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Leases
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases

(14) Leases

We have operating leases for real estate, vehicles, and equipment. Our leases have remaining lease terms of 1 month to 12 years. Our lease agreements may include renewal or termination options for varying periods that are generally at our discretion. In our lease term, we only include those periods related to renewal options we are reasonably certain to exercise. However, we generally do not include these renewal options as we are not reasonably certain to renew at the lease commencement date. This determination is based on our consideration of certain economic, strategic and other factors that we evaluate at lease commencement date and reevaluate throughout the lease term. Some leases also include options to terminate the leases and we only include those periods beyond the termination date if we are reasonably certain not to exercise the termination option.

Some leasing arrangements require variable payments that are dependent on usage or may vary for other reasons, such as payments for insurance and tax payments. The variable portion of lease payments is not included in our ROU assets or lease liabilities. Rather, variable payments, other than those dependent upon an index or rate, are expensed when the obligation for those payments is incurred and are included in lease expenses recorded in selling and administrative expenses on the Consolidated Statements of Operations.

We have lease agreements with both lease and non-lease components that are treated as a single lease component for all underlying asset classes. Accordingly, all expenses associated with a lease contract are accounted for as lease expenses.

We have elected to apply the short-term lease exception for all underlying asset classes. That is, leases with a term of 12 months or less are not recognized on the balance sheet, but rather expensed on a straight-line basis over the lease term. We do not include significant restrictions or covenants in our lease agreements, and residual value guarantees are generally not included within our operating leases. As of June 30, 2019, we did not have any material additional operating leases that have not yet commenced.

The components of lease expense were as follows:

 

 

 

3 Months Ended

 

 

6 Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2019

 

Operating lease expense

 

$

35.0

 

 

$

69.7

 

Short-term lease expense

 

 

6.0

 

 

 

12.1

 

Other lease expense(1)

 

$

4.8

 

 

$

9.9

 

Total lease expense

 

$

45.8

 

 

$

91.7

 

(1)

Other lease expense includes immaterial variable lease expense and sublease income.

Other information related to leases was as follows:

 

 

 

 

 

6 Months Ended

 

 

 

 

 

June 30,

 

Supplemental Cash Flows Information

 

 

 

2019

 

Cash paid for amounts included in the measurement of operating lease liabilities

 

 

 

$

64.8

 

Operating ROU assets obtained in exchange for lease obligations

 

 

 

$

69.7

 

 

 

 

June 30,

 

Supplemental balance sheet information

 

2019

 

Operating Leases

 

 

 

 

Operating lease ROU assets

 

$

458.5

 

 

 

 

 

 

Operating lease liabilities - current(1)

 

$

126.6

 

Operating lease liabilities - long-term

 

 

334.3

 

Total operating lease liabilities

 

$

460.9

 

 

(1)

Operating lease liabilities - current are included in accrued expenses on our Consolidated Balance Sheets.

 

Weighted Average Remaining Lease Term

 

 

 

 

Operating leases

 

5.6

 

Weighted Average Discount Rate

 

 

 

 

Operating leases

 

 

2.8

%

 

Maturities of operating lease liabilities as of June 30, 2019 were as follows:

 

(In millions)

 

 

 

 

Period Ending June 30, 2019

 

Operating Leases

 

2019 (excluding the six months ended June 30, 2019)

 

$

64.5

 

2020

 

 

120.9

 

2021

 

 

91.8

 

2022

 

 

68.1

 

2023

 

 

46.2

 

2024

 

 

33.7

 

Thereafter

 

 

80.5

 

Total future undiscounted lease payments

 

$

505.7

 

Less imputed interest

 

$

(44.8

)

Total operating lease liabilities

 

$

460.9

 

 

Maturities of operating leases accounted for under ASC 840 as of December 31, 2018 were as follows:

 

(In millions)

 

 

 

 

Period Ending December 31, 2018

 

Operating Leases

 

2019

 

$

151.4

 

2020

 

 

115.2

 

2021

 

 

85.5

 

2022

 

 

65.0

 

2023

 

 

44.1

 

Thereafter

 

 

105.6

 

Total minimum lease payments

 

$

566.8