Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Lease Balances

A summary of our right-of-use (ROU) assets and lease liabilities is set forth below:

	June 30, 2020		December 31, 2019
	in millions
ROU assets:
Finance leases (a)	$	441.8	$	531.0
Operating leases (b)	337.8		512.7
Total ROU assets	$	779.6	$	1,043.7
Lease liabilities:
Finance leases (c)	$	514.4	$	617.1
Operating leases (d)	352.5		545.1
Total lease liabilities	$	866.9	$	1,162.2

_______________

(a) Our finance lease ROU assets are included in property and equipment, net, on our condensed consolidated balance sheets. At June 30, 2020, the weighted average remaining lease term for finance leases was 23.1 years and the weighted average discount rate was 6.0%. During the six months ended June 30, 2020 and 2019, we recorded non-cash additions to our finance lease ROU assets (including amounts related to the U.K. JV Entities) of $17.2 million and $32.6 million, respectively.

(b) Our operating lease ROU assets are included in other assets, net, on our condensed consolidated balance sheets. At June 30, 2020, the weighted average remaining lease term for operating leases was 7.6 years and the weighted average discount rate was 3.6%. During the six months ended June 30, 2020 and 2019, we recorded non-cash additions to our operating lease ROU assets (including amounts related to the U.K. JV Entities) of $53.2 million and $30.6 million, respectively.

(c) The current and long-term portions of our finance lease liabilities are included within current portion of debt and finance lease liabilities and long-term debt and finance lease liabilities, respectively, on our condensed consolidated balance sheets.

(d)

The current and long-term portions of our operating lease liabilities are included within other accrued and current liabilities and other long-term liabilities, respectively, on our condensed consolidated balance sheets.

Lease Expense and Cash Outflows from Operating and Finance Leases

A summary of our aggregate lease expense is set forth below: 

	Three months ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
	in millions
Finance lease expense:
Depreciation and amortization	$	14.4	$	22.6	$	36.1	$	45.3
Interest expense	8.1		8.9		16.2		17.0
Total finance lease expense	22.5		31.5		52.3		62.3
Operating lease expense (a)	29.8		34.1		65.6		67.3
Short-term lease expense (a)	1.5		2.1		3.3		4.0
Variable lease expense (b)	1.1		1.2		2.4		2.3
Total lease expense	$	54.9	$	68.9	$	123.6	$	135.9

_______________

(a) Our operating lease expense and short-term lease expense are included in other operating expenses, SG&A expenses and impairment, restructuring and other operating items in our condensed consolidated statements of operations.

(b) Variable lease expense represents payments made to a lessor during the lease term that vary because of a change in circumstance that occurred after the lease commencement date. Variable lease payments are expensed as incurred and are included in other operating expenses in our condensed consolidated statements of operations.

A summary of our cash outflows from operating and finance leases is set forth below: 

	Six months ended June 30,
	2020		2019
	in millions
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	60.0	$	67.4
Operating cash outflows from finance leases	16.2		17.0
Financing cash outflows from finance leases	56.9		36.6
Total cash outflows from operating and finance leases	$	133.1	$	121.0

Maturities of Operating Lease Liabilities

Maturities of our operating and finance lease liabilities as of June 30, 2020 are presented below. As a result of the held-for-sale presentation of the U.K. JV Entities on our June 30, 2020 condensed consolidated balance sheet, the amounts presented below do not include maturities of operating and finance lease liabilities of these entities. For information regarding the held-for-sale presentation of the U.K. JV Entities, see note 4. Amounts represent U.S. dollar equivalents based on June 30, 2020 exchange rates:

	Operating leases			Finance leases
	in millions
Year ending December 31:
2020 (remainder of year)	$	41.6		$	48.8
2021	67.6			91.1
2022	55.9			89.0
2023	47.9			91.5
2024	40.3			54.1
2025	34.0			49.5
Thereafter	117.4			243.0
Total payments	404.7			667.0
Less: present value discount	(52.2		)	(152.6		)
Present value of lease payments	$	352.5		$	514.4
Current portion	$	73.3		$	61.8
Noncurrent portion	$	279.2		$	452.6

Maturities of Financing Lease Liabilities

Maturities of our operating and finance lease liabilities as of June 30, 2020 are presented below. As a result of the held-for-sale presentation of the U.K. JV Entities on our June 30, 2020 condensed consolidated balance sheet, the amounts presented below do not include maturities of operating and finance lease liabilities of these entities. For information regarding the held-for-sale presentation of the U.K. JV Entities, see note 4. Amounts represent U.S. dollar equivalents based on June 30, 2020 exchange rates:

	Operating leases			Finance leases
	in millions
Year ending December 31:
2020 (remainder of year)	$	41.6		$	48.8
2021	67.6			91.1
2022	55.9			89.0
2023	47.9			91.5
2024	40.3			54.1
2025	34.0			49.5
Thereafter	117.4			243.0
Total payments	404.7			667.0
Less: present value discount	(52.2		)	(152.6		)
Present value of lease payments	$	352.5		$	514.4
Current portion	$	73.3		$	61.8
Noncurrent portion	$	279.2		$	452.6