Leases
We lease office space and certain equipment under various operating leases, with most of our lease portfolio consisting of operating leases for office space. Our leases have remaining lease terms of approximately 1 year to 10 years, which may include the option to extend the lease when it is reasonably certain we will exercise that option. We do not have lease agreements with residual value guarantees, sale leaseback terms, or material restrictive covenants.
The following table presents the components of lease cost:
| | | | | | | | | | | | | | | | | | | | |
| (in millions) | | 2025 | | 2024 | | 2023 |
| Operating lease cost | | $ | 45.2 | | | $ | 44.1 | | | $ | 47.6 | |
| Variable lease cost | | $ | 17.0 | | | $ | 14.9 | | | $ | 18.0 | |
The following table presents other information related to operating leases:
| | | | | | | | | | | | | | | | | | | | |
| (in millions) | | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement for operating lease liabilities | | $ | 44.6 | | | $ | 43.9 | | | $ | 45.3 | |
| Right of use assets obtained in exchange for operating lease liability | | $ | 13.8 | | | $ | 54.4 | | | $ | 11.1 | |
As of December 31, 2025, our minimum future operating lease commitments due in each of the next five years and thereafter are as follows: | | | | | | | | |
| (in millions) | | As of December 31, 2025 |
| 2026 | | $ | 49.5 | |
| 2027 | | 42.9 | |
| 2028 | | 35.5 | |
| 2029 | | 24.1 | |
| 2030 | | 17.5 | |
| Thereafter | | 47.6 | |
| Total minimum lease commitments | | 217.1 | |
| Adjustment for discount to present value | | 28.6 | |
Present value of lease liabilities | | $ | 188.5 | |
The following table summarizes the weighted-average remaining lease terms and weighted-average discount rates for our operating leases:
| | | | | | | | |
| | As of December 31, 2025 |
| Weighted-average remaining lease term (in years) | | 5.6 |
| | |
| Weighted-average discount rate | | 4.6 | % |
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.