Leases

9 Months Ended

Sep. 30, 2019

Leases — Included in our consolidated balance sheet for the period ended September 30, 2019, are certain noncancelable operating leases for office space, computer equipment, and vehicles, all with expected terms greater than one year, that are reported as a component of “other assets” and “accounts payable, accrued expenses, and other liabilities.” The leased assets represent our right to use an underlying asset for the lease term and the lease liabilities represent our obligation to make lease payments arising from the lease. We use an incremental borrowing rate to calculate the present value of the remaining lease payments. At September 30, 2019, we had operating lease assets of $190.5 million and operating lease liabilities of $204.1 million.

At September 30, 2019, the following table shows our operating lease liabilities, on an undiscounted basis for the periods indicated, along with key inputs used to discount our lease liabilities, in accordance with the new accounting standard adopted on January 1, 2019 (see Note 15 – New Accounting Standards for further discussion):



($ in millions)
2019 (excluding the nine months ended September 30, 2019)	$	21.1
2020	78.1
2021	62.4
2022	29.1
2023	14.3
Thereafter	9.0
Total	214.0
Interest	(9.9		)
Present value of lease liabilities	$	204.1
Weighted-average remaining term	3.2 years
Weighted-average discount rate	3.3		%

We had certain noncancelable operating lease commitments with lease terms greater than one year for property and computer equipment. The minimum commitments under these agreements at December 31, 2018, were as follows:



(millions)	Commitments
2019	$	64.1
2020	65.5
2021	52.8
2022	24.3
2023	8.5
Thereafter	3.8
Total	$	219.0

We review each contract at inception to determine if it contains a lease and whether the lease qualifies as an operating or financing lease. Operating leases are expensed on a straight-line basis over the term of the lease. For the nine months ended September 30, 2019, we incurred operating lease costs of $78.3 million. In determining the lease term, we consider the probability of exercising renewal options. We elected to account for leases with both lease and non-lease components as a single lease component and to apply a portfolio approach to account for our vehicle leases.