Leases
The components of lease expense for the years ended December 31, 2025 and 2024 are as follows.
| | | | | | | | | | | |
| 2025 | | 2024 |
| Operating lease cost | $ | 78.6 | | | $ | 64.5 | |
| | | |
| Finance lease cost | | | |
| Amortization of right-of-use assets | $ | 1.4 | | | $ | 1.5 | |
| Interest on lease liabilities | 0.8 | | | 0.9 | |
| Total finance lease cost | $ | 2.2 | | | $ | 2.4 | |
| | | |
| Short-term lease cost | $ | 2.5 | | | $ | 2.2 | |
Supplemental cash flow information related to leases for the years ended December 31, 2025 and 2024 is as follows.
| | | | | | | | | | | |
| 2025 | | 2024 |
| Supplemental Cash Flows Information | | | |
| Cash Paid for Amounts Included in the Measurement of Lease Liabilities | | | |
| Operating cash flows from operating leases | $ | 77.4 | | | $ | 63.8 | |
| Operating cash flows from finance leases | 0.8 | | | 0.9 | |
| Financing cash flows from finance leases | 1.3 | | | 1.3 | |
| Leased Assets Obtained in Exchange for New Operating Lease Liabilities | 55.0 | | | 96.2 | |
Supplemental balance sheet information related to leases is as follows.
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Operating leases | | | |
| Other assets | $ | 236.4 | | | $ | 226.6 | |
| | | |
| Accrued liabilities | $ | 64.8 | | | $ | 56.3 | |
| Other liabilities | 168.0 | | | 165.5 | |
| Total operating lease liabilities | $ | 232.8 | | | $ | 221.8 | |
| | | |
| Finance Leases | | | |
| Property, plant and equipment | $ | 9.7 | | | $ | 11.1 | |
| | | |
| Short-term borrowings and current maturities of long-term debt | $ | 1.3 | | | $ | 1.3 | |
| Long-term debt, less current maturities | 11.2 | | | 12.6 | |
| Total finance lease liabilities | $ | 12.5 | | | $ | 13.9 | |
| | | |
| Weighted Average Remaining Lease Term (in years) | | | |
| Operating leases | 5.0 | | 5.2 |
| Finance leases | 8.7 | | 9.4 |
| | | |
| Weighted Average Discount Rate | | | |
| Operating leases | 4.2 | % | | 4.1 | % |
| Finance leases | 6.5 | % | | 6.5 | % |
Maturities of lease liabilities as of December 31, 2025 are as follows.
| | | | | | | | | | | |
| Operating Leases | | Finance Leases |
| 2026 | $ | 73.3 | | | $ | 2.1 | |
| 2027 | 57.9 | | | 2.1 | |
| 2028 | 42.9 | | | 2.1 | |
| 2029 | 27.9 | | | 2.1 | |
| 2030 | 18.0 | | | 2.1 | |
| Thereafter | 38.9 | | | 6.3 | |
| Total lease payments | $ | 258.9 | | | $ | 16.8 | |
| Less imputed interest | (26.1) | | | (4.3) | |
| Total | $ | 232.8 | | | $ | 12.5 | |
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.