Leases
We have operating and finance leases for automobiles, machinery, equipment, warehouses, and office buildings. Our leases have remaining terms ranging from less than one year to twelve years, some of which include options to extend the leases from one to five years, and some of which include options to terminate the leases within one year.
Supplemental balance sheet information related to leases was as follows:
| | | | | | | | | | | | | | | | | |
| Classification | | December 31, 2025 | | December 31, 2024 |
| Lease assets | | | | | |
| Operating lease right-of-use assets, net | Assets | | $ | 24.0 | | | $ | 20.9 | |
| Finance lease right of use assets, net | Property, plant, and equipment, net | | 3.2 | | | 4.1 | |
| Total lease assets | | | $ | 27.2 | | | $ | 25.0 | |
| Lease liabilities | | | | | |
| Operating lease liabilities, current | Current liabilities | | $ | 3.9 | | | $ | 4.0 | |
| Operating lease liabilities, non-current | Non-current liabilities | | 24.2 | | | 20.8 | |
| Finance lease liabilities, current | Current portion of long-term debt | | 1.6 | | | 1.6 | |
| Finance lease liabilities, non-current | Long-term debt | | 1.8 | | | 2.7 | |
| Total lease liabilities | | | $ | 31.5 | | | $ | 29.1 | |
The components of lease costs included in our Consolidated Statements of Operations and Comprehensive Loss were as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating leases | | | | | |
| Operating lease costs | $ | 6.1 | | | $ | 6.4 | | | $ | 5.3 | |
| Variable lease costs | 1.4 | | | 0.9 | | | 0.3 | |
| Total operating lease costs | $ | 7.5 | | | $ | 7.3 | | | $ | 5.6 | |
| Finance leases | | | | | |
| Amortization of right-of-use asset | $ | 1.8 | | | $ | 1.7 | | | $ | 1.0 | |
| Total finance lease costs | $ | 1.8 | | | $ | 1.7 | | | $ | 1.0 | |
Maturities of lease liabilities as of December 31, 2025 are as follows:
| | | | | | | | | | | | | | | | | |
| Operating | | Finance | | Total |
| 2026 | $ | 6.3 | | | $ | 1.8 | | | $ | 8.1 | |
| 2027 | 5.4 | | | 1.1 | | | 6.5 | |
| 2028 | 4.7 | | | 0.4 | | | 5.1 | |
| 2029 | 4.0 | | | 0.2 | | | 4.2 | |
| 2030 | 3.8 | | | 0.2 | | | 4.0 | |
| Thereafter | 18.3 | | | 0.1 | | | 18.4 | |
| Total lease payments | 42.5 | | | 3.8 | | | 46.3 | |
| Less lease interest | (14.4) | | | (0.4) | | | (14.8) | |
| Total lease liabilities | $ | 28.1 | | | $ | 3.4 | | | $ | 31.5 | |
Additional information related to leases is presented as follows:
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Operating leases | | | |
| Weighted average remaining lease term | 9.0 years | | 10.0 years |
| Weighted average discount rate | 9.9% | | 10.0% |
| Finance leases | | | |
| Weighted average remaining lease term | 2.7 years | | 2.8 years |
| Weighted average discount rate | 8.9% | | 9.6% |
Supplemental cash flow information related to leases is presented as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | |
| Operating cash flows from operating leases | $ | 6.7 | | | $ | 6.4 | | | $ | 5.3 | |
| Financing cash flows from finance leases | 2.3 | | | 1.4 | | | 1.1 | |
| Total cash paid | $ | 9.0 | | | $ | 7.8 | | | $ | 6.4 | |
| Leased assets obtained in exchange for new operating lease liabilities | $ | 5.1 | | | $ | 0.5 | | | $ | 24.9 | |
| Leased assets obtained in exchange for new finance lease liabilities | 1.2 | | | 3.6 | | | 1.0 | |
| Right-of-use assets obtained in exchange for lease liabilities | $ | 6.3 | | | $ | 4.1 | | | $ | 25.9 | |
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.