COMMITMENTS AND LEASES
Supplemental cost information related to leases is shown below.
| | | | | | | | | | | | | | | | | | | | |
| (In millions) | | 2025 | | 2024 | | 2023 |
| Operating lease costs | | $ | 77.7 | | | $ | 75.1 | | | $ | 73.6 | |
Lease costs related to finance leases were not material in 2025, 2024 or 2023.
Supplemental balance sheet information related to leases is shown below.
| | | | | | | | | | | | | | | | | | | | |
| (In millions) | | Balance Sheet Location | | 2025 | | 2024 |
| Assets | | | | | | |
| Operating | | Other assets | | $ | 215.8 | | | $ | 227.5 | |
Finance(1) | | Property, plant and equipment, net | | 15.9 | | | 32.5 | |
| Total leased assets | | | | $ | 231.7 | | | $ | 260.0 | |
| Liabilities | | | | | | |
| Current: | | | | | | |
| Operating | | Other current liabilities | | $ | 53.1 | | | $ | 49.6 | |
| Finance | | Short-term borrowings and current portion of long-term debt and finance leases | | 5.2 | | | 4.3 | |
| Non-current: | | | | | | |
| Operating | | Long-term retirement benefits and other liabilities | | 167.6 | | | 176.1 | |
| Finance | | Long-term debt and finance leases | | 11.0 | | | 9.1 | |
| Total lease liabilities | | | | $ | 236.9 | | | $ | 239.1 | |
(1) Finance lease assets are net of accumulated amortization of $16.0 million and $18.7 million as of year-end 2025 and 2024, respectively.
Supplemental cash flow information related to leases is shown below.
| | | | | | | | | | | | | | | | | | | | |
| (In millions) | | 2025 | | 2024 | | 2023 |
Cash paid for amounts included in measurement of operating lease liabilities | | $ | 63.8 | | | $ | 61.0 | | | $ | 55.8 | |
| Operating lease assets obtained in exchange for operating lease liabilities | | 47.6 | | | 93.0 | | | 92.4 | |
Cash flows related to finance leases were not material in 2025, 2024 or 2023.
Weighted average remaining lease term and discount rate information related to leases as of December 31, 2025 and December 28, 2024 is shown below.
| | | | | | | | | | | | | | |
| | 2025 | | 2024 |
| Weighted average remaining lease term (in years): | | | | |
| Operating | | 6.5 | | 6.7 |
| Finance | | 3.6 | | 3.6 |
| Weighted average discount rate (percentage): | | | | |
| Operating | | 4.7 | % | | 4.6 | % |
| Finance | | 4.7 | | | 4.7 | |
Operating and finance lease liabilities by maturity date from December 31, 2025 are shown below.
| | | | | | | | | | | | | | |
| (In millions) | | Operating Leases | | Finance Leases |
| 2026 | | $ | 59.7 | | | $ | 6.0 | |
| 2027 | | 46.9 | | | 5.0 | |
| 2028 | | 33.6 | | | 3.3 | |
| 2029 | | 28.1 | | | 2.3 | |
| 2030 | | 22.2 | | | 1.0 | |
| 2031 and thereafter | | 66.9 | | | .3 | |
| Total lease payments | | 257.4 | | | 17.9 | |
| Less: imputed interest | | (36.7) | | | (1.7) | |
| Present value of lease liabilities | | $ | 220.7 | | | $ | 16.2 | |
As of December 31, 2025, we had no significant operating or finance leases that had not yet commenced.
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.