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Leases (Notes)
 9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Finance Leases LEASES
As Lessee

We lease real estate, transportation equipment, and office equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our finance leases include office equipment, warehouse equipment, and truck washes. The majority of our leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment.

Additional information related to our leases is as follows:
Nine Months Ended
September 30,
(in millions)20202019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$26.3 $26.7 
Operating cash flows from finance leases0.1 0.2 
Financing cash flows from finance leases0.5 2.0 
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases$21.6 $20.6 
Finance leases0.8 — 
As Lessor

We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for one year to five years and accounted for as sales-type leases with fully guaranteed residual values. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This contract residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values.

As of September 30, 2020 and December 31, 2019, the investments in lease receivables were as follows:
(in millions)September 30, 2020December 31, 2019
Future minimum payments to be received on leases$144.5 $135.0 
Guaranteed residual lease values105.6 126.6 
Total minimum lease payments to be received250.1 261.6 
Unearned income(34.8)(30.7)
Net investment in leases215.3 230.9 
Current maturities of lease receivables97.6 122.1 
Allowance for doubtful accounts(0.9)(0.6)
Current portion of lease receivables—net of allowance96.7 121.5 
Lease receivables—noncurrent$118.6 $109.4 

Before entering into a lease contract, we assess the credit quality of the potential lessee through the use of credit checks and other relevant factors, ensuring that their inherent credit risk is consistent with our existing lease portfolio. We monitor the credit quality of our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including running subsequent credit checks as needed. The following table presents our net investment in leases, which includes both current and future lease payments as of September 30, 2020 by amounts past due, our primary ongoing credit quality indicator, and lease origination year.
Net Investment in Leases by Lease Origination Year (in millions)
Amounts Past Due (in ones)
20202019201820172016PriorTotal
Greater than $3,000$3.5 $1.7 $0.9 $— $— $— $6.1 
Between $2,999 and $1,5004.9 2.1 1.3 0.5 — — 8.8 
Less than $1,49914.9 7.1 3.4 1.0 0.1 0.1 26.6 
Total$23.3 $10.9 $5.6 $1.5 $0.1 $0.1 $41.5 

Lease payments are generally due on a weekly basis and are classified as past due when payment is not received by the due date. The following table presents an aging analysis of lease payments owed to us and classified as past due as of September 30, 2020.
(in millions)September 30, 2020
1-29 days$1.3 
30-59 days0.5 
60-89 days0.3 
90 days or greater0.4 
Total past due$2.5 

Our lease receivables are recorded net of an allowance for doubtful accounts based on an aging analysis to reserve amounts expected to be uncollectible. The terms of the lease agreements generally give us the ability to take possession of the underlying asset in the event of default. We may incur credit losses in excess of recorded allowances if the full amount of anticipated proceeds from the sale or re-lease of the asset supporting the third party’s financial obligation, which can be impacted by economic conditions, is not realized.
Accrued interest on leases is included within lease receivables on the consolidated balance sheets and was not material as of September 30, 2020 and December 31, 2019. Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon notification of bankruptcy, death, or other instances management concludes collectability is not reasonably assured. The accrual of interest and other fees resumes when all payments are less than 60 days past due. At both September 30, 2020 and December 31, 2019, our net investment in leases on nonaccrual status were not material.

The table below provides additional information on our sales-type leases.
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2020201920202019
Revenue$50.8 $50.9 $150.2 $159.8 
Cost of goods sold(45.8)(46.8)(135.5)(144.0)
Operating profit$5.0 $4.1 $14.7 $15.8 
Interest income on lease receivable$6.5 $7.0 $19.7 $20.4 
Operating Leases LEASES
As Lessee

We lease real estate, transportation equipment, and office equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our finance leases include office equipment, warehouse equipment, and truck washes. The majority of our leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment.

Additional information related to our leases is as follows:
Nine Months Ended
September 30,
(in millions)20202019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$26.3 $26.7 
Operating cash flows from finance leases0.1 0.2 
Financing cash flows from finance leases0.5 2.0 
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases$21.6 $20.6 
Finance leases0.8 — 
As Lessor

We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for one year to five years and accounted for as sales-type leases with fully guaranteed residual values. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This contract residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values.

As of September 30, 2020 and December 31, 2019, the investments in lease receivables were as follows:
(in millions)September 30, 2020December 31, 2019
Future minimum payments to be received on leases$144.5 $135.0 
Guaranteed residual lease values105.6 126.6 
Total minimum lease payments to be received250.1 261.6 
Unearned income(34.8)(30.7)
Net investment in leases215.3 230.9 
Current maturities of lease receivables97.6 122.1 
Allowance for doubtful accounts(0.9)(0.6)
Current portion of lease receivables—net of allowance96.7 121.5 
Lease receivables—noncurrent$118.6 $109.4 

Before entering into a lease contract, we assess the credit quality of the potential lessee through the use of credit checks and other relevant factors, ensuring that their inherent credit risk is consistent with our existing lease portfolio. We monitor the credit quality of our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including running subsequent credit checks as needed. The following table presents our net investment in leases, which includes both current and future lease payments as of September 30, 2020 by amounts past due, our primary ongoing credit quality indicator, and lease origination year.
Net Investment in Leases by Lease Origination Year (in millions)
Amounts Past Due (in ones)
20202019201820172016PriorTotal
Greater than $3,000$3.5 $1.7 $0.9 $— $— $— $6.1 
Between $2,999 and $1,5004.9 2.1 1.3 0.5 — — 8.8 
Less than $1,49914.9 7.1 3.4 1.0 0.1 0.1 26.6 
Total$23.3 $10.9 $5.6 $1.5 $0.1 $0.1 $41.5 

