Leases
Operating leases and financing leases
Supplemental balance sheet information related to our operating and financing ROU assets and lease liabilities is as follows (in millions):
| | | | | | | | | | | | | | | | | | |
| | | December 31, | |
| Balance Sheet Location | | 2025 | | 2024 | |
| Assets | | | | | | |
| Operating lease ROU assets, net | Operating lease ROU assets, net | | $ | 173.5 | | | $ | 151.9 | | |
| Financing lease ROU assets, net | Other assets, net | | $ | 0.7 | | | $ | 0.6 | | |
| | | | | | |
| Liabilities | | | | | | |
| Current | | | | | | |
| Operating lease liabilities, short-term | Operating lease liabilities, short-term | | $ | 22.9 | | | $ | 18.1 | | |
| Financing lease liabilities, short-term | Accounts payable and accrued expenses | | $ | 0.3 | | | $ | 0.2 | | |
| | | | | | |
| Non-current | | | | | | |
| Operating lease liabilities, long-term | Operating lease liabilities, long-term | | $ | 189.7 | | | $ | 164.5 | | |
| Financing lease liabilities, long-term | Other long-term liabilities | | $ | 0.5 | | | $ | 0.4 | | |
The components of lease expense included in our consolidated statements of operations for the periods presented below are as follows (in millions):
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| | | | | | |
| Operating lease costs: | | $ | 34.3 | | | $ | 30.9 | | | $ | 23.7 | |
| | | | | | |
| Financing lease costs: | | | | | | |
| Amortization of ROU assets | | 0.3 | | | 0.2 | | | 0.3 | |
| Interest on lease liabilities | | — | | | — | | | — | |
| Total financing lease costs | | 0.3 | | | 0.2 | | | 0.3 | |
| Variable lease costs | | 1.7 | | | 2.7 | | | 2.7 | |
| Total lease costs | | $ | 36.3 | | | $ | 33.8 | | | $ | 26.7 | |
Other information related to leases (in millions): | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| Supplemental Cash Flows Information | | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | |
| Operating cash flows from operating leases | | $ | 32.8 | | | $ | 29.4 | | | $ | 23.1 | |
| Operating cash flows from finance leases | | $ | — | | | $ | — | | | $ | 0.1 | |
| Financing cash flows from finance leases | | $ | 0.2 | | | $ | 0.3 | | | $ | 0.4 | |
| | | | | | |
| Lease liabilities arising from new ROU assets: | | | | | | |
| Operating leases | | $ | 49.6 | | | $ | 32.5 | | | $ | 47.3 | |
| Finance leases | | $ | 0.3 | | | $ | 0.1 | | | $ | 0.3 | |
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Weighted-average remaining lease term (years): | | | |
| Operating leases | 9.4 | | 10.4 |
| Finance leases | 3.4 | | 2.9 |
| | | |
| Weighted-average discount rate: | | | |
| Operating leases | 6.8 | % | | 6.6 | % |
| Finance leases | 7.1 | % | | 6.9 | % |
As of December 31, 2025, our future minimum lease obligations were as follows (in millions):
| | | | | | | | | | | | | | | | | | | |
| Operating Leases | | Finance Leases | | | | Total |
| 2026 | $ | 36.1 | | | $ | 0.3 | | | | | $ | 36.4 | |
| 2027 | 33.8 | | | 0.3 | | | | | 34.1 | |
| 2028 | 32.0 | | | 0.1 | | | | | 32.1 | |
| 2029 | 31.2 | | | 0.1 | | | | | 31.3 | |
| 2030 | 27.3 | | | 0.1 | | | | | 27.4 | |
| Thereafter | 137.5 | | | — | | | | | 137.5 | |
| Total future lease payments | 297.9 | | | 0.9 | | | | | 298.8 | |
| Less: imputed interest | 85.3 | | | 0.1 | | | | | 85.4 | |
| Total | $ | 212.6 | | | $ | 0.8 | | | | | $ | 213.4 | |
| | | | | | | |
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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.