Operating Leases

12 Months Ended

Dec. 31, 2014

The company leases office space in the majority of its locations of business under non-cancelable operating leases. These leases and commitments expire on varying dates through 2025.

As of December 31, 2014, the company's total future commitments by year under non-cancelable operating leases are as follows:



$ in millions	Total	Buildings	Other
2015	71.6	68.5	3.1
2016	72.2	69.2	3.0
2017	60.5	57.6	2.9
2018	61.6	59.1	2.5
2019	56.2	53.8	2.4
Thereafter	206.2	203.7	2.5
Gross lease commitments	528.3	511.9	16.4
Less: future minimum payments expected to be received under non-cancelable subleases	66.0	66.0	—
Net lease commitments	462.3	445.9	16.4

The company is party to master lease agreements with various property owners and is party to sublease agreements with tenants in its capacity as investment manager of property portfolios. The company's future commitments to the property owners is equal to and offset by the future minimum payments expected to be received from the tenants; therefore, these amounts are not included in the table above.

The company recognized $86.8 million, $63.0 million, and $67.4 million in operating lease expenses in the Consolidated Statements of Income in 2014, 2013 and 2012, respectively. These expenses are net of $11.6 million, $11.1 million and $11.4 million of sublease income in 2014, 2013 and 2012, respectively.

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

+ References+ Details