XML 75 R14.htm IDEA: XBRL DOCUMENT

Leases

3 Months Ended

Mar. 31, 2020

The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from one to fifteen years, along with options that permit renewals for additional periods. The Company also leases certain equipment under non-cancelable operating leases, with initial terms typically ranging from one to five years. Minimum rent is expensed on a straight-line basis over the term of the lease.

The following table presents operating lease right-of-use assets and lease liabilities.



DOLLARS IN MILLIONS	Mar 31, 2020		Dec 31, 2019
Operating Lease Right-of-Use Assets	$	82.2	$	75.6
Operating Lease Liabilities	100.4		93.2

Lease expenses are primarily included in insurance expenses in the Condensed Consolidated Statement of Income. Additional information regarding the Company’s lease cost is presented below.



	Three Months Ended
(Dollars in Millions)	Mar 31, 2020		Mar 31, 2019
Lease Cost:
Amortization of Right-of-Use Assets - Finance Leases	$	0.1	$	0.2
Operating Lease Cost	5.6		5.7
Short-Term Lease Cost (1)	—		0.1
Total Expense	5.7		6.0
Less: Sublease Income (2)	—		0.1
Total Lease Cost	$	5.7	$	5.9

(1) - Leases with an initial term of twelve months or less are not recorded on the balance sheet.

(2) - Sublease income consists of rent from third parties of office space and is recognized as part of other income in the Condensed Consolidated Statements of Income.

Note 6 - Leases (continued)

Other Information on Operating Leases

Supplemental cash flow information related to the Company’s operating and finance leases for the three months ended March 31, 2020 and 2019 is as follows:



	Three Months Ended
(Dollars in Millions)	Mar 31, 2020		Mar 31, 2019
Operating Cash Flows from Operating Lease (Fixed Payments)	$	5.3	$	5.2
Operating Cash Flows from Operating Lease (Liability Reduction)	4.7		4.7
Financing Cash Flows from Finance Leases	0.1		0.2
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities	11.3		9.1

Significant judgments and assumptions for determining lease asset and liability at March 31, 2020 are presented below.



Weighted-average Remaining Lease Term - Finance Leases	1.4 years
Weighted-average Remaining Lease Term - Operating Leases	7.0 years
Weighted-average Discount Rate - Finance Leases	4.0	%
Weighted-average Discount Rate - Operating Leases	3.8	%

Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments.

Future minimum lease payments under finance and operating leases at March 31, 2020 are presented below.



(Dollars in Millions)	Finance Leases		Operating Leases
Remainder of 2020	$	0.2	$	16.1
2021	0.2		20.5
2022	—		18.9
2023	—		16.7
2024	—		11.0
2025 and Thereafter	—		32.3
Total Future Payments	$	0.4	$	115.5
Less Imputed Interest	—		15.1
Present Value of Minimum Lease Payments	$	0.4	$	100.4

Note 6 - Leases (continued)

Future minimum lease payments under finance and operating leases at December 31, 2019 are presented below.



(Dollars in Millions)	Finance Leases		Operating Leases
2020	$	0.3	$	20.5
2021	0.2		19.3
2022	—		17.0
2023	—		14.7
2024	—		8.3
2025 and Thereafter	—		28.1
Total Future Payments	$	0.5	$	107.9
Less Imputed Interest	—		14.7
Present Value of Minimum Lease Payments	$	0.5	$	93.2

Leases

The following table presents operating lease right-of-use assets and lease liabilities.



DOLLARS IN MILLIONS	Mar 31, 2020		Dec 31, 2019
Operating Lease Right-of-Use Assets	$	82.2	$	75.6
Operating Lease Liabilities	100.4		93.2

Lease expenses are primarily included in insurance expenses in the Condensed Consolidated Statement of Income. Additional information regarding the Company’s lease cost is presented below.



	Three Months Ended
(Dollars in Millions)	Mar 31, 2020		Mar 31, 2019
Lease Cost:
Amortization of Right-of-Use Assets - Finance Leases	$	0.1	$	0.2
Operating Lease Cost	5.6		5.7
Short-Term Lease Cost (1)	—		0.1
Total Expense	5.7		6.0
Less: Sublease Income (2)	—		0.1
Total Lease Cost	$	5.7	$	5.9

(1) - Leases with an initial term of twelve months or less are not recorded on the balance sheet.

(2) - Sublease income consists of rent from third parties of office space and is recognized as part of other income in the Condensed Consolidated Statements of Income.

Note 6 - Leases (continued)

Other Information on Operating Leases

Supplemental cash flow information related to the Company’s operating and finance leases for the three months ended March 31, 2020 and 2019 is as follows:



	Three Months Ended
(Dollars in Millions)	Mar 31, 2020		Mar 31, 2019
Operating Cash Flows from Operating Lease (Fixed Payments)	$	5.3	$	5.2
Operating Cash Flows from Operating Lease (Liability Reduction)	4.7		4.7
Financing Cash Flows from Finance Leases	0.1		0.2
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities	11.3		9.1

Significant judgments and assumptions for determining lease asset and liability at March 31, 2020 are presented below.



Weighted-average Remaining Lease Term - Finance Leases	1.4 years
Weighted-average Remaining Lease Term - Operating Leases	7.0 years
Weighted-average Discount Rate - Finance Leases	4.0	%
Weighted-average Discount Rate - Operating Leases	3.8	%

Future minimum lease payments under finance and operating leases at March 31, 2020 are presented below.



(Dollars in Millions)	Finance Leases		Operating Leases
Remainder of 2020	$	0.2	$	16.1
2021	0.2		20.5
2022	—		18.9
2023	—		16.7
2024	—		11.0
2025 and Thereafter	—		32.3
Total Future Payments	$	0.4	$	115.5
Less Imputed Interest	—		15.1
Present Value of Minimum Lease Payments	$	0.4	$	100.4

Note 6 - Leases (continued)

Future minimum lease payments under finance and operating leases at December 31, 2019 are presented below.



(Dollars in Millions)	Finance Leases		Operating Leases
2020	$	0.3	$	20.5
2021	0.2		19.3
2022	—		17.0
2023	—		14.7
2024	—		8.3
2025 and Thereafter	—		28.1
Total Future Payments	$	0.5	$	107.9
Less Imputed Interest	—		14.7
Present Value of Minimum Lease Payments	$	0.5	$	93.2