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Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
In February 2016, the FASB issued guidance requiring lessees to recognize an ROU asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. The new standard allowed for the application of the standard on the adoption date without restatement of prior comparative periods presented or a modified retrospective transition method which required application of the new guidance at the beginning of the earliest comparative period presented. The Company adopted this new standard as of January 1, 2019, without restating prior comparative periods. The Company recorded an ROU asset and lease liability for operating leases at adoption of $51.7 million and $56.3 million, respectively.
The Company and its subsidiaries lease certain facilities, machinery and equipment, and office buildings under long-term, non-cancelable operating leases. The leases generally provide for renewal options ranging from one to twenty years.
The following table summarizes the Company's lease costs:
Year Ended December 31,
20202019
 (In millions)
Operating lease cost$15.5 $14.2 
Finance lease cost:
Amortization
2.9 4.0 
Interest on lease liabilities
2.7 2.9 
Short-term lease cost0.5 0.8 
Total lease costs$21.6 $21.9 
Rent expense was $17.2 million in 2018.
The following table summarizes the supplemental cash flow information related to leases:
Year Ended December 31,
20202019
 (In millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$13.7 $14.2 
Operating cash flows for finance leases
2.7 2.9 
Financing cash flows for finance leases
2.1 3.3 
Assets obtained in exchange for lease obligations:
Operating leases
11.9 7.7 
Finance leases
— 23.8 
The following table summarizes the supplemental balance sheet information related to leases:
As of December 31,
20202019
(In millions)
Operating leases:
Operating lease right-of-use assets
$46.8 $48.0 
Operating lease liabilities (component of other current liabilities)
$13.4 $12.0 
Operating lease liabilities, noncurrent
35.7 39.1 
$49.1 $51.1 
Finance leases:
Property, plant and equipment
$52.9 $52.9 
Accumulated depreciation
(8.6)(5.8)
Property, plant and equipment, net
$44.3 $47.1 
Current portion of long-term debt
$2.2 $2.1 
Long-term debt
43.4 45.6 
Total finance lease liability
$45.6 $47.7 
Weighted-average remaining lease term (in years):
Operating leases
76
Finance leases
1718
Weighted-average discount rate:
Operating leases
4.4 %4.7 %
Finance leases
5.9 %5.2 %
The Company has additional information technology equipment operating leases that have not yet commenced amounting to $0.9 million. These operating leases will commence between 2021 and 2022 with lease terms of up to two years.
The following table presents the maturities of lease liabilities and lease revenue in effect as of December 31, 2020:
Year Ending December 31,Operating LeasesFinance LeasesFuture Minimum
Rental Income 
 (In millions)
2021$14.9 $4.7 $1.6 
202213.0 4.4 1.6 
20236.6 3.7 1.0 
20243.0 3.8 0.9 
20252.9 3.8 0.8 
Thereafter16.0 53.7 5.8 
Total minimum rentals56.4 74.1 11.7 
Less: imputed interest(7.3)(28.5)— 
Total
$49.1 $45.6 $11.7 
The Company also leases certain surplus facilities to third parties. The Company recorded lease income of $3.3 million, $7.5 million, and $6.4 million in 2020, 2019 and 2018, respectively, related to these arrangements, which have been included in net sales.
Leases Leases
In February 2016, the FASB issued guidance requiring lessees to recognize an ROU asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. The new standard allowed for the application of the standard on the adoption date without restatement of prior comparative periods presented or a modified retrospective transition method which required application of the new guidance at the beginning of the earliest comparative period presented. The Company adopted this new standard as of January 1, 2019, without restating prior comparative periods. The Company recorded an ROU asset and lease liability for operating leases at adoption of $51.7 million and $56.3 million, respectively.
The Company and its subsidiaries lease certain facilities, machinery and equipment, and office buildings under long-term, non-cancelable operating leases. The leases generally provide for renewal options ranging from one to twenty years.
The following table summarizes the Company's lease costs:
Year Ended December 31,
20202019
 (In millions)
Operating lease cost$15.5 $14.2 
Finance lease cost:
Amortization
2.9 4.0 
Interest on lease liabilities
2.7 2.9 
Short-term lease cost0.5 0.8 
Total lease costs$21.6 $21.9 
Rent expense was $17.2 million in 2018.
The following table summarizes the supplemental cash flow information related to leases:
Year Ended December 31,
20202019
 (In millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$13.7 $14.2 
Operating cash flows for finance leases
2.7 2.9 
Financing cash flows for finance leases
2.1 3.3 
Assets obtained in exchange for lease obligations:
Operating leases
11.9 7.7 
Finance leases
— 23.8 
The following table summarizes the supplemental balance sheet information related to leases:
As of December 31,
20202019
(In millions)
Operating leases:
Operating lease right-of-use assets
$46.8 $48.0 
Operating lease liabilities (component of other current liabilities)
$13.4 $12.0 
Operating lease liabilities, noncurrent
35.7 39.1 
$49.1 $51.1 
Finance leases:
Property, plant and equipment
$52.9 $52.9 
Accumulated depreciation
(8.6)(5.8)
Property, plant and equipment, net
$44.3 $47.1 
Current portion of long-term debt
$2.2 $2.1 
Long-term debt
43.4 45.6 
Total finance lease liability
$45.6 $47.7 
Weighted-average remaining lease term (in years):
Operating leases
76
Finance leases
1718
Weighted-average discount rate:
Operating leases
4.4 %4.7 %
Finance leases
5.9 %5.2 %
The Company has additional information technology equipment operating leases that have not yet commenced amounting to $0.9 million. These operating leases will commence between 2021 and 2022 with lease terms of up to two years.
The following table presents the maturities of lease liabilities and lease revenue in effect as of December 31, 2020:
Year Ending December 31,Operating LeasesFinance LeasesFuture Minimum
Rental Income 
 (In millions)
2021$14.9 $4.7 $1.6 
202213.0 4.4 1.6 
20236.6 3.7 1.0 
20243.0 3.8 0.9 
20252.9 3.8 0.8 
Thereafter16.0 53.7 5.8 
Total minimum rentals56.4 74.1 11.7 
Less: imputed interest(7.3)(28.5)— 
Total
$49.1 $45.6 $11.7 
The Company also leases certain surplus facilities to third parties. The Company recorded lease income of $3.3 million, $7.5 million, and $6.4 million in 2020, 2019 and 2018, respectively, related to these arrangements, which have been included in net sales.