CW 2020 Annual Report

Note 14: Leases As stated in Note 2: Summary of Significant Accounting Policies, the Company adopted Topic 842 effective January 1, 2019 using the optional transition method and did not revise prior comparative periods. Consequently, the Company’s reporting for the comparative periods will continue to be in accordance with previously existing GAAP (Topic 840, Leases). For the years ended December 31, 2020 and December 31, 2019 reported in accordance with Topic 842 , the components of lease cost were as follows (in millions):

Year Ended December 31, 2020

Year Ended December 31, 2019

Operating lease cost

$

152.1 $

152.7

Finance lease cost: Amortization of assets Interest on lease liabilities Total finance lease cost

13.9

11.7

0.4

0.6

$

14.3 $

12.3

Variable lease cost

$

36.0 $

30.4

Sublease income

$

11.5 $

12.2

Supplemental balance sheet information related to leases was as follows (in millions):

As of December 31, 2020

As of December 31, 2019

Operating Leases Non-current operating lease assets

$

438.2 $

490.7

Other current liabilities

114.5 405.6

118.6 457.1 575.7

Non-current operating lease liabilities

Total operating lease liabilities

$

520.1 $

Finance Leases Property and equipment, gross Accumulated depreciation Property and equipment, net

$

60.5 $

55.3

(43.2)

(36.7)

$

17.3 $

18.6

Short-term borrowings and current portion of long-term debt

$

10.0 $

10.7

Long-term debt

9.0

9.6

Total finance lease liabilities

$

19.0 $

20.3

Weighted Average Remaining Lease Term (in years) Operating leases

5.4 years 3.7 years

5.9 years 3.7 years

Finance leases

Weighted Average Discount Rate Operating leases

5.8 % 4.8 %

5.9 % 4.6 %

Finance leases

92