Operating Leases

12 Months Ended

Dec. 31, 2018

Note 8. Operating Leases

We lease space under non-cancelable operating leases for several distribution centers, several manufacturing locations, and certain branch locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Any such terms are recognized as rent expense over the term of the lease. Further, the leases do not contain contingent rent provisions. The net book value of leasehold improvements at December 31, 2018 was $2.3. We lease certain semi-tractors and pick-ups under operating leases. Our pick-up leases typically have a non-cancelable lease term of one year, with renewal options for up to 72 months. Our average lease term for pick-ups is typically 39 months to 45 months. Future minimum lease payments for all operating leases are as follows:



	Leased Facilities and Equipment		Leased Vehicles	Total
2019	$	84.1	40.0	124.1
2020	69.1		25.5	94.6
2021	42.8		10.9	53.7
2022	21.8		1.9	23.7
2023	9.7		—	9.7
2024 and thereafter	3.7		—	3.7
Total minimum lease payments	$	231.2	78.3	309.5

Rent expense under all operating leases was as follows:



	Leased Facilities and Equipment		Leased Vehicles	Total
2018	$	110.7	47.5	158.2
2017	$	109.5	45.8	155.3
2016	$	110.1	42.7	152.8

Certain operating leases for pick-up trucks contain residual value guarantee provisions which would generally become due at the expiration of the operating lease agreement if the fair value of the leased vehicles is less than the guaranteed residual value. The aggregate residual value guarantee related to these leases was approximately $80.8. We believe the likelihood of funding the guarantee obligation under any provision of the operating lease agreements is remote. To the extent our fleet contains vehicles we estimate will settle at a gain, such gains on these vehicles will be recognized when we sell the vehicle.