Annual report pursuant to Section 13 and 15(d)

Leases

v2.4.1.9
Leases
 12 Months Ended
Dec. 31, 2014
Leases [Abstract]  
Leases
Note 21 – Leases

Operating Leases. The Company has various lease agreements for offices, branches, factories, distribution and service facilities and certain personal property. The longest of these obligations extends through 2032. Most leases contain renewal options and escalation clauses, and some contain purchase options or contingent rentals.

No leases contain restrictions on the Company's activities concerning dividends or incurring additional debt. Rent expense consisted of the following:
(in millions)
2014
 
2013
 
2012
Basic expense
$
27.8

 
$
30.5

 
$
23.6

Contingent expense
1.9

 
2.1

 
2.3

Sublease income
(0.2
)
 
(0.3
)
 
(0.7
)
Rent expense, net
$
29.5

 
$
32.3

 
$
25.2



Future minimum rental payments at December 31, 2014, under agreements classified as operating leases with non-cancelable terms in excess of one year, were as follows:
(in millions)
 
2015
$
28.5

2016
24.6

2017
20.9

2018
13.4

2019
7.9

Thereafter
14.4

Total (not reduced by minimum sublease income of $0.4)
$
109.7



Capital Leases. In October 2011, the Company entered into a construction contract and lease agreement for a boat manufacturing and distribution facility in Brazil. The Company was deemed to be the owner of the project as the Company funded a portion of the construction costs during the construction period. As a result, the Company is accounting for the facility lease as a capital lease. The facility was completed in 2012 and the Company began amortizing the asset through depreciation expense. The amounts recorded in the Consolidated Balance Sheets as of December 31, 2014 and 2013, were as follows:
(in millions)
2014
 
2013
Assets:
 
 
 
Buildings and improvements
$
8.0

 
$
9.2

Accumulated depreciation
(1.9
)
 
(1.3
)
Total assets
$
6.1

 
$
7.9

 
 
 
 
Liabilities:
 
 
 
Short-term debt
$
0.4

 
$
0.6

Debt
4.1

 
5.1

Total liabilities
$
4.5

 
$
5.7



The future minimum rental payments at December 31, 2014, under agreements classified as capital leases with non-cancelable terms in excess of one year, were as follows:
(in millions)
 
2015
$
0.8

2016
0.8

2017
0.8

2018
0.9

2019
0.9

Thereafter
2.3

Total
$
6.5