LEASES

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

LEASES

During the first quarter of 2019, the Company adopted ASU No. 2016-02, "Leases (Topic 842)," which requires leases with durations greater than twelve months to be recognized on the balance sheet. The Company adopted the standard using the modified retrospective approach with an effective date as of the beginning of our fiscal year, January 1, 2019. Prior year financial statements were not recast under the new standard and, therefore, those amounts are not presented below.

The Company leases property and equipment under finance and operating leases. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments. Many of the Company's leases include rental escalation clauses, renewal options, and/or termination options that are factored into our determination of

lease payments when appropriate. The Company does not separate lease and non-lease components. As most of the Company's leases do not provide a readily stated discount rate, the Company must estimate our incremental borrowing rate to discount lease payments. The Company has established discount rates by geographic region ranging from 1.0% to 12.3%.

The components of lease expense are as follows:

	For the year ended Ended December 31,
In millions	2019
Operating lease expense	$	54.4
Finance lease expense amortization of leased assets	1.1
Short-term and variable lease expense	0.6
Sublease income	(0.5)
Total	$	55.6

Scheduled payments of lease liabilities are as follows:

In millions	Operating Leases		Finance Leases		Total
2020	$	53.9	$	0.4	$	54.3
2021	45.3		0.2		45.5
2022	38.1		0.2		38.3
2023	33.4		0.2		33.6
2024	29.3		0.1		29.4
Thereafter	103.2		0.2		103.4
Total lease payments	303.2		1.3		304.5
Less: Present value discount	(30.1)		—		(30.1)
Present value lease liabilities	$	273.1	$	1.3	$	274.4

The following table summarizes the remaining lease term and discount rate assumptions used to develop the present value of lease liabilities:

	December 31,
	2019
Weighted-average remaining lease term (years)
Operating leases	7.0
Finance leases	5.2
Weighted-average discount rate
Operating leases	4.6	%
Finance leases	1.4	%

Leases

LEASES

During the first quarter of 2019, the Company adopted ASU No. 2016-02, "Leases (Topic 842)," which requires leases with durations greater than twelve months to be recognized on the balance sheet. The Company adopted the standard using the modified retrospective approach with an effective date as of the beginning of our fiscal year, January 1, 2019. Prior year financial statements were not recast under the new standard and, therefore, those amounts are not presented below.

The Company leases property and equipment under finance and operating leases. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments. Many of the Company's leases include rental escalation clauses, renewal options, and/or termination options that are factored into our determination of

lease payments when appropriate. The Company does not separate lease and non-lease components. As most of the Company's leases do not provide a readily stated discount rate, the Company must estimate our incremental borrowing rate to discount lease payments. The Company has established discount rates by geographic region ranging from 1.0% to 12.3%.

The components of lease expense are as follows:

	For the year ended Ended December 31,
In millions	2019
Operating lease expense	$	54.4
Finance lease expense amortization of leased assets	1.1
Short-term and variable lease expense	0.6
Sublease income	(0.5)
Total	$	55.6

Scheduled payments of lease liabilities are as follows:

In millions	Operating Leases		Finance Leases		Total
2020	$	53.9	$	0.4	$	54.3
2021	45.3		0.2		45.5
2022	38.1		0.2		38.3
2023	33.4		0.2		33.6
2024	29.3		0.1		29.4
Thereafter	103.2		0.2		103.4
Total lease payments	303.2		1.3		304.5
Less: Present value discount	(30.1)		—		(30.1)
Present value lease liabilities	$	273.1	$	1.3	$	274.4

The following table summarizes the remaining lease term and discount rate assumptions used to develop the present value of lease liabilities:

	December 31,
	2019
Weighted-average remaining lease term (years)
Operating leases	7.0
Finance leases	5.2
Weighted-average discount rate
Operating leases	4.6	%
Finance leases	1.4	%