Leases
Lessee Accounting
We lease certain office spaces, warehouses, facilities, vehicles and equipment. Our leases have maturity dates ranging from January 2026 to September 2042.
We incurred $28.6, $26.2 and $21.1 of rental expense under operating leases for the years ended December 31, 2025, 2024 and 2023, respectively, and are included within selling, general and administrative expenses within our consolidated statements of income. Payments related to short-term lease costs and taxes and variable service charges on leased properties were immaterial.
The following table presents the lease balances within our consolidated balance sheets, weighted average remaining lease term and weighted average discount rates related to our leases:
| | | | | | | | | | | | | | |
| | December 31, |
| Lease Assets and Liabilities | | 2025 | | 2024 |
| Assets | | | | |
| Operating lease, net | Property, plant and equipment, net | $ | 81.7 | | | $ | 78.6 | |
| Finance lease, net | Other assets | 30.1 | | | 14.7 | |
| Total lease assets | | $ | 111.8 | | | $ | 93.3 | |
| | | | |
| Liabilities | | | | |
| Current: | | | | |
| Operating lease liabilities | Other current liabilities | $ | 20.7 | | | $ | 19.6 | |
| Finance lease liabilities | Other current liabilities | 7.5 | | | 2.5 | |
| Non-current: | | | | |
| Operating lease liabilities | Other long-term liabilities | 62.6 | | | 60.5 | |
| Finance lease liabilities | Other long-term liabilities | 23.5 | | | 12.9 | |
| Total lease liabilities | | $ | 114.3 | | | $ | 95.5 | |
| | | | |
| Weighted-average remaining lease terms | | | | |
| Operating leases | | 5.9 years | | 6.4 years |
| Finance leases | | 5.0 years | | 7.2 years |
| Weighted-average discount rate | | | | |
| Operating leases | | 6.9% | | 7.0% |
| Finance leases | | 6.1% | | 6.8% |
We recorded net non-cash right-of-use assets in exchange for finance and operating lease liabilities of $19.7 and $17.0 for the year ended December 31, 2025, respectively. We recorded net non-cash right-of-use assets in exchange for finance and operating lease liabilities of $0.0 and $25.4 for the year ended December 31, 2024, respectively.
The following table summarizes future minimum lease payments for non-cancelable operating leases and for finance leases as of December 31, 2025:
| | | | | | | | | | | |
| Finance | | Operating |
| 2026 | $ | 9.6 | | | $ | 25.4 | |
| 2027 | 9.4 | | | 20.1 | |
| 2028 | 5.2 | | | 16.5 | |
| 2029 | 3.2 | | | 11.6 | |
| 2030 | 2.7 | | | 7.9 | |
| Thereafter | 6.6 | | | 20.9 | |
| Total future minimum lease payments | $ | 36.7 | | | $ | 102.4 | |
| Less: Present value discount | 5.7 | | | 19.1 | |
| Lease liability | $ | 31.0 | | | $ | 83.3 | |
Lessor Accounting
We lease equipment manufactured by Chart as sales-type and operating leases. As of December 31, 2025 and 2024, our short-term net investment in sales-type leases was $0.8 and $8.1, respectively and is included in other current assets in our consolidated balance sheets. Our long-term net investment in sales-type leases was $1.9 and $31.7 as of December 31, 2025 and 2024, respectively, and is included in other assets in our consolidated balance sheets.
Operating leases offered by Chart may include early termination options. At the end of a lease, a lessee generally has the option to either extend the lease, purchase the underlying equipment for a fixed price or return it to Chart. The lease agreements clearly define applicable return conditions and remedies for non-compliance to ensure that leased equipment will be in good operating condition upon return.
The following table represents sales from sales-type and operating leases:
| | | | | | | | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 | | 2023 |
| Sales-type leases | $ | 42.7 | | | $ | 59.1 | | | $ | 39.3 | |
| Operating leases | 0.3 | | | 4.8 | | | 5.2 | |
| Total sales from leases | $ | 43.0 | | | $ | 63.9 | | | $ | 44.5 | |
The following table represents scheduled payments for sales-type leases:
| | | | | |
| December 31, 2025 |
| 2026 | $ | 0.6 | |
| 2027 | 0.6 | |
| 2028 | 0.6 | |
| 2029 | 0.6 | |
| 2030 | 1.0 | |
| Thereafter | 0.3 | |
| Total | 3.7 | |
| |
| |
| Less: Unearned income | 1.0 | |
| Total | $ | 2.7 | |
The cost of equipment leased to others at December 31, 2025 and 2024, was not material.