LEASES
Our lease portfolio consists primarily of real estate and equipment leases. Our real estate leases primarily consist of land, office, distribution, warehousing and manufacturing facilities. These leases typically range in term from 2 to 50 years and may contain renewal options for periods up to 10 years at our discretion. Our equipment lease portfolio consists primarily of vehicles, fork trucks and IT equipment. These leases typically range in term from two years to three years and may contain renewal options. Our leases generally do not contain variable lease payments other than (1) certain foreign real estate leases which have payments indexed
to inflation and (2) certain real estate executory costs (such as taxes, insurance and maintenance), which are paid based on actual expenses incurred by the lessor during the year. Our leases generally do not include residual value guarantees.
Our operating lease cost was $20.5 million, $15.7 million, and $10.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. Our variable lease cost was $0.8 million and $1.0 million for the years ended December 31, 2025 and 2024 and was immaterial for the year December 31, 2023. Our finance lease cost and short-term lease cost were immaterial for the years ended December 31, 2025, 2024 and 2023.
Supplemental balance sheet information related to leases:
| | | | | | | | | | | | | | | | | | | | |
| | December 31, | | |
| In millions | | 2025 | | 2024 | | Balance Sheet Location |
| Assets | | | | | | |
| Operating | | $ | 39.5 | | | $ | 37.3 | | | Other assets |
Finance(1) | | 2.1 | | | 1.5 | | | Property, plant and equipment, net |
| Total lease assets | | $ | 41.6 | | | $ | 38.8 | | | |
| Liabilities | | | | | | |
| Current | | | | | | |
| Operating | | $ | 17.1 | | | $ | 12.0 | | | Other accrued expenses |
| Finance | | 0.9 | | | 0.5 | | | Other accrued expenses |
| Long-term | | | | | | |
| Operating | | $ | 23.8 | | | $ | 26.6 | | | Other liabilities |
| Finance | | 1.2 | | | 1.0 | | | Other liabilities |
| Total lease liabilities | | $ | 43.0 | | | $ | 40.1 | | | |
(1)Finance lease assets were recorded net of accumulated amortization of $2.1 million and $1.2 million at December 31, 2025 and 2024.
Supplemental cash flow and other information related to leases:
| | | | | | | | | | | | | | | | | | | | |
| | Years ended December 31, |
| In millions | | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | | |
| Operating cash flows from operating leases | | $ | 17.9 | | | $ | 14.3 | | | $ | 8.8 | |
| Right-of-use assets obtained in exchange for lease obligations | | | | | | |
| Operating leases | | $ | 10.8 | | | $ | 14.5 | | | $ | 11.8 | |
| Finance leases | | $ | 1.7 | | | $ | 1.1 | | | $ | 0.2 | |
Additional information related to leases:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Weighted-average remaining lease term (in years) | | | |
| Operating leases | 3.2 | | 3.3 |
| Finance leases | 2.7 | | 3.2 |
| Weighted-average discount rate | | | |
| Operating leases | 4.5 | % | | 4.6 | % |
| Finance leases | 4.5 | % | | 4.4 | % |
Following is a summary of the future minimum lease payments due to finance and operating leases with terms of more than one year at lease commencement at December 31, 2025, together with the net present value of the minimum payments:
| | | | | | | | | | | | | | |
| In millions | | Finance Leases | | Operating Leases |
| 2026 | | $ | 1.1 | | | $ | 17.5 | |
| 2027 | | 0.9 | | | 11.8 | |
| 2028 | | 0.4 | | | 7.6 | |
| 2029 | | 0.2 | | | 4.7 | |
| 2030 | | — | | | 2.6 | |
| After 2030 | | — | | | 0.2 | |
| Total minimum lease payments | | 2.6 | | | 44.4 | |
| Interest | | (0.5) | | | (3.5) | |
| Present value of net minimum lease payments | | $ | 2.1 | | | $ | 40.9 | |