We enter into operating and finance leases for certain manufacturing plants, warehouses, equipment and automobiles. Our leases have remaining lease terms of 1 to 17 years. Several leases include options for us to purchase leased items at fair value or renew for up to 5 years, or multiple 5-year renewal periods. Some of our leases include early termination options. We consider all of these options in determining the lease term used to establish our right-of-use (“ROU”) assets and lease liabilities when it is reasonably certain that we will exercise that option. Our lease agreements do not contain any residual value guarantees or material restrictive covenants.

We have lease agreements with lease and nonlease components, which we have elected to combine to determine the ROU assets and lease liabilities. Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize lease expense for these leases on a straight-line basis over the lease term. Short-term lease expense and variable lease cost was not material for the three and nine months ended September 30, 2020 and 2019.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate (“IBR”) based on information that is available at the lease commencement date to compute the present value of lease payments. Relevant information used in determining

the IBR includes the transactional currency of the lease and the lease term. We used the IBR on January 1, 2019 for operating leases that commenced prior to that date. As of September 30, 2020, we did not have any material leases that had not yet commenced.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Operating lease cost	$	0.7	$	1.7	$	4.2	$	5.0
Finance lease cost
Amortization of leased assets		1.3		-		1.3		-
Interest on lease liabilities		0.4		-		0.4		-

The following table presents supplemental cash flow information related to our leases:

	Nine Months Ended
	September 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	4.2	$	5.0
Operating cash flows from finance leases		0.4		-
Financing cash flows from finance leases		1.2		-
ROU assets obtained in exchange for lease liabilities
Operating leases ⁽¹⁾	$	4.1	$	39.4
Finance leases		7.5		-

The following table presents the weighted average assumptions used to compute our ROU assets and lease liabilities:

	September 30, 2020			December 31, 2019
Weighted average remaining lease term (in years)
Operating leases	6.9			8.6
Finance leases	11.1				-
Weighted average discount rate
Operating leases		4.1	%		4.4	%
Finance leases		3.7	%		-

Undiscounted future minimum lease payments as of September 30, 2020, by year and in the aggregate, having non-cancelable lease terms in excess of one year are as follows:

	Operating Leases			Finance Leases
Maturity of lease liabilities
2020 ⁽¹⁾	$	1.3		$	0.6
2021		4.9			2.6
2022		4.0			2.6
2023		3.1			2.5
2024		2.2			2.4
Thereafter		7.7			14.8
Total lease payments		23.2			25.5
Less interest		(3.2	)		(4.9	)
Present value of lease liabilities	$	20.0		$	20.6