LEASES
We lease certain assets, principally warehouse facilities and computer equipment, under agreements that expire at various dates through the year ended December 31, 2040. Certain leases contain provisions for renewal and purchase options and require us to pay various related expenses. Rent expense under all leases was $51.0 million, $51.3 million, and $51.4 million for the years ended December 31, 2025, December 31, 2024, and December 31, 2023, respectively.
The balance sheet locations of our lease assets and liabilities were as follows (in millions):
| | | | | | | | | | | | | | | | | | | | |
| Assets | | Balance Sheet Location | | December 31, 2025 | | December 31, 2024 |
| Operating | | Operating lease assets | | $ | 167.8 | | | $ | 175.2 | |
| Finance | | Other non-current assets | | 11.5 | | | 11.7 | |
| Total | | | | $ | 179.3 | | | $ | 186.9 | |
| | | | | | | | | | | | | | | | | | | | |
| Liabilities | | Balance Sheet Location | | December 31, 2025 | | December 31, 2024 |
| Current | | | | | | |
| Operating | | Other accrued liabilities | | $ | 25.7 | | | $ | 27.8 | |
| Finance | | Current indebtedness | | 1.8 | | | 1.5 | |
| Non-Current | | | | | | |
| Operating | | Other non-current liabilities | | 151.5 | | | 153.8 | |
| Finance | | Long-term debt, less current portion | | 11.5 | | | 12.0 | |
| Total | | | | $ | 190.5 | | | $ | 195.1 | |
The below tables show our lease assets and liabilities by reporting segment (in millions):
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Assets | |
| | Operating | | Financing |
| | December 31, 2025 | | December 31, 2024 | | December 31, 2025 | | December 31, 2024 | |
| CSCA | | $ | 92.2 | | | $ | 90.5 | | | $ | 11.0 | | | $ | 11.5 | | |
| CSCI | | 29.9 | | | 31.0 | | | 0.1 | | | — | | |
| | | | | | | | | |
| | | | | | | | | |
| Unallocated | | 45.7 | | | 53.7 | | | 0.4 | | | 0.2 | | |
| Total | | $ | 167.8 | | | $ | 175.2 | | | $ | 11.5 | | | $ | 11.7 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Liabilities | | |
| | | Operating | | | | Financing | | |
| | | December 31, 2025 | | December 31, 2024 | | | | December 31, 2025 | | December 31, 2024 | | |
| CSCA | | | $ | 97.9 | | | $ | 94.1 | | | | | $ | 12.8 | | | $ | 13.1 | | | |
| CSCI | | | 34.4 | | | 36.7 | | | | | 0.2 | | | 0.2 | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Unallocated | | | 44.9 | | | 50.8 | | | | | 0.3 | | | 0.2 | | | |
| Total | | | $ | 177.2 | | | $ | 181.6 | | | | | $ | 13.3 | | | $ | 13.5 | | | |
Expenses related to leases were as follows (in millions):
| | | | | | | | | | | | | | | | | |
| Year Ended |
| December 31, 2025 | | December 31, 2024 | | December 31, 2023 |
Operating leases(1) | $ | 48.7 | | | $ | 49.0 | | | $ | 45.1 | |
| | | | | |
| Finance leases | | | | | |
| Amortization | $ | 2.3 | | | $ | 2.3 | | | $ | 6.3 | |
| Interest | 0.5 | | | 0.5 | | | 0.6 | |
| Total finance leases | $ | 2.8 | | | $ | 2.8 | | | $ | 6.9 | |
(1) Includes short-term leases and variable lease costs, which are immaterial.
The annual future maturities of our leases as of December 31, 2025 are as follows (in millions):
| | | | | | | | | | | | | | | | | | | | |
| | Operating Leases | | Finance Leases | | Total |
| 2026 | | $ | 31.5 | | | $ | 2.1 | | | $ | 33.6 | |
| 2027 | | 30.4 | | | 1.8 | | | 32.2 | |
| 2028 | | 24.7 | | | 1.8 | | | 26.5 | |
| 2029 | | 20.8 | | | 1.7 | | | 22.5 | |
| 2030 | | 15.5 | | | 1.6 | | | 17.1 | |
| After 2030 | | 85.3 | | | 5.7 | | | 91.0 | |
| Total lease payments | | 208.2 | | | 14.7 | | | 222.9 | |
| Less: Interest | | 31.0 | | | 1.4 | | | 32.4 | |
| Present value of lease liabilities | | $ | 177.2 | | | $ | 13.3 | | | $ | 190.5 | |
Our weighted average lease terms and discount rates are as follows:
| | | | | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 |
| Weighted-average remaining lease term (in years) | | | | |
| Operating leases | | 8.99 | | 9.54 |
| Finance leases | | 7.85 | | 9.01 |
| Weighted-average discount rate | | | | |
| Operating leases | | 4.00 | % | | 3.88 | % |
| Finance leases | | 3.50 | % | | 3.44 | % |
Our lease cash flow classifications are as follows (in millions):
| | | | | | | | | | | | | | |
| | Year Ended |
| | December 31, 2025 | | December 31, 2024 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | |
| Operating cash flows for operating leases | | $ | 37.0 | | | $ | 35.5 | |
| Operating cash flows for finance leases | | $ | 0.5 | | | $ | 0.5 | |
| Financing cash flows for finance leases | | $ | 2.3 | | | $ | 2.0 | |
| | | | |
| Leased assets obtained (used) in exchange for new finance lease liabilities | | $ | 1.4 | | | $ | 0.4 | |
| Leased assets obtained (used) in exchange for new operating lease liabilities | | $ | 21.5 | | | $ | 29.4 | |
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.