LEASES

12 Months Ended

Dec. 31, 2019

The Company determines whether a contract is, or contains, a lease at inception. Right-of-use assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at lease commencement in determining the present value of unpaid lease payments. The Company's incremental borrowing rate is determined based on the estimated rate of interest for collateralized borrowing over a similar term as the associated lease. Right-of-use assets also include any lease payments made at or before lease commencement and any initial direct costs incurred, and exclude any lease incentives received.

The Company determines the lease term as the noncancellable period of the lease, and may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less are not recognized on the balance sheet. Certain of the Company’s leases include variable lease payments that are based on costs incurred or actual usage, or adjusted periodically based on an index or a rate. The Company’s leases do not contain any residual value guarantees.

The Company accounts for the lease and non-lease components as a single lease component for all of its leases except vehicle leases, for which the lease and non-lease components are accounted for separately.

Operating leases are included in “Operating Lease Right-of-Use Assets” and “Operating Lease Liabilities” on the Company’s consolidated condensed balance sheets.

The Company leases certain office space, manufacturing facilities, land, apartments, warehouses, vehicles, and equipment with remaining lease terms ranging from less than 1 year to 21 years, some of which include options to extend or terminate the leases.

Operating lease costs for the year ended December 31, 2019 were $27.9 million. Short-term and variable lease costs were not material for the year ended December 31, 2019.

Supplemental balance sheet information related to operating leases was as follows (in millions, except lease term and discount rate):



	December 31, 2019
Operating lease right-of-use assets	$	80.1

Operating lease liabilities, current portion	$	25.5
Operating lease liabilities, long-term portion	58.9
Total operating lease liabilities	$	84.4

Maturities of operating lease liabilities at December 31, 2019 were as follows (in millions):



2020	$	27.4
2021	20.0
2022	14.2
2023	10.1
2024	5.6
Thereafter	14.5
Total lease payments	91.8
Less: imputed interest	(7.4		)
Total lease liabilities	$	84.4

Weighted-average remaining lease term (in years)	5.3
Weighted-average discount rate	2.8		%

As of December 31, 2019, the Company had additional operating lease commitments of $1.6 million for office space that have not yet commenced. These leases will commence during 2020 with lease terms of 6 months to 7 years.

Disclosures related to periods prior to adopting the new lease guidance

Certain facilities and equipment are leased under operating leases expiring at various dates. Most of the operating leases contain renewal options. Total expense for all operating leases was $27.0 million and $27.3 million for the years 2018 and 2017, respectively.

Future minimum lease payments (including interest) under non-cancelable operating leases at December 31, 2018 were as follows (in millions):



	Operating Leases
2019	$	25.6
2020	21.5
2021	13.5
2022	9.9
2023	6.4
Thereafter	14.3
Total obligations and commitments	$	91.2