Leases:We lease real estate, vehicles, and equipment under operating and finance leases with non-cancelable terms generally expiring at various dates through 2039. Our operating and finance leases generally have 1- to 25-year terms, with one or more renewal options, primarily relating to our real estate leases, with terms to be determined at the time of renewal. The exercise of such lease renewal options is at our sole discretion, and to the extent we are reasonably certain we will exercise a renewal option, the years related to that option are included in our determination of the lease term for purposes of classifying and measuring a given lease. Certain leases also include options to purchase the leased property.
The components of lease costs are as follows (in millions):
| | | | | | | | | | | | | | | | | |
| For the Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 43.4 | | | $ | 41.7 | | | $ | 40.9 | |
| Finance lease cost: | | | | | |
| Amortization of right-of-use assets | 25.7 | | | 25.7 | | | 25.7 | |
| Interest on lease liabilities | 23.0 | | | 24.7 | | | 26.2 | |
| Total finance lease cost | 48.7 | | | 50.4 | | | 51.9 | |
| Short-term and variable lease cost | 1.7 | | | 2.3 | | | 2.9 | |
| Sublease income | (3.2) | | | (3.1) | | | (3.3) | |
| Total lease cost | $ | 90.6 | | | $ | 91.3 | | | $ | 92.4 | |
Supplemental consolidated balance sheet information related to leases is as follows (in millions):
| | | | | | | | | | | | | | | | | | | | |
| | | | As of December 31, |
| | Classification | | 2025 | | 2024 |
| Assets | | | | | | |
| Operating lease | | Operating lease right-of-use assets | | $ | 212.6 | | | $ | 203.7 | |
Finance lease (1) | | Property and equipment, net | | 195.9 | | | 221.5 | |
| Total leased assets | | | | $ | 408.5 | | | $ | 425.2 | |
| | | | | | |
| Liabilities | | | | | | |
| Current liabilities: | | | | | | |
| Operating lease | | Current operating lease liabilities | | $ | 26.5 | | | $ | 26.3 | |
| Finance lease | | Current portion of long-term debt | | 26.5 | | | 23.7 | |
| Noncurrent liabilities: | | | | | | |
| Operating lease | | Long-term operating lease liabilities | | 196.6 | | | 189.7 | |
| Finance lease | | Long-term debt, net of current portion | | 268.1 | | | 294.7 | |
| Total leased liabilities | | | | $ | 517.7 | | | $ | 534.4 | |
(1) Finance lease assets are recorded net of accumulated amortization of $222.9 million and $197.3 million as of December 31, 2025 and December 31, 2024, respectively.
| | | | | | | | | | | |
| As of December 31, |
| 2025 | | 2024 |
| Weighted Average Remaining Lease Term | | | |
| Operating lease | 9.7 years | | 9.7 years |
| Finance lease | 8.9 years | | 9.8 years |
| Weighted Average Discount Rate | | | |
| Operating lease | 6.3 | % | | 6.4 | % |
| Finance lease | 7.7 | % | | 7.7 | % |
Maturities of lease liabilities as of December 31, 2025 are as follows (in millions):
| | | | | | | | | | | |
| Year Ending December 31, | Operating Leases | | Finance
Leases |
| 2026 | $ | 39.5 | | | $ | 47.6 | |
| 2027 | 42.9 | | | 47.4 | |
| 2028 | 41.9 | | | 46.4 | |
| 2029 | 27.5 | | | 47.3 | |
| 2030 | 21.0 | | | 47.4 | |
| 2031 and thereafter | 132.4 | | | 175.3 | |
| Total lease payments | 305.2 | | | 411.4 | |
| Less: Interest portion | (82.1) | | | (116.8) | |
| Total lease liabilities | $ | 223.1 | | | $ | 294.6 | |
Supplemental cash flow information related to our leases is as follows (in millions):
| | | | | | | | | | | | | | | | | |
| For the Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows from operating leases | $ | 42.6 | | | $ | 40.7 | | | $ | 39.0 | |
| Operating cash flows from finance leases | 23.6 | | | 25.5 | | | 27.1 | |
| Financing cash flows from finance leases | 23.9 | | | 21.8 | | | 41.1 | |
| | | | | |
| Right-of-use assets obtained in exchange for lease obligations: | | | | | |
| Operating leases | $ | 38.2 | | | $ | 26.7 | | | $ | 26.2 | |
| Finance leases | 0.2 | | | — | | | 21.4 | |
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.