LEASES
Total lease expense for the years ended December 31, 2025, 2024 and 2023, was $69.1 million, $64.2 million and $60.9 million, respectively, and is classified within Cost of goods sold and Selling and administrative expenses within the Consolidated Statements of Comprehensive Income. Lease expense related to short-term leases, variable lease payments or other leases or lease components not included within the ROU asset or lease liability totaled $18.6 million, $15.9 million and $16.9 million, respectively, for the years ended December 31, 2025, 2024 and 2023. No material lease costs have been capitalized on the Consolidated Balance Sheets as of December 31, 2025 or 2024.
Amounts included within the Consolidated Balance Sheets related to the Company's ROU asset and lease liability were as follows:
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| | | December 31, 2025 | | December 31, 2024 |
| In millions | Balance Sheet classification | | Real estate | | Equipment | | Total | | Real estate | | Equipment | | Total |
| ROU asset | Other noncurrent assets | | $ | 116.5 | | | $ | 49.9 | | | $ | 166.4 | | | $ | 107.1 | | | $ | 40.6 | | | $ | 147.7 | |
| Lease liability - current | Accrued expenses and other current liabilities | | 22.5 | | | 19.2 | | | 41.7 | | | 19.8 | | | 16.9 | | | 36.7 | |
| Lease liability - noncurrent | Other noncurrent liabilities | | 98.0 | | | 30.5 | | | 128.5 | | | 91.0 | | | 23.5 | | | 114.5 | |
| | | | | | | | | | | | | |
| Other information: | | | | | | | | | | | | |
| Weighted-average remaining term (years) | | 10.9 | | 3.0 | | | | 11.2 | | 2.9 | | |
| Weighted-average discount rate | | 5.3 | % | | 5.9 | % | | | | 5.2 | % | | 5.8 | % | | |
The following table summarizes additional information related to the Company's leases for the years ended December 31:
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| | 2025 | | 2024 |
| In millions | | Real estate | | Equipment | | Total | | Real estate | | Equipment | | Total |
| Cash paid for amounts included in the measurement of lease liabilities | | $ | 27.0 | | | $ | 23.5 | | | $ | 50.5 | | | $ | 25.3 | | | $ | 23.0 | | | $ | 48.3 | |
ROU assets obtained in exchange for new lease liabilities | | 14.2 | | | 22.0 | | | 36.2 | | | 12.1 | | | 20.5 | | | 32.6 | |
Future Repayments
Future minimum lease payments required under non-cancellable operating leases for both the real estate and equipment lease portfolios for the next five years and thereafter as of December 31, 2025, were as follows:
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| In millions | | 2026 | | 2027 | | 2028 | | 2029 | | 2030 | | Thereafter | | Total |
| Real estate leases | | $ | 28.3 | | | $ | 23.8 | | | $ | 15.9 | | | $ | 11.1 | | | $ | 9.2 | | | $ | 74.1 | | | $ | 162.4 | |
| Equipment leases | | 21.5 | | | 16.0 | | | 10.1 | | | 4.8 | | | 1.5 | | | 0.2 | | | 54.1 | |
| Total | | $ | 49.8 | | | $ | 39.8 | | | $ | 26.0 | | | $ | 15.9 | | | $ | 10.7 | | | $ | 74.3 | | | $ | 216.5 | |
The difference between the total undiscounted minimum lease payments and the combined current and noncurrent lease liabilities as of December 31, 2025, is due to imputed interest of $46.3 million.
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.