Leases (Tables)
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6 Months Ended |
Jun. 30, 2019 |
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| Leases [Abstract] |
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| Summary of Lease Assets and Liabilities Recognized Within Condensed Consolidated Balance Sheets |
Leases with an initial term of twelve months or less are not recorded on the Company’s condensed consolidated balance sheets, and the Company does not separate nonlease components from lease components. The Company’s lease assets and liabilities recognized within its condensed consolidated balance sheets were as follows:
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June 30,
2019
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Balance Sheet Location
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(in millions)
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ASSETS:
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Operating lease right-of-use assets
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$
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180.0
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Operating lease right-of-use assets
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Finance lease right-of-use assets
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0.6
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Property, plant, and equipment, at cost, net of accumulated depreciation and amortization(1)
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Total lease assets
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$
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180.6
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LIABILITIES:
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Current:
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Operating lease liabilities
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$
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32.9
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Other current liabilities
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Finance lease liabilities
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0.4
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Current portion of long-term debt
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Non-current:
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Operating lease liabilities
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161.0
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Non-current operating lease liabilities
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Finance lease liabilities
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0.3
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Long-term debt, net of current portion
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Total lease liabilities
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$
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194.6
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(1)
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Finance lease assets are recorded net of accumulated amortization of $1.1 million as of June 30, 2019.
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| Summary of Lease Cost Recognized Over the Lease Term |
Lease cost is recognized on a straight-line basis over the lease term. The components of lease cost are as follows:
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Three Months Ended
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Six Months Ended
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June 30,
2019
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June 30,
2019
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(in millions)
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Operating lease cost(1)(2)
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$
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16.5
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$
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32.3
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Finance lease cost
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Amortization of right-of-use assets
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0.1
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0.2
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Interest on lease liabilities
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—
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—
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Net lease cost
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$
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16.6
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$
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32.5
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(1)
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Includes short-term leases and variable lease costs, which were $3.2 million and $0.3 million, respectively, for the three months ended June 30, 2019 and $5.9 million and $0.6 million, respectively, for the six months ended June 30, 2019. Variable lease costs, which include items such as real estate taxes, common area maintenance, and changes based on an index or rate, are not included in the calculation of the right-of-use assets and are recognized as incurred.
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(2)
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Amounts include $15.6 million and $30.6 million for the three and six months ended June 30, 2019, respectively, recorded to selling, general, and administrative expenses within the Company’s condensed consolidated statements of income and $0.9 million and $1.7 million for the three and six months ended June 30, 2019, respectively, capitalized as part of the cost of another asset, which includes inventories. During the three and six months ended June 30, 2018, the Company recognized rental expense of $16.2 million and $30.9 million, respectively, in selling, general, and administrative expenses within the Company’s condensed consolidated statements of income pursuant to FASB ASC Topic 840, Leases.
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| Summary of Annual Scheduled Lease Payments |
As of June 30, 2019, annual scheduled lease payments were as follows:
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Operating Leases(1)
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Finance Leases(2)
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(in millions)
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2019
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$
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15.3
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$
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0.2
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2020
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42.3
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0.4
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2021
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32.9
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0.1
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2022
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26.6
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—
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2023
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15.6
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—
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Thereafter
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127.4
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—
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Total lease payments
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260.1
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0.7
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Less: imputed interest
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66.2
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—
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Present value of lease liabilities
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$
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193.9
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$
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0.7
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(1)
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Operating lease payments exclude $0.3 million of legally binding minimum lease payments for leases signed but not yet commenced.
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(2)
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Finance lease payments exclude $0.6 million of legally binding minimum lease payments for leases signed but not yet commenced.
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| Future Minimum Rental Commitments for Non-Cancelable Operating Leases |
As of December 31, 2018, future minimum rental commitments for non-cancelable operating leases were as follows:
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Operating Leases
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(in millions)
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2019
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$
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43.1
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2020
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36.3
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2021
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27.4
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2022
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23.0
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2023
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12.5
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Thereafter
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111.4
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Total
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$
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253.7
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| Summary of Weighted-average Remaining Lease Term and Weighted-average Discount Rate |
The weighted-average remaining lease term and weighted-average discount rate used to calculate the present value of lease liabilities are as follows:
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June 30,
2019
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Weighted-average remaining lease term:
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Operating leases
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9.0 years
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Finance leases
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1.7 years
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Weighted-average discount rate:
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Operating leases
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5.8
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%
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Finance leases
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5.7
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%
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| Summary of Supplemental Cash Flow Information Related to Leases |
Supplemental cash flow information related to leases is as follows:
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Six Months Ended
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June 30,
2019
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(in millions)
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Cash paid for amounts included in the measurement of lease liabilities:
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Operating cash flows for operating leases
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$
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23.2
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Operating cash flows for finance leases
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—
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Financing cash flows for finance leases
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0.2
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Right-of-use assets obtained in exchange for new lease liabilities:
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Operating leases
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24.2
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Finance leases
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—
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