HEXCEL CORP /DE/ Leases Disclosure
Note 7 — Leases
At December 31, 2025, we had approximately $25.7 million of right of use assets recorded in non-current other assets, and $25.7 million of related liabilities, $18.7 million of which was included in other non-current liabilities with the current portion of $7.0 million included in accrued liabilities. The weighted average of the remaining lease terms was approximately 5 years. We discount the future lease payments of our leases using the prevailing rates extended to us by our lenders relevant to the period of inception. These rates are comprised of SOFR plus a stated spread less a component related to collateralization. The rates are relative to the duration of the lease at inception and the country of origin. The weighted average interest rate used in calculating the fair values listed above was 4.2%.
The following table lists the schedule of future undiscounted cash payments related to right of use assets by year:
(In millions) |
|
|
|
|
2026 |
|
$ |
7.8 |
|
2027 |
|
|
6.8 |
|
2028 |
|
|
6.0 |
|
2029 |
|
|
4.2 |
|
2030 |
|
|
1.3 |
|
Thereafter |
|
|
2.1 |
|
Total lease payments |
|
|
28.2 |
|
Less: Imputed interest |
|
|
2.5 |
|
Present value of lease payments |
|
$ |
25.7 |
|
Operating lease expense recognized during the years ended December 31, 2025, 2024 and 2023, was $16.1 million, $15.3 million and $16.1 million, respectively. Expense related to operating leases which have a duration of a year or less were not material. Expenses for finance leases for the years ended December 31, 2025, 2024 and 2023 were not material.
(In millions) |
Balance Sheet Classification |
2025 |
|
2024 |
|
||
|
Other assets |
$ |
25.7 |
|
$ |
25.4 |
|
|
|
|
|
|
|
||
Accrued liabilities |
|
7.0 |
|
|
6.0 |
|
|
Other non-current liabilities |
|
18.7 |
|
|
19.4 |
|
|
Total operating lease liabilities |
|
$ |
25.7 |
|
$ |
25.4 |
|
|
|
|
|
|
|
||
Property, plant & equipment, net |
|
3.1 |
|
|
2.8 |
|
|
Finance lease accumulated depreciation |
Property, plant & equipment, net |
|
1.5 |
|
|
1.2 |
|
Finance lease, net |
|
$ |
1.6 |
|
$ |
1.6 |
|
|
|
|
|
|
|
||
Accrued liabilities |
|
— |
|
|
0.1 |
|
|
Finance lease long-term liabilities |
Long-term debt |
|
— |
|
|
— |
|
Total finance lease liabilities |
|
$ |
— |
|
$ |
0.1 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 11, 2026 | Showing above |
| 2024 | Feb 5, 2025 | |
| 2023 | Feb 7, 2024 | |
| 2022 | Feb 8, 2023 | |
| 2021 | Feb 9, 2022 | |
| 2020 | Feb 9, 2021 | |
| 2019 | Feb 18, 2020 | |
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.