The Company leases parking facilities, office space, warehouses, vehicles and equipment and determines if an arrangement is a lease at inception. The Company subleases certain real estate to third parties. The Company's sublease portfolio consists of operating leases for space within leased parking facilities.

The Company accounts for leases in accordance with Topic 842. Operating lease ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent the Company's "right-of-use" over an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The ROU asset includes cumulative prepaid or accrued rent, as well as lease incentives, initial direct costs and acquired lease contracts. The short term lease exception has been applied to leases with an initial term of 12 months or less and therefore, these leases are not recorded on the balance sheet.

As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. Lease expense is recognized on a straight-line basis over the lease term.

For leases that include one or more options to renew, the exercise of such renewal options is at the Company's sole discretion or mutual agreement. The Company’s lease term may include renewal options that are at the Company’s sole discretion and are reasonably certain to be exercised. Equipment and vehicle leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Variable lease components comprising of payments that are a percentage of parking services revenue based on contractual levels and rental payments adjusted periodically for inflation are not included in the lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As discussed in Note 1. Significant Accounting Policies and Practices, the Company tests ROU assets when impairment indicators are present. Due to the impact of COVID-19 on the Company's operating cash flows, the Company determined certain impairment testing triggers had occurred within its asset groups during the three months ended March 31, 2020. Accordingly, the Company performed an undiscounted cash flow analysis on certain operating lease ROU assets during the three months ended March 31, 2020. Based on the undiscounted cash flow analysis as of March 31, 2020, the Company determined that certain ROU asset groups had net carrying values that exceeded their estimated undiscounted future cash flows and fair value for these asset groups was determined. The fair value of the ROU assets measured on a non-recurring basis, which is classified as Level 3 in the fair value hierarchy, was determined based on estimates of future discounted cash flows. The estimated fair values were compared to net carrying values, and as a result, ROU assets held and used with a carrying amount of $224.9 million were determined to have a fair value of $147.4 million, resulting in impairment charges of $77.5 million in the Commercial segment during the three months ended March 31, 2020, which was included within Lease impairment in the Condensed Consolidated Statements of Income (Loss). The Company recorded $0.1 million of impairment charges during the three months ended March 31, 2021, which was included within Lease impairment in the Condensed Consolidated Statements of Income (Loss).

In April 2020, the FASB staff provided accounting elections for entities that receive or provide lease-related concessions to mitigate the economic effects of COVID-19 on lessees. The Company elected not to evaluate whether certain concessions provided by lessors in response to COVID-19, that are within the scope of additional interpretation provided by the FASB in April 2020, were lease modifications and has also elected not to apply modification guidance under Topic 842. These concessions will be recognized as a reduction of rent expense in the month they occur and will be recorded within Cost of parking services within the Condensed Consolidated Statements of Income (Loss). As a result of COVID-19, the Company was able to negotiate lease concessions with certain landlords. These rent concessions have been recorded in accordance with the guidance noted above. As a result, the Company recorded $5.0 million related to rent concessions as a reduction to cost of services during the three months ended March 31, 2021. The Company did not receive any concessions during the three months ended March 31, 2020.

Costs associated with the right to use the infrastructure on service concession arrangements are recorded as a reduction of revenue in accordance with the scope of ASU No. 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services. See Note 4. Revenue for further discussion on service concession arrangements.

The components of ROU assets and lease liabilities and classification on the Condensed Consolidated Balance Sheet as of March 31, 2021 (unaudited) and December 31, 2020 were as follows:

(millions)	Classification	March 31, 2021		December 31, 2020
Assets
Operating	Right-of-use assets	$	219.9	$	235.1
Finance	Leasehold improvements, equipment and construction in progress, net		27.3		28.8
Total leased assets		$	247.2	$	263.9
Liabilities
Current
Operating	Short-term lease liabilities	$	80.4	$	82.1
Finance	Current portion of long-term obligations under Senior Credit Facility and other long-term borrowings		7.4		7.8
Noncurrent
Operating	Long-term lease liabilities		224.1		243.4
Finance	Long-term borrowings, excluding current portion		18.7		20.5
Total lease liabilities		$	330.6	$	353.8

The components of lease cost and classification in the Condensed Consolidated Statement of Income (Loss) for the three months ended March 31, 2021 and 2020 (unaudited) were as follows:

		Three Months Ended
(millions)	Classification	March 31, 2021		March 31, 2020
Operating lease cost^(a)(b)	Cost of services - lease type contracts	$	14.0	$	35.6
Short-term lease^(a)	Cost of services - lease type contracts		4.7		8.8
Variable lease	Cost of services - lease type contracts		3.6		7.8
Operating lease cost			22.3		52.2
Finance lease cost
Amortization of leased assets	Depreciation and amortization		1.5		0.7
Interest on lease liabilities	Interest expense		0.3		0.2
Lease impairment	Lease impairment		0.1		77.5
Net lease cost		$	24.2	$	130.6

Sublease income was $0.4 million during the three months ended March 31, 2021 and 2020.

The Company has not entered into operating lease arrangements as of March 31, 2021 that commence in future periods.

Maturities of lease liabilities, lease term, and discount rate information as of March 31, 2021 (unaudited) were as follows:

(millions)	Operating Leases Liabilities			Finance Leases Liabilities			Total
2021	$	69.6		$	6.4		$	76.0
2022		79.3			7.4			86.7
2023		59.2			5.3			64.5
2024		41.8			3.4			45.2
2025		29.7			1.7			31.4
After 2025		69.3			5.1			74.4
Total lease payments		348.9			29.3			378.2
Less: Imputed interest		44.4			3.2			47.6
Present value of lease liabilities	$	304.5		$	26.1		$	330.6
Weighted-average remaining lease term (years)		5.5			5.0
Weighted-average discount rate		5.0	%		4.3	%

Future sublease income for the above periods shown was excluded as the amounts are not material.

Supplemental cash flow information related to leases for the three months ended March 31, 2021 and 2020 (unaudited) was as follows:

	Three Months Ended
(millions)	March 31, 2021		March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows related to operating leases	$	24.0	$	50.3
Operating cash outflows related to interest on finance leases		0.3		0.2
Financing cash outflows related to finance leases		2.1		0.8
Leased assets obtained in exchange for new operating liabilities		1.7		8.1
Leased assets obtained in exchange for new finance lease liabilities		—		2.1