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Leases
 3 Months Ended
Feb. 29, 2020
Leases [Abstract]  
Leases LEASESOur lease portfolio primarily consists of (i) certain real estate, including those related to a number of administrative, distribution and manufacturing locations; (ii) certain machinery and equipment, including forklifts; and (iii) automobiles, delivery trucks and other vehicles, including an airplane. When our real estate lease arrangements include lease and non-lease components (for example, common area maintenance), we account for each component separately, based on their relative standalone prices. For all other asset categories, we combine lease components and non-lease components into a single lease commitment. We determine if an agreement is a lease or contains a lease at inception. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet.
ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are based on the estimated present value of lease payments over the lease term and are recognized at the lease commencement date.

As most of our leases do not provide an implicit borrowing rate, we use our estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date.

Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. A limited number of our lease agreements include rental payments that are adjusted periodically based on a market rate or index. Our lease agreements generally do not contain residual value guarantees or material restrictive covenants.

The components of lease expense for the three months ended February 29, 2020 were as follows (in millions):

Operating lease cost$10.1  
Finance lease cost:
Amortization of ROU assets2.2  
Interest on lease liabilities1.1  
Net lease cost (1)
$13.4  
(1) Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial.


Supplemental balance sheet information related to leases as of February 29, 2020 were as follows (in millions):


LeasesClassification
Assets
Operating lease ROU assetsOther long-term assets$128.5  
Finance lease ROU assetsProperty, plant and equipment, net127.5  
Total leased assets$256.0  
Liabilities
Current
Operating Other accrued liabilities $34.2  
FinanceCurrent portion of long-term debt 7.2  
Non-current
Operating Other long-term liabilities 97.8  
Finance Long-term debt 130.7  
Total lease liabilities $269.9  


Information regarding our lease terms and discount rates as of February 29, 2020 were as follows:
Weighted-average remaining lease term (years)Weighted-average discount rate
Operating leases5.82.2 %
Finance leases14.73.3 %


The future maturity of our lease liabilities as of February 29, 2020 were as follows (in millions):


Operating leasesFinance leasesTotal
2020 (remainder of year)$28.4  $8.5  $36.9  
202131.6  11.4  43.0  
202223.2  11.4  34.6  
202317.2  11.4  28.6  
202410.9  11.5  22.4  
Thereafter33.8  125.9  159.7  
Total lease payments145.1  180.1  325.2  
Less: Imputed interest13.1  42.2  55.3  
Total lease liabilities $132.0  $137.9  $269.9  

Supplemental cash flow and other information related to leases for the three months ended February 29, 2020 were as follows (in million):

Cash paid for amounts included in the measurements of lease liabilities:
 Operating cash flows used for operating leases$10.0  
 Operating cash flows used for finance leases 1.1  
 Financing cash flows used for finance leases1.7  
ROU assets obtained in exchange for lease liabilities
 Operating leases$1.3  
Leases LEASESOur lease portfolio primarily consists of (i) certain real estate, including those related to a number of administrative, distribution and manufacturing locations; (ii) certain machinery and equipment, including forklifts; and (iii) automobiles, delivery trucks and other vehicles, including an airplane. When our real estate lease arrangements include lease and non-lease components (for example, common area maintenance), we account for each component separately, based on their relative standalone prices. For all other asset categories, we combine lease components and non-lease components into a single lease commitment. We determine if an agreement is a lease or contains a lease at inception. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet.
ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are based on the estimated present value of lease payments over the lease term and are recognized at the lease commencement date.

As most of our leases do not provide an implicit borrowing rate, we use our estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date.

Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. A limited number of our lease agreements include rental payments that are adjusted periodically based on a market rate or index. Our lease agreements generally do not contain residual value guarantees or material restrictive covenants.

The components of lease expense for the three months ended February 29, 2020 were as follows (in millions):

Operating lease cost$10.1  
Finance lease cost:
Amortization of ROU assets2.2  
Interest on lease liabilities1.1  
Net lease cost (1)
$13.4  
(1) Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial.


Supplemental balance sheet information related to leases as of February 29, 2020 were as follows (in millions):


LeasesClassification
Assets
Operating lease ROU assetsOther long-term assets$128.5  
Finance lease ROU assetsProperty, plant and equipment, net127.5  
Total leased assets$256.0  
Liabilities
Current
Operating Other accrued liabilities $34.2  
FinanceCurrent portion of long-term debt 7.2  
Non-current
Operating Other long-term liabilities 97.8  
Finance Long-term debt 130.7  
Total lease liabilities $269.9  


Information regarding our lease terms and discount rates as of February 29, 2020 were as follows:
Weighted-average remaining lease term (years)Weighted-average discount rate
Operating leases5.82.2 %
Finance leases14.73.3 %


The future maturity of our lease liabilities as of February 29, 2020 were as follows (in millions):


Operating leasesFinance leasesTotal
2020 (remainder of year)$28.4  $8.5  $36.9  
202131.6  11.4  43.0  
202223.2  11.4  34.6  
202317.2  11.4  28.6  
202410.9  11.5  22.4  
Thereafter33.8  125.9  159.7  
Total lease payments145.1  180.1  325.2  
Less: Imputed interest13.1  42.2  55.3  
Total lease liabilities $132.0  $137.9  $269.9  

Supplemental cash flow and other information related to leases for the three months ended February 29, 2020 were as follows (in million):

Cash paid for amounts included in the measurements of lease liabilities:
 Operating cash flows used for operating leases$10.0  
 Operating cash flows used for finance leases 1.1  
 Financing cash flows used for finance leases1.7  
ROU assets obtained in exchange for lease liabilities
 Operating leases$1.3