PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2019

As of December 31, 2019 and 2018, the Company's property, plant and equipment balances consisted of the following:



	December 31,
	2019		2018
Land and improvements	$	11.0	$	11.2
Building and improvements	113.0		103.2
Machinery and equipment	296.0		286.7
Office furniture, fixtures and capitalized software	241.5		220.0
Counters and trade fixtures	52.9		56.0
Leasehold improvements	50.1		51.5
Construction-in-progress	14.0		51.1
Right-of-Use assets ^(a)	118.2		—
Property, plant and equipment, gross	896.7		779.7
Accumulated depreciation and amortization	(488.1)		(425.2)
Property, plant and equipment, net	$	408.6	$	354.5

^(a) Following implementation of ASC 842 under the modified retrospective approach as of January 1, 2019, this caption includes the Company's ROU assets for operating and finance leases. Finance leases of approximately $5.5 million were included in machinery and equipment as of December 31, 2018. See discussion below for further information.

Depreciation and amortization expense on property, plant and equipment for December 31, 2019 and December 31, 2018 was $63.4 million and $66.8 million, respectively.

Leases

Products Corporation leases facilities for executive offices, warehousing, research and development and sales operations and leases various types of equipment under operating and finance lease agreements. The majority of Products Corporation’s real estate leases, in terms of total undiscounted payments, are located in the U.S.

The Company adopted ASU No. 2016-02 beginning as of January 1, 2019, using a modified retrospective approach and applying the standard’s transition provisions at the effective date of January 1, 2019. The comparative information has not been restated and continues to be reported under the lease accounting standard in effect for those periods.

The Company's adoption of ASU No. 2016-02 had a material impact on the Company’s consolidated balance sheets but did not have an impact on the Company’s statements of operations and comprehensive loss and cash flows.

As of January 1, 2019, the Company's adoption of ASU No. 2016-02 resulted in:

•the recognition of ROU assets for operating leases and finance leases of approximately $109.3 million and $1.5 million, respectively;

•the recognition of lease liabilities for operating leases and finance leases of approximately $123.4 million and $1.4 million, respectively; and

•a decrease of approximately $11.3 million in accrued rent (of which $10.7 million was recorded in other long-term liabilities and $0.6 million was recorded in accrued expenses and other current liabilities), a decrease of approximately $3.5 million in lease termination liabilities and a decrease of approximately $0.7 million in prepaid rent, due to adjustments to balances previously recorded on the consolidated balance sheets upon transition from the legacy ASC 840 to ASC 842.

The following table includes disclosure related to the new ASC 842 lease standard, after application of the aforementioned practical expedients and short-term lease considerations:


	Year Ended
	December 31, 2019
Lease Cost:
Finance Lease Cost:
Amortization of ROU assets	$	0.3
Interest on lease liabilities	0.2
Operating Lease Cost	41.7
Total Lease Cost	$	42.2

Other Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	0.2
Operating cash flows from operating leases	39.4
Financing cash flows from finance leases	0.8

ROU assets for finance leases	1.0
ROU assets for operating leases	91.4
Amortization on ROU assets for finance leases	0.3
Amortization on ROU assets for operating leases	23.2

Weighted-average remaining lease term - finance leases	2.8 years
Weighted-average remaining lease term - operating leases	6.2 years

Weighted-average discount rate - finance leases	15.6		%
Weighted-average discount rate - operating leases	15.8		%

Maturities of lease liabilities as of December 31, 2019 were as follows:


	Operating Leases		Finance Leases
2020	$	34.0	$	0.7
2021	30.5		0.5
2022	24.0		0.3
2023	19.7		—
2024	14.3		—
Thereafter	46.8		—
Total undiscounted cash flows	$	169.3	$	1.5

Present value:
Short-term lease liability	$	14.0	$	0.5
Long-term lease liability	92.8		0.5
Total lease liability	$	106.8	$	1.0
Difference between undiscounted cash flows and discounted cash flows	$	62.5	$	0.5

The following table presents the minimum rental commitments under the Company's non-cancelable leases, including those pertaining to idled facilities, as of December 31, 2018 under the guidance applicable prior to the adoption of ASC 842.


Minimum Rental Commitments	2019		2020		2021		2022		2023		Thereafter		Total
Capital Leases	$	1.1	$	0.6	$	0.3	$	0.2	$	0.2	$	0.2	$	2.6
Operating Leases	42.5		33.8		29.8		22.6		18.5		57.5		204.7

Products Corporation currently leases facilities for executive offices, warehousing, research and development and sales operations and leases various types of equipment under operating and capital lease agreements. Rental expense for these facilities and equipment was $46.5 million and $41.6 million for 2018 and 2017, respectively.