PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES. Property, plant and equipment and long-lived assets are recorded at historical cost, including interest where applicable. Impairment of property, plant and equipment and long-lived assets is recognized when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the expected future undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized at that time to reduce the asset to the lower of its fair value or its net book value.
Original Cost
Estimated Useful Life
(years)
20252024
Land and land improvements
(1)
$19.3 $17.2 
Buildings and building improvements
15-30
52.4 47.3 
Machinery, tools and equipment
3-12
36.8 32.2 
Leasehold improvements (2)
10
10.5 3.5 
Computer equipment and software
3-10
34.6 18.4 
Furniture and fixtures
5-8
25.5 15.9 
Tooling
5
26.8 21.9 
Construction in progress19.7 13.5 
Less accumulated depreciation(81.0)(41.8)
Right-of use operating lease assets141.4 118.1 
Total property plant and equipment, net$286.0 $246.2 
(1)Estimated useful life for land and land improvements is perpetual and 15 years, respectively.
(2)The estimated useful life for leasehold improvements is the lesser of 10 years or the term of the lease.

Depreciation expense. Depreciation expense was $33.1, $29.5, $16.2 and $18.3 for the Successor Periods for the years ended December 31, 2025 and 2024 and from August 12, 2023 to December 31, 2023, and the Predecessor Period from January 1, 2023 to August 11, 2023, respectively.
Operating lease liabilities. Our current operating lease liabilities, included in Other current liabilities in our Statement of Financial Position, were $51.8 and $43.3 as of December 31, 2025 and 2024, respectively. Our non-current operating lease liabilities, included in Other liabilities in our Statement of Financial Position, were $91.9 and $76.3 as of December 31, 2025 and 2024, respectively.

SuccessorPredecessor
Year ended December 31,Period from 08/12/2023 through 12/31/2023Period from 01/01/2023 through 08/11/2023
Operating Lease Expense20252024
Operating lease expense$71.2 $64.6 $25.3 $41.9 
Variable lease expense$10.5 $11.9 $4.1 $5.2 

Maturity of Operating Lease Liabilities20262027202820292030ThereafterTotal
Undiscounted lease payments$60.5 $42.7 $28.8 $16.0 $4.4 $13.1 $165.5 
Less: present value discount(21.8)
Total lease liability as of December 31, 2025$143.7 
SuccessorPredecessor
Year ended December 31,Period from 08/12/2023 through 12/31/2023Period from 01/01/2023 through 08/11/2023
Supplemental Information Related to Operating Leases20252024
Operating cash flows used for operating leases$70.6 $70.5 $30.1 $43.3 
Right-of-use assets obtained in exchange for new lease liabilities$50.5 $59.5 $6.7 $19.2 
Weighted-average remaining lease term4.12.84.8
Weighted-average discount rate7.46 %6.30 %8.30 %

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.