LEASES
Lessor Information related to Intuitive System Leasing
Sales-type Leases. Lease receivables relating to sales-type lease arrangements are presented on the Consolidated Balance Sheets as follows (in millions):
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| December 31, |
| 2025 | | 2024 |
| Gross lease receivables | $ | 317.5 | | | $ | 393.4 | |
| Unearned income | (14.7) | | | (13.9) | |
| Subtotal | 302.8 | | | 379.5 | |
| Allowance for credit loss | (2.6) | | | (2.6) | |
| Net investment in sales-type leases | $ | 300.2 | | | $ | 376.9 | |
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| Reported as: | | | |
| Prepaids and other current assets | $ | 100.9 | | | $ | 131.4 | |
| Intangible and other assets, net | 199.3 | | | 245.5 | |
| Net investment in sales-type leases | $ | 300.2 | | | $ | 376.9 | |
Contractual maturities of gross lease receivables as of December 31, 2025, are as follows (in millions):
| | | | | |
| Fiscal Year | Amount |
| 2026 | $ | 111.9 | |
| 2027 | 90.6 | |
| 2028 | 58.8 | |
| 2029 | 38.9 | |
| 2030 | 12.4 | |
| 2031 and thereafter | 4.9 | |
| Total | $ | 317.5 | |
Operating Leases. The Company’s fixed-payment or usage-based operating lease terms are generally less than seven years. Future lease payments (excluding non-lease elements and contingent payments related to usage-based arrangements) related to the non-cancellable portion of operating leases as of December 31, 2025, are as follows (in millions):
| | | | | |
| Fiscal Year | Amount |
| 2026 | $ | 326.1 | |
| 2027 | 269.7 | |
| 2028 | 208.6 | |
| 2029 | 151.1 | |
| 2030 | 83.5 | |
| 2031 and thereafter | 61.9 | |
| Total | $ | 1,100.9 | |
Lessee Information
The Company enters into operating leases primarily for real estate, automobiles, and certain equipment. Operating lease expense was $40.9 million, $33.9 million, and $26.8 million for the years ended December 31, 2025, 2024, and 2023, respectively. For leases with terms of 12 months or less, the related expense was immaterial for each of the years ended December 31, 2025, 2024, and 2023.
Supplemental cash flow information for the years ended December 31, 2025, 2024, and 2023 related to operating leases was as follows (in millions):
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| Year Ended December 31, | | | |
| 2025 | | 2024 | | 2023 | | | |
| Cash paid for leases that were included within operating cash outflows | $ | 40.6 | | | $ | 33.2 | | | $ | 30.2 | | | | |
| Right-of-use assets recognized related to new lease obligations | $ | 46.2 | | | $ | 88.6 | | | $ | 27.8 | | | | |
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Supplemental balance sheet information related to operating leases, as of December 31, 2025, and 2024, was as follows (in millions, except lease term and discount rate):
| | | | | | | | | | | | | | |
| December 31, | | | |
| 2025 | | 2024 | | | |
| Intangible and other assets, net (Right-of-use assets) | $ | 150.8 | | | $ | 136.4 | | | | |
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| Other accrued liabilities | $ | 39.0 | | | $ | 33.5 | | | | |
| Other long-term liabilities | 131.9 | | | 112.5 | | | | |
| Total lease liabilities | $ | 170.9 | | | $ | 146.0 | | | | |
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| Weighted-average remaining lease term | 6.0 years | | 5.2 years | | | |
| Weighted-average discount rate | 4.6% | | 4.4% | | | |
As of December 31, 2025, the future payments related to the Company’s operating lease liabilities are scheduled as follows (in millions):
| | | | | | | | |
| Fiscal Year | Amount | | | |
| 2026 | $ | 44.5 | | | | |
| 2027 | 35.3 | | | | |
| 2028 | 33.7 | | | | |
| 2029 | 25.5 | | | | |
| 2030 | 15.2 | | | | |
| 2031 and thereafter | 45.0 | | | | |
| Total lease payments | 199.2 | | | | |
| Less: imputed interest | (28.3) | | | | |
| Total operating lease liabilities | $ | 170.9 | | | | |