Leases
We have operating leases for buildings, vehicles and certain equipment. The Company has applied practical expedients for leases with a fair value of less than $5,000 or a lease term of less than twelve months. The majority of our leases have remaining lease terms of one to five years, with one building having 47 years remaining.
None of our leases were classified as finance leases in any of the years disclosed.
The components of the lease expense is as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| | Years ended December 31, | |
| In millions | 2025 | | 2024 | | 2023 | |
| Operating lease cost | $ | 3.7 | | | $ | 4.0 | | | $ | 4.6 | | |
Supplemental cash flow information related to leases was as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| | Years ended December 31, | |
| In millions | 2025 | | 2024 | | 2023 | |
| Operating cash flows from operating leases | $ | 4.8 | | | $ | 4.0 | | | $ | 4.6 | | |
During the year ended December 31, 2025, there were additional operating leases entered into totaling $1.5 million (2024: $0.6 million, 2023: $0.5 million). In addition, there was a $1.9 million impairment recognized in 2025 in relation to the Gas Cylinders segment and a $1.6 million impairment recognized in 2023 in relation to the Graphic Arts segment. These are non-cash items but will impact cash in future years.
Supplemental balance sheet information related to leases was as follows:
| | | | | | | | | | | | | | | | | |
| | December 31, | | December 31, | |
| In millions | 2025 | | 2024 | |
| Operating leases | | | | |
| Operating lease right-of-use asset | $ | 8.5 | | | $ | 11.5 | | |
| | | | | |
| Other current liabilities | 4.2 | | | 4.0 | | |
| Other non-current liabilities | 8.0 | | | 10.7 | | |
| | $ | 12.2 | | | $ | 14.7 | | |
| | | | | |
| Weighted Average Remaining Lease Term (Years) | 15.7 | | 13.4 | |
| Weighted Average Discount Rate | 4.60 | % | | 4.52 | % | |
Maturities of lease liabilities were as follows:
| | | | | | | | | | | | | | | | | |
| In millions | | | 2025 | |
| 2026 | | | $ | 4.6 | | |
| 2027 | | | 1.9 | | |
| 2028 | | | 1.6 | | |
| 2029 | | | 1.3 | | |
| 2030 | | | 0.8 | | |
| Thereafter | | | 7.5 | | |
| Total lease payments | | | $ | 17.7 | | |
| Less imputed interest | | | (5.5) | | |
| Total | | | $ | 12.2 | | |
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.