Annual report pursuant to Section 13 and 15(d)

Leases (Tables)

v3.20.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Summary of Lease Assets and Liabilities Recognized Within Consolidated Balance Sheets
Leases with an initial term of twelve months or less are not recorded on the Company’s consolidated balance sheets, and the Company does not separate nonlease components from lease components. The Company’s lease assets and liabilities recognized within its consolidated balance sheets were as follows:
 
    
December 31,
     
  
2020
   
2019
     
Balance Sheet Location
  
(in millions)
     
ASSETS:
                       
Operating lease
right-of-use
assets
    $ 222.8      $ 189.5      Operating lease right-of-use assets
Finance lease
right-of-use
assets
      0.5        1.0      Property, plant, and equipment, at cost, net of accumulated depreciation and amortization(1)
    
 
 
 
   
 
 
       
Total lease assets
    $ 223.3      $ 190.5       
    
 
 
 
   
 
 
       
LIABILITIES:
                       
Current:
                       
Operating lease liabilities
    $ 35.5      $ 37.4      Other current liabilities
Finance lease liabilities
      0.2        0.6      Current portion of long-term debt
Non-current:
                       
Operating lease liabilities
      206.7        169.9     
Non-current operating lease liabilities
Finance lease liabilities
      0.3        0.5      Long-term debt, net of current portion
    
 
 
 
   
 
 
       
Total lease liabilities
    $ 242.7      $ 208.4       
    
 
 
 
   
 
 
       
 
(1)
Finance lease assets are recorded net of accumulated amortization of $1.7 million and $1.3 million as of December 31, 2020 and 2019, respectively.
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:
 
 
  
Year Ended December 31,
  
    2020    
  
    2019    
  
(in millions)
Operating lease cost(1)(2)
  
 
$
63.8
  
  
 
$
65.7
  
Finance lease cost
  
 
      
  
 
      
Amortization of
right-of-use
assets
  
 
 
0.4
  
  
 
 
0.4
  
Interest on lease liabilities
  
 
 
—  
  
  
 
 
—  
  
 
  
 
 
 
 
  
 
 
 
 
Net lease cost
  
 
$
64.2
  
  
 
$
66.1
  
 
  
 
 
 
 
  
 
 
 
 
(1)
Includes short-term leases and variable lease costs, which were $11.0 million and $1.2 million, respectively, for the year ended December 31, 2020 and $11.2 million and $2.2 million, respectively, for the year ended December 31, 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.
(2)
Amount includes $60.2 million and $62.3 million recorded to selling, general, and administrative expenses within the Company’s consolidated statements of income for the years ended December 31, 2020 and 2019, respectively, and $3.6 million and $3.4 million capitalized as part of the cost of another asset, which includes inventories, for the years ended December 31, 2020 and 2019, respectively. During the year ended December 31, 2018, the Company recognized rental expense of $61.1 million in selling, general, and administrative expenses within the Company’s consolidated statement of income pursuant to FASB ASC Topic 840,
Leases
.
Summary of Annual Scheduled Lease Payments
As of December 31, 2020, annual scheduled lease payments were as follows:
 
 
  
Operating
Leases(1)
  
Finance Leases
 
  
(in millions)
2021
  
 
$
44.6
  
  
 
$
0.2
  
2022
  
 
 
47.9
  
  
 
 
0.2
  
2023
  
 
 
31.7
  
  
 
 
0.1
  
2024
  
 
 
30.4
  
  
 
 
—  
  
2025
  
 
 
23.6
  
  
 
 
—  
  
Thereafter
  
 
 
127.1
  
  
 
 
—  
  
 
  
 
 
 
 
  
 
 
 
 
Total lease payments
  
 
 
305.3
  
  
 
 
0.5
  
Less: imputed interest
  
 
 
63.1
  
  
 
 
—  
  
 
  
 
 
 
 
  
 
 
 
 
Present value of lease liabilities
  
 
$
242.2
  
  
 
$
0.5
  
 
  
 
 
 
 
  
 
 
 
 
 
(1)
Operating lease payments exclude $23.7 million of legally binding minimum lease payments for leases signed but not yet commenced.
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:
    
December 31,
  
    
2020
    
2019
  
Weighted-average remaining lease term:
                 
Operating leases
      8.3 years       8.3 years  
Finance leases
      3.1 years       3.2 years  
Weighted-average discount rate:
                 
Operating leases
      5.5 %      5.6 % 
Finance leases
      5.1 %      5.4 % 
Summary of Supplemental Cash Flow Information Related to Leases
Supplemental cash flow information related to leases is as follows:
 
    
Year Ended December 31,
    
      2020      
   
      2019      
    
(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
          
Operating cash flows for operating leases
      $ 50.3      $ 45.9
Operating cash flows for finance lease
s
        —          —  
Financing cash flows for finance leases
        0.5        0.4
Right-of-use
assets obtained in exchange for new lease liabilities:
          
Operating leases
        74.2        55.2
Finance leases
        0.1        0.6