Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Leases

Supplemental consolidated balance sheet information for leases at December 31, 2019, is as follows (in millions):

	Classification
Assets
Operating leases	Operating lease assets, net	$	615.2
Finance leases	Property, plant and equipment, net (1)	15.2
Total lease assets		$	630.4
Liabilities
Current
Operating leases	Other accrued liabilities	$	132.4
Finance leases	Short-term debt and current portion of long-term debt	3.4
Noncurrent
Operating leases	Long-term operating lease liabilities	541.4
Finance leases	Long-term debt	9.5
Total lease liabilities		$	686.7

(1) Net of accumulated depreciation of $8.4 million.

Components of lease expense for the year ended December 31, 2019, is as follows (in millions):

Operating lease cost:
Operating lease cost (1)	$	207.1
Variable lease costs (2)	25.5
Finance lease cost
Amortization of leased assets	4.6
Interest on lease liabilities	0.5

(1) Includes short-term leases, which are immaterial.

(2) Consists primarily of additional payments for non-lease components, such as maintenance costs, payments of taxes and additional rent based on a level of the Company’s retail store sales.

Remaining lease term and discount rates at December 31, 2019, are as follows:

Weighted-average remaining lease term (years):
Operating leases	7
Finance leases	3
Weighted-average discount rate:
Operating leases	4.3	%
Finance leases	3.5	%

Supplemental cash flow information related to leases for the year ended December 31, 2019, is as follows (in millions):

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	201.3
Operating cash flows from finance leases	0.6
Financing cash flows from finance leases	3.6
Right of use assets obtained in exchange for lease liabilities:
Operating leases	130.0
Finance leases	6.7

Maturities of lease liabilities for continuing operations under the new lease standard (see Footnote 1) at December 31, 2019, are as follows (in millions):

	Operating Leases			Finance Leases
2020	$	168.3		$	4.3
2021	138.9			4.2
2022	115.0			3.3
2023	87.0			1.5
2024	71.0			0.2
Thereafter	214.8			0.2
Total lease payments	795.0			13.7
Less: imputed interest	(121.2		)	(0.8		)
Present value of lease liabilities	$	673.8		$	12.9

See Footnote 3 for information on lease liabilities included in discontinued operations and held for sale.

Future minimum rental payments for operating leases, prior to the adoption of the new lease standard, with initial or remaining terms in excess of one year at December 31, 2018 for the Company are as follows (in millions):

2019	$	180.0
2020	144.0
2021	117.8
2022	97.7
2023	74.0
Thereafter	263.9
	$	877.4

Rent expense under operating leases for continuing operations was $223 million, $227 million and $226 million in 2019, 2018 and 2017.

Leases

Leases

Supplemental consolidated balance sheet information for leases at December 31, 2019, is as follows (in millions):

	Classification
Assets
Operating leases	Operating lease assets, net	$	615.2
Finance leases	Property, plant and equipment, net (1)	15.2
Total lease assets		$	630.4
Liabilities
Current
Operating leases	Other accrued liabilities	$	132.4
Finance leases	Short-term debt and current portion of long-term debt	3.4
Noncurrent
Operating leases	Long-term operating lease liabilities	541.4
Finance leases	Long-term debt	9.5
Total lease liabilities		$	686.7

(1) Net of accumulated depreciation of $8.4 million.

Components of lease expense for the year ended December 31, 2019, is as follows (in millions):

Operating lease cost:
Operating lease cost (1)	$	207.1
Variable lease costs (2)	25.5
Finance lease cost
Amortization of leased assets	4.6
Interest on lease liabilities	0.5

(1) Includes short-term leases, which are immaterial.

(2) Consists primarily of additional payments for non-lease components, such as maintenance costs, payments of taxes and additional rent based on a level of the Company’s retail store sales.

Remaining lease term and discount rates at December 31, 2019, are as follows:

Weighted-average remaining lease term (years):
Operating leases	7
Finance leases	3
Weighted-average discount rate:
Operating leases	4.3	%
Finance leases	3.5	%

Supplemental cash flow information related to leases for the year ended December 31, 2019, is as follows (in millions):

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	201.3
Operating cash flows from finance leases	0.6
Financing cash flows from finance leases	3.6
Right of use assets obtained in exchange for lease liabilities:
Operating leases	130.0
Finance leases	6.7

Maturities of lease liabilities for continuing operations under the new lease standard (see Footnote 1) at December 31, 2019, are as follows (in millions):

	Operating Leases			Finance Leases
2020	$	168.3		$	4.3
2021	138.9			4.2
2022	115.0			3.3
2023	87.0			1.5
2024	71.0			0.2
Thereafter	214.8			0.2
Total lease payments	795.0			13.7
Less: imputed interest	(121.2		)	(0.8		)
Present value of lease liabilities	$	673.8		$	12.9

See Footnote 3 for information on lease liabilities included in discontinued operations and held for sale.

Future minimum rental payments for operating leases, prior to the adoption of the new lease standard, with initial or remaining terms in excess of one year at December 31, 2018 for the Company are as follows (in millions):

2019	$	180.0
2020	144.0
2021	117.8
2022	97.7
2023	74.0
Thereafter	263.9
	$	877.4

Rent expense under operating leases for continuing operations was $223 million, $227 million and $226 million in 2019, 2018 and 2017.