Leases

12 Months Ended

Dec. 31, 2020

We lease facilities, vehicles, CompuSafe® units, computers and other equipment under long-term operating and financing leases with varying terms. Most of the operating leases contain renewal and/or purchase options at our sole discretion. The renewal periods differ by asset class and by country and are included in our determination of lease term if we determine we are reasonably certain to exercise the option.

We have taken the component election for all material asset categories, except CompuSafe units. This election allows us to account for lease components (e.g., fixed payments or variable payments that depend on a rate that can be determined at commencement, including rent for the right to use the asset) together with nonlease components (e.g., other fixed payments that deliver a good or service including common-area maintenance costs) in the calculation of the right-of-use asset and corresponding liability. Variable costs, such as inflation adjusted payments for facilities, or nonlease components that vary periodically (included as part of the component election), are expensed as incurred.

Our leases do not contain any material residual value guarantees or material restrictive covenants.

The components of lease assets and liabilities were as follows:


		December 31,
(In millions)	Balance sheet classification	2020		2019
Assets:
Operating lease assets	Right-of-use assets, net	$	322.0	$	270.3
Finance lease assets	Property and equipment, net	169.5		162.5
Total leased assets		$	491.5	$	432.8

Liabilities:
Current:
Operating	Accrued liabilities	$	77.2	$	65.9
Financing	Current maturities of long-term debt	37.5		32.5
Noncurrent:
Operating	Lease liabilities	267.2		218.4
Financing	Long-term debt	113.9		117.0
Total lease liabilities		$	495.8	$	433.8

The components of lease expense were as follows:


	Years Ended December 31,
(In millions)	2020		2019

Operating lease cost(a)	$	131.4	$	97.2
Short-term lease cost	18.9		27.2
Finance lease cost:
Amortization of related assets	28.2		27.4
Interest on related liabilities	7.1		7.4
Total lease cost	$	185.6	$	159.2

(a)Includes variable lease costs, which are immaterial.

Net rent expense and amortization expense and interest on finance leases included in continuing operations was $151.3 million for the twelve months ended December 31, 2018.

Other information related to leases was as follows:


	Years Ended December 31,
(In millions, except for lease term and discount rate)	2020			2019

Supplemental Cash Flows Information

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	100.4		$	96.0
Operating cash flows from finance leases	7.1			7.4
Financing cash flows from finance leases	34.8			29.4
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	123.6			56.3
Finance leases	37.9			59.7

Weighted Average Remaining Lease Term

Operating leases	7.2 years			7.2 years
Finance leases	4.5 years			5.2 years

Weighted Average Discount Rate

Operating leases	6.6		%	6.9		%
Finance leases	4.9		%	4.9		%

As of December 31, 2020, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:


(In millions)	Facilities		Vehicles		Other	Total

2021	$	68.1	9.2		18.7	96.0
2022	56.2		5.7		12.9	74.8
2023	47.5		3.3		8.6	59.4
2024	39.9		1.4		5.4	46.7
2025	31.0		0.7		1.3	33.0
Later years	132.6		0.8		—	133.4
Total Lease Payments	$	375.3	21.1		46.9	443.3
Less: Interest	93.8		1.8		3.3	98.9
Present value of lease liabilities	$	281.5	$	19.3	43.6	344.4

As of December 31, 2020, minimum repayments of long-term debt under financing leases were as follows:


(In millions)

2021	$	37.5
2022	36.2
2023	28.8
2024	22.3
2025	14.4
Later years	12.2
Total	$	151.4