Leases

Lessee Disclosures

The Company primarily leases real estate for offices, retail stores and central offices, as well as equipment, cell towers and fleet vehicles. The Company leases its real estate for terms between 1 and 55 years, its equipment for terms between 1 and 6 years, its cell towers for terms between 4 and 21 years and its vehicles for terms of 5 years. Our leases have various expiration dates through 2066, some of which include options to extend the leases for up to 15 years, and some of which include options to terminate the leases within one year.

Upon adoption, the Company elected not to recognize leases with terms of one-year or less on the balance sheet. The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease.

Supplemental unaudited balance sheet information relate to the Company's leases were as follows:



(dollars in millions)	Balance Sheet Location	March 31, 2019
Operating lease assets, net of amortization	Operating lease right-of-use assets	$	37.2
Finance lease assets, net of amortization	Property, plant and equipment, net	28.1
Operating lease liabilities:
Current operating lease liabilities	Other current liabilities	9.8
Noncurrent operating lease liabilities	Operating lease liabilities	34.5
Total operating lease liabilities		44.3

Finance lease liabilities:
Current finance lease liabilities	Current portion of long-term debt	15.3
Noncurrent finance lease liabilities	Long-term debt, less current portion	65.4
Total finance lease liabilities		$	80.7

The components of lease expense was as follows:



	Three Months Ended
(dollars in millions)	March 31, 2019
Operating lease cost	$	3.1
Short-term lease cost	0.1
Variable lease cost	0.5
Finance lease cost:
Depreciation on leased assets	1.9
Interest on lease liabilities	1.2
Total lease cost	$	6.8

Under ASC 840 the Company recorded lease expense of $3.3 million for the three months ended March 31, 2018.

Other information related to leases were as follows:



	Three Months Ended
(dollars in millions)	March 31, 2019
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	1.2
Operating cash flows from operating leases	3.2
Financing cash flows from finance leases	3.0
Right-of-use assets obtained in exchange for lease obligations:
New operating leases	1.3
New finance leases	9.8
Weighted Average Remaining Lease Term
Operating leases	8.21 years
Finance leases	7.59 years
Weighted Average Discount Rate
Operating leases	7.08		%
Finance leases	6.86		%

Future minimum lease payments under non-cancellable leases as of March 31, 2019 are as follows:



(dollars in millions)	Operating Leases			Finance Leases
Nine months ended December 31, 2019	$	12.7		$	19.5
2020	10.3			17.3
2021	6.3			13.2
2022	4.7			8.1
2023	4.2			7.4
Thereafter	23.0			40.9
Total future minimum lease payments	61.2			106.4
Less imputed interest	(15.6		)	(25.7		)
Total	$	45.6		$	80.7

As of March 31, 2019, we have additional operating leases for buildings that have not yet commenced for $1.3 million. These operating leases will commence in the second quarter of 2019 with lease terms of up to 5 years.

Lessor Disclosures

The Company has operating leases related to its dark fiber arrangements for terms between 3 and 29 years. Our leases have various expiration dates through 2046, some of which include options to extend the lease. During the three months ended March 31, 2019, the Company recorded $0.8 million in lease income related to operating lease payments.

The Company owns the underlying assets associated with its operating leases and records them in "Property, plant and equipment, net" on the Condensed Consolidated Balance Sheets.

Future minimum lease payments to be received under non-cancellable leases as of March 31, 2019 are as follows:



(dollars in millions)	Operating Leases
Nine months ended December 31, 2019	$	2.4
2020	3.1
2021	2.4
2022	1.7
2023	1.7
Thereafter	18.6
Total future minimum lease payments	29.9
Less imputed interest	(11.0		)
Total	$	18.9