COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

The Company is defending various claims and legal actions which have arisen in the ordinary course of business. In the opinion of management, based on current knowledge of the facts and after discussion with counsel, these claims and legal actions can be defended or resolved without a material effect on the Company’s financial position, results of operations, and net cash flows.

At June 30, 2020, the Company had $8.5 million of commitments primarily for capital expenditures and purchase of raw materials to be used in production.

The Company provides warranties on most of its products. The warranty terms vary but are generally two years to five years from date of manufacture or one year to five years from date of installation. Provisions for estimated expenses related to product warranty are made at the time products are sold or when specific warranty issues are identified. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims. The Company actively studies trends of warranty claims and takes actions to improve product quality and minimize warranty claims. The Company believes that the warranty reserve is appropriate; however, actual claims incurred could differ from the original estimates, requiring adjustments to the reserve.

The changes in the carrying amount of the warranty accrual, as recorded in the "Accrued expenses and other current liabilities" line of the Company's condensed consolidated balance sheet for the six months ended June 30, 2020, are as follows:


(In millions)
Balance as of December 31, 2019	$	9.1
Accruals related to product warranties	4.8
Additions related to acquisitions	—
Reductions for payments made	(4.8)
Balance as of June 30, 2020	$	9.1

The Company maintains certain warehouses, distribution centers, office space, and equipment operating leases. The Company also has lease agreements that are classified as financing. These financing leases are immaterial to the Company.

The Company utilizes interest rates from lease agreements unless the lease agreement does not provide a readily determinable rate. In these instances, the Company utilizes its incremental borrowing rate based on the information available as of the adoption of ASU 2016-02 or at the inception of any new leases entered into thereafter when determining the present value of future lease payments.

Some of the Company’s leases include renewal options. The Company excludes these renewal options in the expected lease term unless the Company is reasonably certain that the option will be exercised.

The components of the Company’s operating lease portfolio as of the second quarter and six months ended June 30, 2020 are as follows:


Lease Cost (in millions):	Second Quarter Ended		Six Months Ended
Operating lease cost	$	3.2	$	5.2
Short-term lease cost	0.1		0.2

Other Information:
Weighted-average remaining lease term			4 years
Weighted-average discount rate			3.8		%

The minimum rental payments for non-cancellable operating leases as of June 30, 2020, are as follows:


(In millions)	2020		2021		2022		2023		2024		Thereafter
Future Minimum Rental Payments	$	5.7	$	9.5	$	6.2	$	3.9	$	1.6	$	2.5