Leases

9 Months Ended

Sep. 30, 2021

7. 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. Upon adoption of ASC 842, the Company elected not to recognize leases with terms of one-year or less on the balance sheet.

Supplemental balance sheet information related to the Company's leases is as follows:

		Successor		Predecessor
(dollars in millions)	Balance Sheet Location	September 30, 2021		December 31, 2020
Operating lease assets, net of amortization	Operating lease right-of-use assets	$	41.4	$	37.4
Finance lease assets, net of amortization	Property, plant and equipment, net		15.4		28.0
Operating lease liabilities:
Current operating lease liabilities	Other current liabilities		8.8		9.6
Noncurrent operating lease liabilities	Operating lease liabilities		38.0		33.6
Total operating lease liabilities			46.8		43.2
Finance lease liabilities:
Current finance lease liabilities	Current portion of long-term debt		10.1		13.9
Noncurrent finance lease liabilities	Long-term debt, less current portion		47.1		52.1
Total finance lease liabilities		$	57.2	$	66.0

Supplemental cash flow information related to leases is as follows:

	Successor		Predecessor		Predecessor
(dollars in millions)	September 8, 2021 to September 30, 2021		January 1, 2021 to September 7, 2021		Nine Months Ended September 30, 2020
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	0.3	$	2.9	$	3.3
Operating cash flows from operating leases	$	0.8	$	7.2	$	9.5
Financing cash flows from finance leases	$	1.2	$	9.9	$	13.9
Right-of-use assets obtained in exchange for lease obligations:
New operating leases	$	—	$	11.5	$	6.8
New finance leases	$	—	$	3.8	$	4.0

Sale-Leaseback Disclosures

On August 31, 2021, the Company simultaneously exercised its bargain purchase option on real property located in Cincinnati, Ohio, previously classified as a finance lease, and sold it to a third party for $9.1 million. Net proceeds from the transactions were approximately $6.6 million after transactional costs. Concurrently with the sale, the Company entered into an operating lease arrangement with the third party purchaser of the property for a portion of the building to maintain use of the location as an office space. The transaction qualified for sale-leaseback accounting in accordance with ASC 842, and the Company recognized a gain on the sale of $2.8 million in August, 2021. The Company recorded an operating lease right-of-use asset and liability of $7.7 million related to the leaseback agreement on September 1, 2021.