Leases

12 Months Ended

Dec. 31, 2020

On January 1, 2019, we adopted FASB Accounting Standards Codification, or ASC, Topic 842, Leases, or ASC 842. As permitted by ASC 842, we elected the adoption date of January 1, 2019, which is the date of initial application. Prior to January 1, 2019, rent expense continues to be reported under ASC Topic 840, Leases, or ASC 840

The components of lease cost under ASC 842 were (in millions):


	Year Ended December 31,
	2020		2019
Operating lease cost	$	303.6	$	317.8
Variable lease cost	28.5		38.2
Short-term lease cost	4.3		4.9
Sublease income	(0.9)		(5.1)
	335.5		355.8
Finance lease cost:
Amortization of ROU assets	50.2		43.2
Interest	5.3		5.1
	55.5		48.3
Total lease cost	$	391.0	$	404.1

Rent expense under ASC 840 for the year ended December 31, 2018 was (in millions):


	2018
Office rent	$	295.0
Equipment rent	16.6
Third-party sublease rent	(7.2)
Total rent cost	$	304.4

Amortization expense for assets under capital lease was $36.7 million in 2018.

The balance sheet classification, weighted average remaining lease term and weighted average discount rate related to our operating and finance leases were (in millions):


	December 31,
	2020			2019
Operating leases:
ROU asset	$	1,223.4		$	1,398.3
Lease liability:
Other current liabilities	$	270.5		$	290.3
Long-term liability - operating leases	1,114.0			1,274.7
	$	1,384.5		$	1,565.0

Weighted average remaining lease term (years)	7.9			8.2
Weighted average discount rate	3.7		%	3.8		%
Finance leases:
Property and equipment, net	$	120.7		$	138.7
Lease liability:
Other current liabilities	$	49.5		$	46.6
Long-term liabilities	74.6			92.1
	$	124.1		$	138.7

Weighted average remaining lease term (years)	3.0			3.4
Weighted average discount rate	4.2		%	4.3		%

At December 31, 2020, the maturities of the lease liabilities were (in millions):


	Operating Leases		Finance Leases
2021	$	313.8	$	49.7
2022	256.6		36.7
2023	193.6		24.2
2024	167.9		11.9
2025	141.9		4.1
Thereafter	536.2		3.7
Total lease payments	1,610.0		130.3
Less: Imputed interest	225.5		6.2
Present value of lease liability	$	1,384.5	$	124.1