Leases
Information on the Company’s leases is summarized as follows (in millions):
| | | | | | | | | | | | | | | | | |
| | | As of December 31, |
| Classification | | 2025 | | 2024 |
| Assets | | | | | |
| Operating lease assets | Operating lease assets | | $ | 121.0 | | | $ | 127.2 | |
| Finance lease assets | Property and equipment, net (1) | | 4.9 | | | 5.4 | |
| Total lease assets | | | $ | 125.9 | | | $ | 132.6 | |
| Liabilities | | | | | |
| Current | | | | | |
| Operating lease liabilities | Other current liabilities | | $ | 28.1 | | | $ | 28.8 | |
| Finance lease liabilities | Current financing obligations | | 1.9 | | | 1.6 | |
| Long-term | | | | | |
| Operating lease liabilities | Other long-term liabilities | | 97.1 | | | 99.7 | |
| Finance lease liabilities | Long-term financing obligations | | 5.4 | | | 6.5 | |
| Total lease liabilities | | | $ | 132.5 | | | $ | 136.6 | |
(1) Finance lease assets are recorded net of accumulated amortization of $16.6 million and $13.2 million as of December 31, 2025 and 2024, respectively.
| | | | | | | | | | | | | | | | | |
| | | For the Years Ended December 31, |
| Lease Cost | Classification | | 2025 | | 2024 |
Operating lease cost (1) | Operating expenses and cost of sales | | $ | 51.9 | | | $ | 51.9 | |
| Finance lease cost | | | | | |
| Amortization of lease assets | Operating expenses and cost of sales | | 1.4 | | | 1.2 | |
| Interest on lease liabilities | Interest expense | | 0.4 | | | 0.5 | |
| Total lease cost | | | $ | 53.7 | | | $ | 53.6 | |
(1) Includes short-term leases and variable lease costs, which are immaterial.
| | | | | | | | | | | | | | | | | | | | |
| Maturity of Lease Liabilities | | Operating Leases(1) | | Finance Leases | | Total |
| 2026 | | $ | 33.3 | | $ | 2.2 | | $ | 35.5 |
| 2027 | | 28.5 | | 2.2 | | 30.7 |
| 2028 | | 23.2 | | 2.3 | | 25.5 |
| 2029 | | 19.6 | | 1.3 | | 20.9 |
| 2030 | | 14.9 | | — | | 14.9 |
| Thereafter | | 19.7 | | — | | 19.7 |
| Total lease payments | | $ | 139.2 | | $ | 8.0 | | $ | 147.2 |
| Less: interest | | 14.0 | | 0.7 | | |
| Present value of lease payments | | $ | 125.2 | | $ | 7.3 | | |
(1) As of December 31, 2025, minimum lease payments for leases signed but not yet commenced were not material. There were no options to extend lease terms that were reasonably certain of being exercised as of December 31, 2025.
| | | | | | | | | | | | | | |
| | As of December 31, |
| Lease Term and Discount Rate | | 2025 | | 2024 |
| Weighted-average remaining lease term (years) | | | | |
| Operating leases | | 5.30 | | 5.66 |
| Finance leases | | 3.58 | | 4.57 |
| Weighted-average discount rate | | | | |
| Operating leases | | 3.94 | % | | 3.56 | % |
| Finance leases | | 5.24 | % | | 5.23 | % |
| | | | | | | | | | | | | | |
| | For the Years Ended December 31, |
| Other Information | | 2025 | | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | |
| Operating cash flows from operating leases | | $ | 51.9 | | | $ | 51.9 | |
| Operating cash flows from finance leases | | 0.4 | | | 0.5 | |
| Financing cash flows from finance leases | | 1.7 | | | 1.6 | |
| Leased assets obtained in exchange for new operating lease liabilities | | 24.2 | | | 15.6 | |
| | | | |
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.