LeasesThe Company’s operating leases are primarily for real property in support of our business operations. Although many of our leases contain renewal options, we generally are not reasonably certain to exercise these options at the commencement date. Accordingly, renewal options are generally not included in the lease term for determining the right-of-use (“ROU”) asset and lease liability at commencement. Variable lease payments generally depend on an inflation-based index and such payments are not included in the original estimate of the lease liability. These variable lease payments are not material.
For the years ended December 31, 2025, 2024, and 2023, the Company recognized $60.1, $53.9, and $50.6 of operating lease expense, respectively.
The following table presents the supplemental cash flow information related to the Company’s operating leases for the years ended December 31:
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Operating cash flows used for operating leases | $ | 59.0 | | | $ | 53.6 | | | $ | 50.6 | |
| Right-of-use assets obtained in exchange for operating lease obligations | $ | 77.5 | | | $ | 52.4 | | | $ | 29.6 | |
The following table presents the lease balances within the Consolidated Balance Sheets related to the Company’s operating leases as of December 31:
| | | | | | | | | | | | | | | | | | | | |
| Lease assets and liabilities | | Balance sheet account | | 2025 | | 2024 |
| ASSETS: | | | | | | |
| Operating lease ROU assets | | