ARMSTRONG WORLD INDUSTRIES INC Leases Disclosure
NOTE 11. LEASES
The following table presents our lease costs for the years ended December 31, 2025, 2024 and 2023:
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2025 |
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2024 |
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2023 |
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Operating lease cost |
|
$ |
12.2 |
|
|
$ |
10.0 |
|
|
$ |
8.5 |
|
Finance lease cost: |
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|
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|
|
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Amortization of leased assets |
|
$ |
6.3 |
|
|
$ |
4.2 |
|
|
$ |
3.1 |
|
Interest on lease liabilities |
|
|
2.0 |
|
|
|
1.4 |
|
|
|
0.9 |
|
Total finance lease cost |
|
$ |
8.3 |
|
|
$ |
5.6 |
|
|
$ |
4.0 |
|
Short-term lease expense and variable lease cost were not material for the years ended December 31, 2025, 2024 and 2023 and are excluded from the table above. As of December 31, 2025, we did not have any material leases that have not yet commenced.
The following table presents supplemental cash flow information related to our leases for the years ended December 31, 2025, 2024 and 2023:
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2025 |
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2024 |
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2023 |
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Cash paid for amounts included in the measurement of lease liabilities |
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Operating cash flows from operating leases |
|
$ |
12.1 |
|
|
$ |
9.6 |
|
|
$ |
8.0 |
|
Operating cash flows from finance leases |
|
|
1.8 |
|
|
|
1.3 |
|
|
|
0.8 |
|
Financing cash flows from finance leases |
|
|
5.8 |
|
|
|
3.3 |
|
|
|
2.7 |
|
ROU assets obtained in exchange for lease liabilities |
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|
|
|
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Operating leases (1) |
|
$ |
18.5 |
|
|
$ |
19.0 |
|
|
$ |
15.8 |
|
Finance leases (2) |
|
|
7.7 |
|
|
|
13.6 |
|
|
|
12.3 |
|
The following table presents the weighted average assumptions used to compute our ROU assets and lease liabilities:
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|
December 31, 2025 |
|
|
December 31, 2024 |
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||
Weighted average remaining lease term (in years) |
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|
|
|
|
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||
Operating leases |
|
|
5.8 |
|
|
|
5.7 |
|
Finance leases |
|
|
10.3 |
|
|
|
11.4 |
|
Weighted average discount rate |
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|
|
|
|
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Operating leases |
|
|
5.4 |
% |
|
|
5.6 |
% |
Finance leases |
|
|
5.2 |
% |
|
|
5.1 |
% |
Undiscounted future minimum lease payments as of December 31, 2025, by year and in the aggregate, having non-cancelable lease terms in excess of one year are as follows:
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|
Operating Leases |
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|
Finance Leases |
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Maturity of lease liabilities |
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|
|
|
|
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||
2026 |
|
$ |
13.1 |
|
|
$ |
8.2 |
|
2027 |
|
|
11.9 |
|
|
|
7.3 |
|
2028 |
|
|
10.1 |
|
|
|
3.9 |
|
2029 |
|
|
5.1 |
|
|
|
3.1 |
|
2030 |
|
|
4.2 |
|
|
|
3.2 |
|
Thereafter |
|
|
15.3 |
|
|
|
26.5 |
|
Total lease payments |
|
|
59.7 |
|
|
|
52.2 |
|
Less interest |
|
|
(11.3 |
) |
|
|
(13.4 |
) |
Present value of lease liabilities |
|
$ |
48.4 |
|
|
$ |
38.8 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 22, 2016 | |
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.