LEASES

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

LEASES

NOTE 5 – LEASES

The Company has operating leases for transfer sites, processing facilities, communication centers, corporate and regional offices, vehicles, and certain equipment.

The components of net lease cost were as follows:

In millions
	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost	$	28.7	$	57.9
Finance lease cost
Amortization of leased assets		0.5		1.6
Interest on lease liabilities		0.2		0.4
Net lease cost	$	29.4	$	59.9

Short-term lease cost, variable lease cost and sublease income were not significant during the period.

Supplemental cash flow information related to leases was as follows:

In millions
	Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	59.5
Operating cash flows from finance leases		0.4
Financing cash flows from finance leases		1.3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		82.8
Finance leases		-

Finance lease assets, net of accumulated amortization, were $20.9 million as of June 30, 2019 and are included in Property, Plant and Equipment, net on the Condensed Consolidated Balance Sheet.

Information regarding lease terms and discount rates is as follows:

In millions
	June 30, 2019
Weighted average remaining lease term (years):
Operating leases		6.7
Finance leases		6.1
Weighted average discount rate:
Operating leases		4.0	%
Finance leases		5.0	%

Maturities of lease liabilities as of June 30, 2019, were as follows:

In millions
	Operating leases		Finance leases
2019	$	55.1	$	3.0
2020		95.8		5.9
2021		78.8		2.5
2022		60.9		2.3
2023 and thereafter		171.5		7.9
Total lease payments		462.1		21.6
Less: Interest		55.4		3.1
Present value of lease liabilities	$	406.7	$	18.5

As of June 30, 2019, the Company had $12.0 million of additional operating leases, primarily related to buildings, for which the underlying operating lease had not yet commenced. These operating leases are expected to commence in fiscal years 2019 and 2020 with lease terms of 1 to 15 years.