LEASES (Tables)
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3 Months Ended |
Mar. 31, 2020 |
Leases [Abstract] |
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Assets and Liabilities, Lessee |
| | | | | | | | | | | | | | | | | | | | | | | Classification | | March 31, 2020 | | December 31, 2019 | Assets | | | | | | | Operating right-of-use assets | | Right-of-use asset | | $ | 169.9 | | | $ | 175.4 | | Finance right-of-use assets | | Property, Plant and Equipment | | 2.1 | | | 2.4 | | Total right-of-use assets | | | | 172.0 | | | 177.8 | | | | | | | | | Liabilities | | | | | | | Current | | | | | | | Operating lease liabilities | | Other accrued liabilities | | $ | 45.4 | | | $ | 45.7 | | Finance lease liabilities | | Other accrued liabilities | | 0.9 | | | 1.0 | | Total current lease liabilities | | | | 46.3 | | | 46.7 | | | | | | | | | Noncurrent | | | | | | | Operating lease liabilities | | Long-term operating lease liability | | $ | 137.7 | | | $ | 143.3 | | Finance lease liabilities | | Long-term debt | | 1.3 | | | 1.4 | | Total noncurrent lease liabilities | | | | $ | 139.0 | | | $ | 144.7 | | | | | | | | | Total lease liability | | | | $ | 185.3 | | | $ | 191.4 | |
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Lease Cost |
The table below shows the lease income and expenses recorded in the Consolidated Statement of Operations incurred during the three months ended March 31, 2020 and 2019. | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended March 31, | | Three months ended March 31, | Lease Costs | | Classification | | 2020 | | 2019 | Operating lease cost (1) | | Selling, general and administrative expenses | | $ | 16.0 | | | $ | 16.8 | | Finance lease cost | | | | | | | Amortization of right-of-use assets | | Selling, general and administrative expenses | | .3 | | | .4 | | Interest on lease liabilities | | Interest Expense | | .1 | | | .1 | | Short-term leases costs | | Selling, general and administrative expenses | | .4 | | | 1.1 | | Sublease income (2) | | Selling, general and administrative expenses | | (4.1) | | | (3.2) | | Net lease cost | | | | $ | 12.7 | | | $ | 15.2 | |
(1) Includes variable lease costs which are immaterial. These are presented in selling, general and administrative expenses in our Consolidated Statements of Operations. (2) Sublease portfolio consists of the sublease of our previous principal executive office located at 777 Third Avenue, New York, NY.
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Operating Lease Maturity Analysis |
The maturity analysis of the finance and operating lease liabilities is reflected below. This table also reflects the reconciliation of the undiscounted cash flows to the discounted finance and operating lease liabilities as recognized in the March 31, 2020 Consolidated Balance Sheet: | | | | | | | | | | | | | | | | | | | | | Maturity of Lease Liabilities | | Operating Leases | | Finance Leases | | Total | 2020 | | $ | 45.0 | | | $ | .8 | | | $ | 45.8 | | 2021 | | 51.7 | | | .9 | | | 52.6 | | 2022 | | 43.8 | | | .6 | | | 44.4 | | 2023 | | 29.3 | | | .1 | | | 29.4 | | 2024 | | 21.0 | | | — | | | 21.0 | | 2025 | | 18.0 | | | — | | | 18.0 | | Thereafter | | 11.6 | | | — | | | 11.6 | | Total lease payments | | $ | 220.4 | | | $ | 2.4 | | | $ | 222.8 | | Less: Interest | | (37.3) | | | (.2) | | | (37.5) | | Present value of lease liabilities | | $ | 183.1 | | | $ | 2.2 | | | $ | 185.3 | |
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Finance Lease Maturity Analysis |
