Note 23. Leases
The following table presents the components of lease expense:
| | | | | | | | | | | | | | | | | | | | |
| Year ended December 31, | | 2025 | | 2024 | | 2023 |
| Operating lease cost | | $ | 260.1 | | | $ | 250.8 | | | $ | 192.1 | |
| Finance lease cost | | | | | | |
| Amortization of leased assets | | 19.2 | | | 12.5 | | | 11.3 | |
| Interest on lease liabilities | | 4.5 | | | 1.7 | | | 1.3 | |
| Short-term lease cost | | 11.5 | | | 12.6 | | | 17.0 | |
| Sublease income | | (3.5) | | | (1.0) | | | (0.6) | |
| | $ | 291.8 | | | $ | 276.6 | | | $ | 221.1 | |
The Company's leases relate primarily to property, yard equipment, vehicles and office equipment.
Operating Leases
The majority of the leases have a fixed term with a remaining life of one month to 20 years. The leases have varying contract terms, escalation clauses and renewal options. Generally, there are no restrictions placed upon the lessee by entering into these leases, other than restrictions on use of property, sub-letting and alterations. The Company has not included any purchase options in the measurement of its operating lease balances.
The future aggregate minimum lease payments under non-cancellable operating leases are as follows:
| | | | | |
| 2026 | $ | 211.1 | |
| 2027 | 216.9 | |
| 2028 | 207.6 | |
| 2029 | 195.2 | |
| 2030 | 174.6 | |
| Thereafter | 1,179.7 | |
| Total future minimum lease payments | 2,185.1 | |
| Less: imputed interest | (600.1) | |
| Total operating lease liabilities | 1,585.0 | |
| Less: current operating lease liabilities | (128.2) | |
| Long-term operating lease liabilities | $ | 1,456.8 | |
At December 31, 2025, the weighted-average remaining lease term for operating leases is 11.3 years (December 31, 2024: 11.8 years) and the weighted-average discount rate is 5.5% (December 31, 2024: 5.6%). There are no additional undiscounted commitments for leases not yet commenced at December 31, 2025 (December 31, 2024: nil).
Finance Leases
The majority of the leases have a fixed term with a remaining life of one month to five years. In certain of these leases, the Company has the option to purchase the leased asset at fair market value or a stated residual value at the end of the lease term. Renewal options are included in the measurement of lease balances to they extent they are reasonably certain of exercise.
Property, plant, and equipment includes the following finance lease assets:
| | | | | | | | | | | | | | | | | | | | |
| At December 31, 2025 | | Cost | | Accumulated
depreciation | | Net book
value |
| Property | | $ | 24.1 | | | $ | — | | | $ | 24.1 | |
| Vehicles | | 35.7 | | | (18.0) | | | 17.7 | |
| Computer equipment | | 13.6 | | | (10.8) | | | 2.8 | |
| Yard and other equipment | | 76.1 | | | (19.4) | | | 56.7 | |
| | $ | 149.5 | | | $ | (48.2) | | | $ | 101.3 | |
| | | | | | | | | | | | | | | | | | | | |
| At December 31, 2024 | | Cost | | Accumulated depreciation | | Net book
value |
| Vehicles | | $ | 32.8 | | | $ | (16.6) | | | $ | 16.2 | |
| Computer equipment | | 14.3 | | | (9.9) | | | 4.4 | |
| Yard and other equipment | | 38.5 | | | (10.0) | | | 28.5 | |
| | $ | 85.6 | | | $ | (36.5) | | | $ | 49.1 | |
The future aggregate minimum lease payments under non-cancellable finance leases are as follows:
| | | | | |
| 2026 | $ | 28.0 | |
| 2027 | 45.8 | |
| 2028 | 20.1 | |
| 2029 | 14.9 | |
| 2030 | 4.7 | |
| Total future minimum lease payments | 113.5 | |
| Less: imputed interest | (11.9) | |
| Total finance lease liabilities | 101.6 | |
| Less: current finance lease liabilities | (22.1) | |
| Long-term finance lease liabilities | $ | 79.5 | |
At December 31, 2025, the weighted-average remaining lease term for finance leases is 3.3 years (December 31, 2024: 3.9 years) and the weighted-average discount rate is 6.1% (December 31, 2024: 6.1%).
Subleases
At December 31, 2025, the total future minimum sublease payments expected to be received under non-cancellable subleases is $5.0 million (December 31, 2024: $6.4 million).