Element Solutions Inc Leases Disclosure
| December 31, | ||||||||||||||||||||
| (dollars in millions) | Balance sheet location | 2025 | 2024 | |||||||||||||||||
| Asset Category | ||||||||||||||||||||
| ROU assets | $ | 83.8 | $ | 79.7 | ||||||||||||||||
| Total | $ | 83.8 | $ | 79.7 | ||||||||||||||||
| Liability Category | ||||||||||||||||||||
| Current lease liabilities | $ | 16.5 | $ | 15.2 | ||||||||||||||||
| Non-current lease liabilities | 69.5 | 66.4 | ||||||||||||||||||
| Total | $ | 86.0 | $ | 81.6 | ||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| (dollars in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Supplemental Information for Operating Leases | ||||||||||||||||||||
Operating cash payments | $ | 20.2 | $ | 20.3 | $ | 21.5 | ||||||||||||||
ROU assets obtained in exchange for lease obligations | $ | 15.5 | $ | 12.1 | $ | 20.2 | ||||||||||||||
| Weighted average remaining lease term | 9 years | 10 years | 10 years | |||||||||||||||||
| Weighted average discount rate | 4.3% | 4.3% | 4.2% | |||||||||||||||||
| (dollars in millions) | |||||
| 2026 | $ | 19.8 | |||
| 2027 | 14.9 | ||||
| 2028 | 11.6 | ||||
| 2029 | 9.2 | ||||
| 2030 | 7.8 | ||||
| Thereafter | 39.9 | ||||
| Total future minimum lease payments | 103.2 | ||||
| Less: imputed interest | (17.2) | ||||
| Present value of lease liabilities | $ | 86.0 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
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.