The maturity analysis of the finance and operating lease liabilities is reflected below. This table also reflects the reconciliation of the undiscounted cash flows to the discounted finance and operating lease liabilities as recognized in the March 31, 2020 Consolidated Balance Sheet: | | | | | | | | | | | | | | | | | | | | | Maturity of Lease Liabilities | | Operating Leases | | Finance Leases | | Total | 2020 | | $ | 45.0 | | | $ | .8 | | | $ | 45.8 | | 2021 | | 51.7 | | | .9 | | | 52.6 | | 2022 | | 43.8 | | | .6 | | | 44.4 | | 2023 | | 29.3 | | | .1 | | | 29.4 | | 2024 | | 21.0 | | | — | | | 21.0 | | 2025 | | 18.0 | | | — | | | 18.0 | | Thereafter | | 11.6 | | | — | | | 11.6 | | Total lease payments | | $ | 220.4 | | | $ | 2.4 | | | $ | 222.8 | | Less: Interest | | (37.3) | | | (.2) | | | (37.5) | | Present value of lease liabilities | | $ | 183.1 | | | $ | 2.2 | | | $ | 185.3 | |
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Operating Lease by Due Dates |
At December 31, 2019 our operating and finance lease obligations by due dates were as follows:
| | | | | | | | | | | | | | | | | | | | | Maturity of Lease Liabilities | | Operating Leases | | Finance Leases | | Total | 2020 | | 59.7 | | | 1.2 | | | 60.9 | | 2021 | | 50.5 | | | .9 | | | 51.4 | | 2022 | | 42.4 | | | .6 | | | 43.0 | | 2023 | | 28.3 | | | .1 | | | 28.4 | | 2024 | | 20.2 | | | — | | | 20.2 | | Thereafter | | 30.1 | | | — | | | 30.1 | | Total lease payments | | $ | 231.2 | | | $ | 2.8 | | | $ | 234.0 | | Less: Interest | | 42.2 | | | .4 | | | 42.6 | | Present value of lease liabilities | | $ | 189.0 | | | $ | 2.4 | | | $ | 191.4 | |
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Financing Lease by Due Dates |
At December 31, 2019 our operating and finance lease obligations by due dates were as follows:
| | | | | | | | | | | | | | | | | | | | | Maturity of Lease Liabilities | | Operating Leases | | Finance Leases | | Total | 2020 | | 59.7 | | | 1.2 | | | 60.9 | | 2021 | | 50.5 | | | .9 | | | 51.4 | | 2022 | | 42.4 | | | .6 | | | 43.0 | | 2023 | | 28.3 | | | .1 | | | 28.4 | | 2024 | | 20.2 | | | — | | | 20.2 | | Thereafter | | 30.1 | | | — | | | 30.1 | | Total lease payments | | $ | 231.2 | | | $ | 2.8 | | | $ | 234.0 | | Less: Interest | | 42.2 | | | .4 | | | 42.6 | | Present value of lease liabilities | | $ | 189.0 | | | $ | 2.4 | | | $ | 191.4 | |
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Lease Terms |
The Company has calculated the weighted-average remaining lease term, presented in years below, and the weighted-average discount rate for our operating and finance lease population. As noted in our lease accounting policy (See Note 1, Accounting Policies to the Consolidated Financial Statements contained herein), the Company uses the incremental borrowing rate as the lease discount rate. | | | | | | | | | | | | Lease Term and Discount Rate | | March 31, 2020 | December 31, 2019 | Weighted-average remaining lease term (years) | | | | Operating leases | | 4.6 | 4.8 | Finance leases | | 2.5 | 2.6 | Weighted-average discount rate | | | | Operating leases | | 8.2 | % | 8.5 | % | Finance leases | | 10.7 | % | 11.2 | % |
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Cash Flow Classification |
The table below sets out the classification of lease payments in the Consolidated Statement of Cash Flows. The right-of-use assets obtained in exchange for new finance and operating lease liabilities represent the new operating and finance leases entered into during the three and nine months ended March 31, 2020. | | | | | | | | | | | | | | | Other Information | | Three months ended March 31, 2020 | | Three months ended March 31, 2019 | Operating cash flows from operating leases | | $ | 16.1 | | | $ | 16.4 | | Financing cash flows from finance leases | | .3 | | | .3 | | Cash paid for amounts included in measurement of liabilities | | $ | 16.4 | | | $ | 16.7 | | | | | | | Right-of-use assets obtained in exchange for new finance liabilities | | $ | .1 | | | $ | .7 | | Right-of-use assets obtained in exchange for new operating liabilities | | $ | 11.9 | | | $ | 12.8 | |
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