Page 45 - 2019 Annual Report
P. 45
NOTES TO FINANCIAL STATEMENTS (continued)
The incremental borrowing rate range used was 2.1% to 5.5%. Weighted‐average remaining lease terms and discount rates are
as follows:
December 31 2019
Weighted‐average remaining lease terms (years):
Operating leases 14.5
Finance leases 9.0
Weighted‐average discount rates:
Operating leases 4.3%
Finance leases 5.2%
Future lease payments as of December 31, 2019 are as follows:
Operating Finance
(in millions) Leases Leases
2020 $ 71.9 $ 3.2
2021 58.9 1.9
2022 53.1 1.1
2023 49.2 0.8
2024 42.1 0.7
Thereafter 396.1 3.5
Total lease payments 671.3 11.2
Less: imputed interest (184.7 ) (2.5 )
Present value of lease payments 486.6 8.7
Less: current lease obligations (52.7 ) (2.8 )
Total long‐term lease obligations $ 433.9 $ 5.9
Leases entered into but not yet commenced as of December 31, 2019 are immaterial.
Subsequent to December 31, 2019, the Company entered into a lease for its corporate headquarters in Raleigh, North Carolina
to commence in 2021. The agreement represents a 15‐year lease with fixed rent payments totaling approximately $56 million
over the term of the lease.
Lease disclosures for the years ended December 31, 2018 and 2017 prior to the adoption of ASC 842 are as follows:
Total lease expense for operating leases was $122.5 million and $90.7 million for the years ended December 31, 2018 and 2017,
respectively. Total royalties, principally for leased properties, were $52.5 million and $51.8 million for the years ended
December 31, 2018 and 2017, respectively. The Company also has capital lease obligations for machinery and equipment.
Future minimum lease and royalty commitments for all noncancelable agreements and capital lease obligations as of December
31, 2018 were as follows:
Capital Operating Royalty
(in millions) Leases Leases Commitments
2019 $ 3.7 $ 106.0 $ 14.6
2020 2.7 70.5 11.4
2021 1.7 60.4 10.3
2022 1.0 57.5 9.5
2023 0.7 56.5 8.1
Thereafter 3.9 318.1 66.0
Total 13.7 $ 669.0 $ 119.9
Less: imputed interest (2.9 )
Present value of minimum lease payments 10.8
Less: current capital lease obligations (3.2 )
Long‐term capital lease obligations $ 7.6
Celebrating 25 Years as a Public Company Annual Report ♦ Page 43
