Leases

12 Months Ended

Dec. 31, 2020

Leases

Leases

Note 8 — Leases

Our leases include operating and finance leases for property and equipment. Property leases include office space in the UK, Europe, the U.S. and the Asia-Pacific region. Equipment leases include copiers and server equipment located throughout our office space. Our leases have remaining lease terms of one year to 10 years. Certain leases include options to extend or early terminate the leases, however, we currently do not intend to exercise these options, and they are not reflected in our lease assets and liabilities. The impact of operating and financing leases on our financial statements is summarized below.

Balance Sheet

Operating and financing lease assets and liabilities on our Consolidated Balance Sheets as of December 31, 2020 and 2019, consisted of the following (in millions):

Operating lease right-of-use assets:	December 31, 2020		December 31, 2019
Other non-current assets	$	121.8	$	132.6
Operating lease liabilities:
Accounts payable and accrued liabilities	$	26.8	$	24.9
Other non-current liabilities		117.8		129.4
Total operating lease liabilities	$	144.6	$	154.3
Finance lease right-of-use assets:
Property and equipment, cost	$	14.9	$	13.0
Accumulated depreciation		(12.9)		(12.2)
Property and equipment, net	$	2.0	$	0.8
Finance lease liabilities
Accounts payable and accrued liabilities	$	0.5	$	0.8
Other non-current liabilities		1.6		0.1
Total finance lease liabilities	$	2.1	$	0.9

Statement of Comprehensive Income

The components of lease expense on our Consolidated Statements of Comprehensive Income during the years ended December 31, 2020 and 2019, are summarized below (in millions):

	Year ended		Year ended
	December 31, 2020		December 31, 2019
Operating lease cost(1)	$	31.2	$	33.7
Finance lease cost:
Amortization of right-of-use asset(2)	$	0.9	$	1.1
Interest on lease liabilities(3)		0.1		—
Total finance lease cost	$	1.0	$	1.1

(1) Included in general, administrative and occupancy on our Consolidated Statements of Comprehensive Income.

(2) Included in depreciation and amortization on our Consolidated Statements of Comprehensive Income.

(3) Included in interest expense on our Consolidated Statements of Comprehensive Income.

We sublease certain office buildings in the UK. During the years ended December 31, 2020 and 2019, we received the following from tenants (in millions):

	Year ended		Year ended
	December 31, 2020		December 31, 2019
Sublease income	$	3.0	$	7.3

As collection of rents under the sublease is uncertain, we recognized impairments of a subleased ROU operating assets during the year ended December 31, 2020 and 2019 of the following (in millions):

	Year ended		Year ended
	December 31, 2020		December 31, 2019
Impairment of a subleased right-of-use operating asset	$	1.4	$	5.4

Cash Flow Statement

Cash payments for operating and finance leases included in our Consolidated Statements of Cash Flows for the year ended December 31, 2020, consisted of the following (in millions):

	Year ended		Year ended
	December 31, 2020		December 31, 2019
Operating cash flows from operating leases	$	32.4	$	28.9
Financing cash flows from finance leases	$	0.7	$	1.1

Non-cash lease transactions during the year ended December 31, 2020 and 2019, included a $1.2 million and $19.8 million ROU asset and corresponding lease liability, respectively.

Supplemental Information

The weighted-average remaining lease term, weighted-average discount rate and future lease obligations are summarized below.

	Year ended		Year ended
Weighted-average remaining lease term (in months):	December 31, 2020		December 31, 2019
Operating leases		74		80
Finance leases		52		15
	Year ended		Year ended
Weighted-average discount rate(1):	December 31, 2020		December 31, 2019
Operating leases		4.2%		4.6%
Finance leases		4.3%		2.8%

(1) Discounted using incremental borrowing rates determined for each lease as of the date of adoption, including consideration for specific interest rate environments.

Future lease obligations (in millions)	Operating leases			Finance leases
2021	$	32.3	$	0.5
2022		28.3		0.5
2023		26.0		0.5
2024		24.7		0.4
2025		17.3		0.2
Thereafter		37.0		—
Total lease payments		165.6		2.1
Less interest		21.0		—
Total	$	144.6	$	2.1