HYSTER-YALE, INC.HY
HYSTER-YALE, INC. Leases Disclosure
Leasing Arrangements
The Company determines if an arrangement contains a lease and the classification of that lease, if applicable, at inception.
Specifically, when determining the classification of a lease as operating or financing, the Company considers whether there is control of the underlying asset, the transfer of substantially all of the economic benefits associated with the asset and whether the lease term and present value of lease payments are significant relative to the asset's fair value.
The Company does not recognize a lease liability or right-of-use ("ROU") asset for short-term leases (leases with an initial term of twelve months or less). For contracts with lease and non-lease components, the Company does not allocate the contract consideration, and accounts for the lease and non-lease components as a single lease component. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments under the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The implicit rate within the operating leases are generally not determinable and the Company has obtained rates from third-party financiers for relevant geographies, currencies and lease terms to determine the incremental borrowing rate at the inception of new leases. The operating lease ROU asset also includes any lease prepayments, offset by lease incentives. Certain of the Company's leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain the Company will exercise that option. An option to terminate is also considered in connection with determining the ROU asset and lease liability unless it is reasonably certain the Company will not exercise the option. Lease expense for operating lease payments is recognized on a straight-line basis over the term of the lease.
As of December 31, 2025 and 2024, the Company had the following amounts recorded on the Company's Consolidated Balance Sheets:
| Location on Balance Sheet | December 31, 2025 | December 31, 2024 | ||||||||||||||||||
| Assets | ||||||||||||||||||||
| Operating lease assets | $ | $ | ||||||||||||||||||
| Finance lease assets | ||||||||||||||||||||
| Total | $ | 172.1 | $ | 128.0 | ||||||||||||||||
| Location on Balance Sheet | December 31, 2025 | December 31, 2024 | ||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Current | ||||||||||||||||||||
| Operating lease liabilities | ||||||||||||||||||||
| Finance lease liabilities | ||||||||||||||||||||
| Long-term | ||||||||||||||||||||
| Operating lease liabilities | ||||||||||||||||||||
| Finance lease liabilities | ||||||||||||||||||||
| Total | $ | 168.8 | $ | 124.5 | ||||||||||||||||
Finance lease assets are recorded net of accumulated amortization of $25.1 million and $26.5 million as of December 31, 2025 and 2024, respectively. Amortization of plant and equipment under finance leases is included in depreciation expense. Finance lease obligations of $10.6 million, $13.5 million and $11.1 million were incurred in connection with lease agreements to acquire machinery and equipment during 2025, 2024 and 2023, respectively. In addition, leases with HYGFS included in the Consolidated Balance Sheet at December 31, 2025 and 2024, include $21.9 million and $16.3 million of ROU assets and $21.9 million and $16.4 million of lease liabilities, respectively.
As of December 31, 2025, the Company had the following remaining lease term and weighted average discount rates:
| Operating Leases | Finance Leases | |||||||||||||
| Weighted-average remaining lease term in years | 9.40 | 3.50 | ||||||||||||
| Weighted-average discount rate | 5.80 | % | 6.03 | % | ||||||||||
For the year ended December 31, 2025, the Company recorded the following amounts:
| Year Ended | ||||||||||||||||||||
| Location on Income Statement | December 31, 2025 | December 31, 2024 | ||||||||||||||||||
| Operating lease cost | Cost of sales | $ | 11.0 | $ | 10.1 | |||||||||||||||
| Operating lease cost | Selling, general and administrative expenses | 23.6 | 20.7 | |||||||||||||||||
| Finance lease cost | ||||||||||||||||||||
| Amortization of leased assets | Cost of sales | 14.6 | 10.8 | |||||||||||||||||
| Interest on lease liabilities | Interest expense | 1.8 | 1.6 | |||||||||||||||||
| Sublease income | Revenues | (12.2) | (11.6) | |||||||||||||||||
| Total | $ | 38.8 | $ | 31.6 | ||||||||||||||||
The Company recognizes sublease income primarily related to lift trucks in which the Company records revenues over the term of the lease in accordance with the rental agreements with its customers. Aggregate future minimum rentals to be received under noncancellable subleases of lift trucks as of December 31, 2025 were $35.7 million.
For the year ended December 31, 2025, the Company recorded the following amounts:
| Year Ended | ||||||||||||||
| December 31, 2025 | December 31, 2024 | |||||||||||||
| Cash paid for lease liabilities | ||||||||||||||
| Operating cash flows from operating leases | $ | 26.5 | $ | 22.4 | ||||||||||
| Operating cash flows from finance leases | 1.8 | 1.3 | ||||||||||||
| Financing cash flows from finance leases | 15.7 | 9.6 | ||||||||||||
| Non-cash amounts related to right-of-use assets obtained in exchange for lease obligations | ||||||||||||||
| Operating | $ | 67.9 | $ | 53.9 | ||||||||||
| Finance | 10.4 | 11.7 | ||||||||||||
Annual maturities of lease liabilities are as follows:
| Operating Leases | Finance Leases | Total | ||||||||||||||||||
| 2026 | $ | 26.9 | $ | 9.4 | $ | 36.3 | ||||||||||||||
| 2027 | 25.5 | 7.4 | 32.9 | |||||||||||||||||
| 2028 | 23.9 | 4.1 | 28.0 | |||||||||||||||||
| 2029 | 18.8 | 1.3 | 20.1 | |||||||||||||||||
| 2030 | 14.3 | 0.2 | 14.5 | |||||||||||||||||
| Thereafter | 91.6 | 0.4 | 92.0 | |||||||||||||||||
| 201.0 | 22.8 | 223.8 | ||||||||||||||||||
| Less: Interest | (53.1) | (1.9) | (55.0) | |||||||||||||||||
| Net | $ | 147.9 | $ | 20.9 | $ | 168.8 | ||||||||||||||
The Company leases certain office, manufacturing and warehouse facilities and machinery and equipment under noncancellable finance and operating leases that expire at various dates through 2041. Many leases include renewal and/or fair value purchase options.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 3, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
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.