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Leases (Tables)
12 Months Ended
Dec. 31, 2020
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)202020192018
Finance lease expense
Amortization of right of use assets (1)
$6.3 $4.9 
Interest on lease liabilities (2)
2.5 3.3 
Capital lease expense (3)
$7.7 
Operating lease expense (4)
5.4 5.5 5.6 
Short-term lease expense (4)
0.3 0.6 1.5 
Total lease expense$14.5 $14.3 $14.8 
Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance/capital leases (5)
$2.5 $3.3 $7.7 
Operating cash flows from operating leases$6.7 $6.0 $6.5 
Financing cash flows from finance leases (5)
$6.3 $4.9 
Non-cash activities:
Right of use assets obtained in exchange for finance lease liabilities$22.8 $27.2 
Right of use assets obtained in exchange for operating lease liabilities$ $49.0 
Weighted-average remaining lease term – finance leases41.5 years31.5 years
Weighted-average remaining lease term – operating leases13.0 years12.9 years
Weighted-average discount rate – finance lease (6)
4.9 %6.7 %
Weighted average discount rate – operating leases (6)
3.4 %4.4 %

(1)    Amortization of right of use assets was included as a component of depreciation and amortization expense for the years ended December 31, 2020 and 2019.

(2)    Interest on lease liabilities was included as a component of interest expense for the years ended December 31, 2020 and 2019.

(3)    Capital lease expense related to the long-term PPA was included in cost of sales for the year ended December 31, 2018.

(4)    Operating and short-term lease expense were included as a component of operation and maintenance for the years ended December 31, 2020, 2019, and 2018.

(5)    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.

(6)    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 PPA 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)20202019
Long-term power purchase commitment
Under finance leases$140.3 $140.3 
Accumulated amortization(132.3)(126.6)
Total long-term power purchase commitment$8.0 $13.7 
Two Creeks land leases
Under finance leases$7.7 $7.7 
Accumulated amortization(0.2)(0.1)
Total Two Creeks land leases$7.5 $7.6 
Badger Hollow I land leases
Under finance leases$19.5 $19.5 
Accumulated amortization(0.6)(0.2)
Total Badger Hollow I land leases$18.9 $19.3 
Badger Hollow II land leases
Under finance leases$22.8 $— 
Accumulated amortization(0.2)— 
Total Badger Hollow II land leases$22.6 $— 
Total finance lease right of use assets$57.0 $40.6 
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, 2020, were as follows:
(in millions)Total Operating LeasesPower Purchase CommitmentTwo CreeksBadger Hollow IBadger Hollow IITotal Finance Leases
2021$4.5 $9.4 $0.2 $0.7 $0.3 $10.6 
20224.4 4.2 0.2 0.7 0.3 5.4 
20234.5 — 0.2 0.7 0.7 1.6 
20244.3 — 0.2 0.7 0.7 1.6 
20253.8 — 0.2 0.7 0.7 1.6 
Thereafter24.5 — 22.6 52.7 55.0 130.3 
Total minimum lease payments46.0 13.6 23.6 56.2 57.7 151.1 
Less: Interest(10.2)(1.5)(15.7)(35.9)(34.6)(87.7)
Present value of minimum lease payments35.8 12.1 7.9 20.3 23.1 63.4 
Less: Short-term lease liabilities(3.4)(8.1)— — — (8.1)
Long-term lease liabilities$32.4 $4.0 $7.9 $20.3 $23.1 $55.3