LEASES

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

LEASES

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:

		June 30, 2019
Lease assets:	Balance sheet location:	($ in millions)
Operating	Operating lease assets, net	$	295.8
Finance	Property, plant and equipment, less accumulated depreciation(1)	5.6
Total lease assets		$	301.4
Lease liabilities:
Current
Operating	Current operating lease liabilities	$	71.4
Finance	Current installments of long-term debt	1.1
Long-term
Operating	Operating lease liabilities	229.3
Finance	Long-term debt	4.4
Total lease liabilities		$	306.2

(1) As of June 30, 2019, assets recorded under finance leases were $9.4 million and accumulated depreciation associated with finance leases was $3.8 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 June 30, 2019		Six Months Ended June 30, 2019
Lease expense:	($ in millions)
Operating	$	23.0	$	45.2
Other operating lease expense(1)	4.6		11.5
Finance:
Depreciation of leased assets	0.3		0.6
Interest on lease liabilities	—		0.1
Total lease expense	$	27.9	$	57.4

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

The maturities of lease liabilities were as follows:

	June 30, 2019
	Operating leases			Finance leases			Total
	($ in millions)
2019	$	42.1		$	0.7		$	42.8
2020	71.3			2.1			73.4
2021	53.0			0.8			53.8
2022	38.0			0.8			38.8
2023	29.3			0.6			29.9
Thereafter	120.6			1.0			121.6
Total lease payments	354.3			6.0			360.3
Less: Imputed interest(1)	(53.6		)	(0.5		)	(54.1		)
Present value of lease liabilities	$	300.7		$	5.5		$	306.2

(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:

	Six Months Ended June 30, 2019
Supplemental cash flows information:	($ in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	44.9
Operating cash flows from finance leases	0.1
Financing cash flows from finance leases	0.6
Non-cash increase in lease assets and lease liabilities:
Operating leases	$	48.5
Finance leases	1.9
Weighted-average remaining lease term:	June 30, 2019
Operating leases	9.3 years
Finance leases	3.6 years
Weighted-average discount rate:
Operating leases	3.29		%
Finance leases	3.35		%