0.2
Noncurrent
Operating	Operating lease liabilities		214.0		246.3
Finance	Claims and other liabilities		3.2		3.3
Total lease liabilities		$	332.1	$	370.6

		Three Months				Six Months
Lease Cost (in millions)	Classification	2020		2019		2020		2019
Operating lease cost^(a)	Purchased transportation; Fuel, operating expenses and supplies	$	40.4	$	41.1	$	83.5	$	82.3
Short-term cost	Purchased transportation; Fuel, operating expenses and supplies		2.1	3.4			4.1	6.9
Variable lease cost	Purchased transportation; Fuel, operating expenses and supplies	1.8		1.8		4.2		3.3
Finance lease cost
Amortization of leased assets	Depreciation and amortization		0.0	0.1		0.1		0.3
Interest on lease liabilities	Interest expense	0.1		0.1		0.2		0.2
Total lease cost		$	44.4	$	46.5	$	92.1	$	93.0

(a)	Operating lease cost represents non-cash amortization of ROU assets and accretion of the discounted lease liabilities and is segregated on the statement of consolidated cash flows.

Remaining Maturities of Lease Liabilities	Operating Leases		Finance Leases		Total
2020	$	76.6	$	0.7	$	77.3
2021		138.9		1.0		139.9
2022		90.2		0.6		90.8
2023		49.5		0.6		50.1
2024		18.2		0.7		18.9
After 2024		32.6		3.4		36.0
Total lease payments	$	406.0	$	7.0	$	413.0
Less: Imputed Interest		78.0		2.9		80.9
Present value of lease liabilities	$	328.0	$	4.1	$	332.1

Lease Term and Discount Rate

(years and percent)

Weighted-Average Remaining Lease Term

Weighted-Average Discount Rate

Operating leases

3.5

12.7%^(a)

Finance leases

8.0

10.3%

(a)

In an effort to preserve liquidity, certain equipment leases were modified during the second quarter to reduce short-term cash payments, resulting in an increase in payments in future periods. ROU assets and related liabilities were calculated using increased incremental borrowing rates as compared to prior periods due to a series of credit ratings downgrades. The increased incremental borrowing rates caused the ROU assets and lease liabilities to decrease, but this decrease was offset by an increase in future payment levels as a result of deferral agreements.

	Three Months				Six Months
Other Information (in millions)	2020		2019		2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases^(a)	$	17.5	$	38.9	$	55.5	$	75.2
Operating cash flows from finance leases	0.1		0.1		0.2		0.2
Financing cash flows from finance leases	0.1		0.1		0.2		0.2
Leased assets obtained in exchange for new operating lease liabilities	$	6.3	$	34.7	$	10.0	$	53.8

(a)	Payments arising from operating leases are reported in operating activities on the statements of consolidated cash flows.