Annual report pursuant to Section 13 and 15(d)

Leases

v3.20.4
Leases
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
LEASES LEASES
Our leases have remaining lease terms of one month to nine years. Many leases include one or more options to renew, with renewal terms that can extend the lease term from one month to ten years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table summarizes components of lease expense:
Year Ended
December 31, 2020 December 31, 2019
Finance lease cost $ 0.3  $ 0.3 
Operating lease cost 4.4  4.1 
Short-term lease cost 1.0  1.4 
Sublease income (0.1) (1.4)
Total lease cost $ 5.6  $ 4.4 

The following table summarizes supplemental balance sheet information related to leases:
Lease Category Balance Sheet Classification December 31, 2020 December 31, 2019
Assets
   Operating lease assets Operating lease assets $ 8.5  $ 6.0 
   Finance lease assets Property, plant and equipment, net 1.0  0.6 
Total lease assets $ 9.5  $ 6.6 
Liabilities
   Current
      Operating lease liabilities Accounts payable and accrued expenses $ 2.7  $ 3.3 
      Finance lease liabilities Current installments of long-term debt 0.3  0.2 
   Noncurrent
      Operating lease liabilities Noncurrent operating lease liabilities 5.8  2.7 
      Finance lease liabilities Long-term debt, net of unamortized debt issuance costs 0.7  0.3 
Total lease liabilities $ 9.5  $ 6.5 
The following table summarizes supplemental cash flow information related to leases:
Year Ended
December 31, 2020 December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 4.4  $ 4.1 
Financing cash flows from finance leases 0.3  0.3 
Non-cash lease liability activity (a):
Lease assets obtained in exchange for new operating lease liabilities 6.9 10.1
Lease assets obtained in exchange for new finance lease liabilities 0.7 0.9
(a) 2019 includes leased assets of $9.2 million that were recorded on January 1, 2019 upon adoption of the new leasing standard.

The following table summarized weighted average remaining lease term and weighted average discount rate:
December 31, 2020
Weighted average remaining lease term - Operating leases (in years) 4.1
Weighted average remaining lease term - Finance leases (in years) 3.0
Weighted average discount rate - Operating leases (%) 9.5  %
Weighted average discount rate - Finances leases (%) 7.1  %

The following table provides future minimum payments at December 31, 2020, by year and in the aggregate, for leases having non-cancelable lease terms in excess of one year:
Operating Leases Finance Leases
2021 $ 3.1  $ 0.4 
2022 1.9  0.3 
2023 1.7  0.2 
2024 1.6  0.1 
2025 1.2  — 
Thereafter 0.9  — 
Total lease payments 10.4  1.0 
Less: Unamortized interest 1.9   
Total $ 8.5  $ 1.0 

As of December 31, 2020, we have additional operating leases for our new headquarters and tech center, that have not yet commenced with an estimated initial ROU asset of $11.6 million. These operating leases are expected to commence during first-half fiscal year 2021 with lease terms of 10 years.
LEASES LEASES
Our leases have remaining lease terms of one month to nine years. Many leases include one or more options to renew, with renewal terms that can extend the lease term from one month to ten years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table summarizes components of lease expense:
Year Ended
December 31, 2020 December 31, 2019
Finance lease cost $ 0.3  $ 0.3 
Operating lease cost 4.4  4.1 
Short-term lease cost 1.0  1.4 
Sublease income (0.1) (1.4)
Total lease cost $ 5.6  $ 4.4 

The following table summarizes supplemental balance sheet information related to leases:
Lease Category Balance Sheet Classification December 31, 2020 December 31, 2019
Assets
   Operating lease assets Operating lease assets $ 8.5  $ 6.0 
   Finance lease assets Property, plant and equipment, net 1.0  0.6 
Total lease assets $ 9.5  $ 6.6 
Liabilities
   Current
      Operating lease liabilities Accounts payable and accrued expenses $ 2.7  $ 3.3 
      Finance lease liabilities Current installments of long-term debt 0.3  0.2 
   Noncurrent
      Operating lease liabilities Noncurrent operating lease liabilities 5.8  2.7 
      Finance lease liabilities Long-term debt, net of unamortized debt issuance costs 0.7  0.3 
Total lease liabilities $ 9.5  $ 6.5 
The following table summarizes supplemental cash flow information related to leases:
Year Ended
December 31, 2020 December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 4.4  $ 4.1 
Financing cash flows from finance leases 0.3  0.3 
Non-cash lease liability activity (a):
Lease assets obtained in exchange for new operating lease liabilities 6.9 10.1
Lease assets obtained in exchange for new finance lease liabilities 0.7 0.9
(a) 2019 includes leased assets of $9.2 million that were recorded on January 1, 2019 upon adoption of the new leasing standard.

The following table summarized weighted average remaining lease term and weighted average discount rate:
December 31, 2020
Weighted average remaining lease term - Operating leases (in years) 4.1
Weighted average remaining lease term - Finance leases (in years) 3.0
Weighted average discount rate - Operating leases (%) 9.5  %
Weighted average discount rate - Finances leases (%) 7.1  %

The following table provides future minimum payments at December 31, 2020, by year and in the aggregate, for leases having non-cancelable lease terms in excess of one year:
Operating Leases Finance Leases
2021 $ 3.1  $ 0.4 
2022 1.9  0.3 
2023 1.7  0.2 
2024 1.6  0.1 
2025 1.2  — 
Thereafter 0.9  — 
Total lease payments 10.4  1.0 
Less: Unamortized interest 1.9   
Total $ 8.5  $ 1.0 

As of December 31, 2020, we have additional operating leases for our new headquarters and tech center, that have not yet commenced with an estimated initial ROU asset of $11.6 million. These operating leases are expected to commence during first-half fiscal year 2021 with lease terms of 10 years.