Lease payments are generally due on a weekly basis and are classified as past due when payment is not received by the due date. The following table presents an aging analysis of lease payments owed to us and classified as past due as of September 30, 2020.
(in millions)September 30, 2020
1-29 days$1.3 
30-59 days0.5 
60-89 days0.3 
90 days or greater0.4 
Total past due$2.5 

Our lease receivables are recorded net of an allowance for doubtful accounts based on an aging analysis to reserve amounts expected to be uncollectible. The terms of the lease agreements generally give us the ability to take possession of the underlying asset in the event of default. We may incur credit losses in excess of recorded allowances if the full amount of anticipated proceeds from the sale or re-lease of the asset supporting the third party’s financial obligation, which can be impacted by economic conditions, is not realized.
Accrued interest on leases is included within lease receivables on the consolidated balance sheets and was not material as of September 30, 2020 and December 31, 2019. Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon notification of bankruptcy, death, or other instances management concludes collectability is not reasonably assured. The accrual of interest and other fees resumes when all payments are less than 60 days past due. At both September 30, 2020 and December 31, 2019, our net investment in leases on nonaccrual status were not material.

The table below provides additional information on our sales-type leases.
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2020201920202019
Revenue$50.8 $50.9 $150.2 $159.8 
Cost of goods sold(45.8)(46.8)(135.5)(144.0)
Operating profit$5.0 $4.1 $14.7 $15.8 
Interest income on lease receivable$6.5 $7.0 $19.7 $20.4 
Sales-type Leases LEASES
As Lessee

We lease real estate, transportation equipment, and office equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our finance leases include office equipment, warehouse equipment, and truck washes. The majority of our leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment.

Additional information related to our leases is as follows:
Nine Months Ended
September 30,
(in millions)20202019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$26.3 $26.7 
Operating cash flows from finance leases0.1 0.2 
Financing cash flows from finance leases0.5 2.0 
Right-of-use assets obtained in exchange for new lease liabilities
Operating leases$21.6 $20.6 
Finance leases0.8 — 
As Lessor

We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for one year to five years and accounted for as sales-type leases with fully guaranteed residual values. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This contract residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values.

As of September 30, 2020 and December 31, 2019, the investments in lease receivables were as follows:
(in millions)September 30, 2020December 31, 2019
Future minimum payments to be received on leases$144.5 $135.0 
Guaranteed residual lease values105.6 126.6 
Total minimum lease payments to be received250.1 261.6 
Unearned income(34.8)(30.7)
Net investment in leases215.3 230.9 
Current maturities of lease receivables97.6 122.1 
Allowance for doubtful accounts(0.9)(0.6)
Current portion of lease receivables—net of allowance96.7 121.5 
Lease receivables—noncurrent$118.6 $109.4 

Before entering into a lease contract, we assess the credit quality of the potential lessee through the use of credit checks and other relevant factors, ensuring that their inherent credit risk is consistent with our existing lease portfolio. We monitor the credit quality of our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including running subsequent credit checks as needed. The following table presents our net investment in leases, which includes both current and future lease payments as of September 30, 2020 by amounts past due, our primary ongoing credit quality indicator, and lease origination year.
Net Investment in Leases by Lease Origination Year (in millions)
Amounts Past Due (in ones)
20202019201820172016PriorTotal
Greater than $3,000$3.5 $1.7 $0.9 $— $— $— $6.1 
Between $2,999 and $1,5004.9 2.1 1.3 0.5 — — 8.8 
Less than $1,49914.9 7.1 3.4 1.0 0.1 0.1 26.6 
Total$23.3 $10.9 $5.6 $1.5 $0.1 $0.1 $41.5 

Lease payments are generally due on a weekly basis and are classified as past due when payment is not received by the due date. The following table presents an aging analysis of lease payments owed to us and classified as past due as of September 30, 2020.
(in millions)September 30, 2020
1-29 days$1.3 
30-59 days0.5 
60-89 days0.3 
90 days or greater0.4 
Total past due$2.5 

Our lease receivables are recorded net of an allowance for doubtful accounts based on an aging analysis to reserve amounts expected to be uncollectible. The terms of the lease agreements generally give us the ability to take possession of the underlying asset in the event of default. We may incur credit losses in excess of recorded allowances if the full amount of anticipated proceeds from the sale or re-lease of the asset supporting the third party’s financial obligation, which can be impacted by economic conditions, is not realized.
Accrued interest on leases is included within lease receivables on the consolidated balance sheets and was not material as of September 30, 2020 and December 31, 2019. Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon notification of bankruptcy, death, or other instances management concludes collectability is not reasonably assured. The accrual of interest and other fees resumes when all payments are less than 60 days past due. At both September 30, 2020 and December 31, 2019, our net investment in leases on nonaccrual status were not material.

The table below provides additional information on our sales-type leases.
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2020201920202019
Revenue$50.8 $50.9 $150.2 $159.8 
Cost of goods sold(45.8)(46.8)(135.5)(144.0)
Operating profit$5.0 $4.1 $14.7 $15.8 
Interest income on lease receivable$6.5 $7.0 $19.7 $20.4