XML 70 R54.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Leases (Tables)
 12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Schedule of lease expense and supplemental cash flow information for leases
The components of lease expense and supplemental cash flow information related to our leases for the years ended December 31 are as follows:
(in millions)
 
2019
 
2018
 
2017
Finance/capital lease expense (1)
 
$
8.2

 
$
7.7

 
$
7.2

Operating lease expense (2)
 
5.5

 
5.6

 
6.4

Short-term lease expense (2)
 
0.6

 
1.5

 
0.8

Total lease expense
 
$
14.3

 
$
14.8

 
$
14.4

 
 
 
 
 
 
 
Other information
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash paid for amounts included in the measurement of lease liabilities
 
 
 
 
 
 
   Operating cash flows from finance/capital leases (3)
 
$
3.3

 
$
7.7

 
$
7.2

   Operating cash flows from operating leases
 
$
6.0

 
$
6.5

 
$
7.1

   Financing cash flows from finance leases (3)
 
$
4.9

 


 


 
 
 
 
 
 
 
Non-cash activities:
 


 
 
 
 
Right of use assets obtained in exchange for finance lease liabilities
 
$
27.2

 
 
 
 
Right of use assets obtained in exchange for operating lease liabilities
 
$
49.0

 
 
 
 
 
 
 
 
 
 
 
Weighted-average remaining lease term – finance leases
 
31.5 years

 
 
 
 
Weighted-average remaining lease term – operating leases
 
12.9 years

 
 
 
 
 
 
 
 
 
 
 
Weighted-average discount rate – finance lease (4)
 
6.7
%
 
 
 
 
Weighted average discount rate – operating leases (4)
 
4.4
%
 
 
 
 

(1) 
For the year ended December 31, 2019, finance lease expense included amortization of right of use assets in the amount of $4.9 million (included in depreciation and amortization expense) and interest on lease liabilities of $3.3 million (included in interest expense). For the years ended December 31, 2018 and 2017, total capital lease expense related to the long-term power purchase agreement was included in cost of sales.

(2) 
Operating and short-term lease expense were included as a component of operation and maintenance for the years ended December 31, 2019, 2018, and 2017.

(3) 
Prior to our adoption of Topic 842 on January 1, 2019, all cash flows related to the finance lease were recorded as a component of operating cash flows.

(4) 
Because our operating leases do not provide an implicit rate of return, we used the fully collateralized incremental borrowing rates based upon information available for similarly rated companies in determining the present value of lease payments for our operating leases. For our power purchase agreement that meets the definition of a finance lease, the rate implicit in the lease was readily determinable. For our solar land leases that are finance leases, we used the fully collateralized incremental borrowing rates based upon information available for similarly rated companies in determining the present value of lease payments.
Schedule of finance and operating lease right of use asset
The following table summarizes our finance lease right of use assets, which were included in property, plant and equipment on our balance sheets at December 31:
(in millions)
 
2019
 
2018
Long-term power purchase commitment
 
 
 
 
Under finance/capital lease
 
$
140.3

 
$
140.3

Accumulated amortization
 
(126.6
)
 
(120.9
)
Total long-term power purchase commitment
 
$
13.7

 
$
19.4

 
 
 
 
 
Two Creeks land leases
 
 
 
 
Under finance leases
 
$
7.7

 
$
—

Accumulated amortization
 
(0.1
)
 
—

Total Two Creeks land leases
 
$
7.6

 
$
—

 
 
 
 
 
Badger Hollow I land leases
 
 
 
 
Under finance leases
 
$
19.5

 
$
—

Accumulated amortization
 
(0.2
)
 
—

Total Badger Hollow I land leases
 
$
19.3

 
$
—

 
 
 
 
 
Total finance lease right of use assets/capital lease asset
 
$
40.6

 
$
19.4
Schedule of future minimum lease payments for operating and finance leases
Future minimum lease payments under our operating leases and our finance leases, and the present value of our net minimum lease payments as of December 31, 2019, were as follows:
(in millions)
 
Total Operating Leases
 
Power Purchase Commitment
 
Two Creeks
 
Badger Hollow I
 
Total Finance Leases
2020
 
$
6.8

 
$
8.8

 
$
0.2

 
$
0.3

 
$
9.3

2021
 
4.8

 
9.4

 
0.2

 
0.7

 
10.3

2022
 
4.8

 
4.2

 
0.2

 
0.7

 
5.1

2023
 
4.9

 
—

 
0.2

 
0.7

 
0.9

2024
 
4.8

 
—

 
0.2

 
0.7

 
0.9

Thereafter
 
30.1

 
—

 
22.8

 
53.4

 
76.2

Total minimum lease payments
 
56.2

 
22.4

 
23.8

 
56.5

 
102.7

Less: Interest
 
(14.8
)
 
(4.0
)
 
(16.1
)
 
(36.7
)
 
(56.8
)
Present value of minimum lease payments
 
41.4

 
18.4

 
7.7

 
19.8

 
45.9

Less: Short-term lease liabilities
 
(4.4
)
 
(6.3
)
 
—

 
—

 
(6.3
)
Long-term lease liabilities
 
$
37.0

 
$
12.1

 
$
7.7

 
$
19.8

 
$
39.6