Ingevity CorpNGVT
Ingevity Corp Leases Disclosure
Leases
We have both operating and finance leases, with the majority being operating lease agreements related to rail cars, tanks, equipment, and real estate. Supplemental consolidated balance sheet information related to our leases is as follows:
| December 31, | |||||||||||||||||
| In millions | Financial Statement Caption | 2025 | 2024 | ||||||||||||||
| Assets | |||||||||||||||||
Operating lease assets, net (1) | Operating lease assets, net | $ | 29.5 | $ | 44.7 | ||||||||||||
Finance lease assets, net (2) | 37.0 | 50.2 | |||||||||||||||
| Total lease assets | $ | 66.5 | $ | 94.9 | |||||||||||||
| Liabilities | |||||||||||||||||
| Current | |||||||||||||||||
Operating lease liabilities (3) | Current operating lease liabilities | $ | 11.8 | $ | 14.4 | ||||||||||||
| Finance lease liabilities | 1.2 | 1.1 | |||||||||||||||
| Noncurrent | |||||||||||||||||
| Operating lease liabilities | Noncurrent operating lease liabilities | 22.4 | 33.6 | ||||||||||||||
| Finance lease liabilities | 97.6 | 98.9 | |||||||||||||||
| Total lease liabilities | $ | 133.0 | $ | 148.0 | |||||||||||||
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(1) Operating lease assets, net are recorded net of accumulated amortization of $35.6 million and $40.2 million as of December 31, 2025, and 2024, respectively.
(2) Finance lease assets, net are recorded net of accumulated amortization in Property, plant, and equipment, net and Other assets, net of $83.2 million and $1.2 million, as of December 31, 2025, and $81.4 million and $1.4 million, as of December 31, 2024.
(3) Operating lease liabilities include $0.2 million and $0.2 million of accrued interest, as of December 31, 2025 and 2024, respectively.
Finance Leases
Our finance lease obligations of $98.8 million and $100.0 million at December 31, 2025 and 2024, respectively, primarily consist of two leases. The first obligation of $80.0 million, at December 31, 2025, is owed to the city of Wickliffe, Kentucky, associated with Performance Materials' Wickliffe, Kentucky, manufacturing plant, which is due at maturity in 2027. This obligation will be settled upon maturity utilizing liquid assets that have been placed into a trust established strictly for this purpose. The trust is presented as "Restricted investment" on the consolidated balance sheets in the amount of $84.4 million as of December 31, 2025, see Note 5 for more information. The remaining obligation of $18.9 million, at December 31, 2025, is primarily owed to the lessor of our corporate headquarters in North Charleston, South Carolina. The lease commenced in July 2020, with a term of 15 years, and is structured as a traditional rental with payments due on a monthly basis.
We also have a finance lease obligation due in 2031 for certain assets located at our Performance Materials' Waynesboro, Georgia, manufacturing plant. The lease is with the Development Authority of Burke County ("Authority"). The Authority established the sale-leaseback of these assets by issuing an industrial development revenue bond. The bond was purchased by Ingevity and the obligations under the finance lease remain with Ingevity. Accordingly, we offset the finance lease obligation and bond on our consolidated balance sheets.
Components of lease cost are as follows:
| Years Ended December 31, | |||||||||||||||||||||||
| In millions | Financial Statement Caption | 2025 | 2024 | 2023 | |||||||||||||||||||
Operating lease cost (1) | |||||||||||||||||||||||
| Cost of sales | $ | 14.4 | $ | 16.7 | $ | 17.3 | |||||||||||||||||
| Selling, general, and administrative expenses | 1.1 | 1.3 | 1.2 | ||||||||||||||||||||
| Finance lease cost | |||||||||||||||||||||||
| Amortization of leased assets | Cost of sales | $ | 2.5 | $ | 3.2 | $ | 3.2 | ||||||||||||||||
| Selling, general, and administrative expenses | 1.6 | 1.6 | 1.6 | ||||||||||||||||||||
| Interest on lease liabilities | Interest expense | 7.2 | 7.3 | 7.3 | |||||||||||||||||||
Net lease cost (2) | $ | 26.8 | $ | 30.1 | $ | 30.6 | |||||||||||||||||
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(1) Includes short-term leases and variable lease costs, which are immaterial.
(2) Only on the rare occasion do we sublease our leased assets; as a result, this amount excludes sublease income which is immaterial.
Maturity of Lease Liabilities
| December 31, 2025 | |||||||||||||||||
| In millions | Operating leases | Finance leases | Total | ||||||||||||||
| 2026 | $ | 13.2 | $ | 8.4 | $ | 21.6 | |||||||||||
| 2027 | 9.8 | 85.4 | 95.2 | ||||||||||||||
| 2028 | 6.2 | 2.4 | 8.6 | ||||||||||||||
| 2029 | 3.5 | 2.5 | 6.0 | ||||||||||||||
| 2030 | 1.7 | 2.5 | 4.2 | ||||||||||||||
| 2031 and thereafter | 1.6 | 12.7 | 14.3 | ||||||||||||||
| Total lease payments | $ | 36.0 | $ | 113.9 | $ | 149.9 | |||||||||||
| Less: Interest | 1.8 | 15.1 | 16.9 | ||||||||||||||
Present value of lease liabilities (1) | $ | 34.2 | $ | 98.8 | $ | 133.0 | |||||||||||
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(1) As of December 31, 2025, we have zero operating lease commitments that have not yet commenced related to manufacturing and office equipment leases.
Lease Term and Discount Rate
| December 31, | |||||||||||
| In millions, except percentages and years | 2025 | 2024 | |||||||||
| Weighted-average remaining lease term (years) | |||||||||||
| Operating leases | 3.5 | 4.0 | |||||||||
| Finance leases | 9.9 | 10.9 | |||||||||
| Weighted-average discount rate | |||||||||||
| Operating leases | 6.02 | % | 5.95 | % | |||||||
| Finance leases | 5.45 | % | 5.44 | % | |||||||
Other Information - Inclusive of continuing and discontinued operations
| Years Ended December 31, | |||||||||||||||||
| In millions | 2025 | 2024 | 2023 | ||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from operating leases | $ | 19.5 | $ | 21.7 | $ | 22.5 | |||||||||||
| Operating cash flows from finance leases | 7.2 | 7.3 | 7.3 | ||||||||||||||
| Financing cash flows from finance leases | 1.3 | 1.0 | 0.7 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 2, 2017 | |
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.