NOTE 12. LEASES

Our lease commitments are primarily for railcars, but also include logistics, manufacturing, storage, real estate and information technology assets. Our leases have remaining lease terms of up to 96 years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases within one year.

The amounts for leases included in our condensed balance sheet include:



		March 31, 2019
Assets:	Balance sheet location:	($ in millions)
Operating	Operating lease assets, net	$	275.1
Finance	Property, plant and equipment, less accumulated depreciation⁽¹⁾	5.9
Total lease assets		$	281.0
Liabilities:
Current
Operating	Current operating lease liabilities	$	69.4
Finance	Current installments of long-term debt	1.1
Long-term
Operating	Operating lease liabilities	206.0
Finance	Long-term debt	4.7
Total lease liabilities		$	281.2


(1)	As of March 31, 2019, assets recorded under finance leases were $9.4 million and accumulated depreciation associated with finance leases was $3.5 million.

The components of lease expense are recorded to cost of goods sold and selling and administration expenses in the condensed statement of operations, excluding interest on finance lease liabilities which is recorded to interest expense. The components of lease expense were as follows:



	Three Months Ended March 31, 2019
Lease expense:	($ in millions)
Operating	$	22.2
Other operating lease expense⁽¹⁾	6.9
Finance:
Depreciation of leased assets	0.3
Interest on lease liabilities	0.1
Total lease expense	$	29.5


(1)	Includes costs associated with short-term leases and variable lease expenses.

The maturities of lease liabilities were as follows:



	March 31, 2019
	Operating leases			Finance leases			Total
	($ in millions)
2019	$	59.7		$	1.0		$	60.7
2020	62.9			2.1			65.0
2021	45.6			0.8			46.4
2022	32.3			0.8			33.1
2023	23.8			0.6			24.4
Thereafter	101.1			1.0			102.1
Total lease payments	325.4			6.3			331.7
Less: Imputed interest⁽¹⁾	(50.0		)	(0.5		)	(50.5		)
Present value of lease liabilities	$	275.4		$	5.8		$	281.2


(1)	Calculated using the discount rate for each lease.

As previously disclosed in our 2018 Annual Report on Form 10-K and under ASC 840, the previous lease accounting standard, future minimum lease payments for non-cancelable operating leases were expected to be as follows:



	December 31, 2018
	($ in millions)
2019	$	82.2
2020	61.4
2021	44.2
2022	31.8
2023	23.2
Thereafter	102.6
Total lease payments	$	345.4

Other information related to leases was as follows:



	Three Months Ended March 31, 2019
Supplemental cash flows information:	($ in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	22.0
Operating cash flows from finance leases	0.1
Financing cash flows from finance leases	0.2
Non-cash increase in lease assets and lease liabilities:
Operating leases	$	3.6
Finance leases	1.9
Weighted-average remaining lease term:	March 31, 2019
Operating leases	9.3 years
Finance leases	3.8 years
Weighted-average discount rate:
Operating leases	3.33		%
Finance leases	3.34		%

As of March 31, 2019, we have additional operating leases for office space that have not yet commenced of approximately $20 million which are expected to commence during the second and third quarters of 2019 with lease terms of approximately 10 years. We also have additional operating leases for railcars that have not yet commenced of approximately $9 million which are expected to commence during the second quarter of 2019 with lease terms between 5 years and 12 years.