LEASES (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of lease expense and supplemental cash flow information for leases

The components of lease expense and supplemental cash flow information related to our leases for the three and six months ended June 30 are as follows:



	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2019		2018		2019			2018
Finance/capital lease expense ⁽¹⁾	$	2.1	$	1.9	$	4.1		$	3.8
Operating lease expense ⁽²⁾	1.4		1.4		2.8			2.8
Short-term lease expense ⁽²⁾	0.1		0.6		0.1			0.7
Total lease expense	$	3.6	$	3.9	$	7.0		$	7.3

Other information

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for finance/capital lease ⁽³⁾					$	1.8		$	3.8
Operating cash flows for operating leases					$	3.2		$	3.3
Financing cash flows for finance lease ⁽³⁾					$	2.3		$	—

Non-cash activity – right of use assets obtained in exchange for operating lease liabilities					$	49.0

Remaining lease term – finance lease					2.9 years
Weighted-average remaining lease term – operating leases					13.1 years

Discount rate – finance lease ⁽⁴⁾					15.8		%
Weighted average discount rate – operating leases ⁽⁴⁾					4.4		%

⁽¹⁾

For the three and six months ended June 30, 2019, finance lease expense included amortization of right of use assets in the amount of $1.2 million and $2.3 million (included in depreciation and amortization expense), respectively and interest on lease liabilities of $0.9 million and $1.8 million (included in interest expense), respectively. For each of the three and six months ended June 30, 2018, total finance lease expense related to the long-term power purchase agreement was included in cost of sales.


⁽²⁾	Operating and short-term lease expense were included as a component of operation and maintenance for the three and six months ended June 30, 2019 and 2018.


⁽³⁾	Prior to our adoption of Topic 842 on January 1, 2019, all cash flows related to the finance lease were recorded as a component of operating cash flows.

⁽⁴⁾

Because our operating leases do not provide an implicit rate of return, we used the fully collateralized incremental borrowing rates based upon information available for similarly rated companies in determining the present value of lease payments for our operating leases. For our financing lease, the rate implicit in the lease was readily determinable.

Schedule of finance lease right of use asset

The following table summarizes our finance lease right of use asset, which was included in property, plant and equipment on our balance sheets:



(in millions)	June 30, 2019			December 31, 2018
Long-term power purchase commitment	$	140.3		$	140.3
Accumulated amortization	(123.7		)	(120.9		)
Total finance lease right of use asset/capital lease asset	$	16.6		$	19.4

Schedule of future minimum lease payments for operating and finance leases

Future minimum lease payments under our operating leases and our finance lease, and the present value of our net minimum lease payments as of June 30, 2019, were as follows:



(in millions)	Total Operating Leases			Power Purchase Commitment
Six months ending December 31, 2019	$	2.7		$	4.1
2020	6.9			8.8
2021	4.9			9.4
2022	4.9			4.2
2023	5.0			—
2024	4.8			—
Thereafter	30.5			—
Total minimum lease payments	59.7			26.5
Less: Interest	(15.3		)	(5.5		)
Present value of minimum lease payments	44.4			21.0
Less: Short-term lease liabilities	(4.3		)	(5.6		)
Long-term lease liabilities	$	40.1		$	15.4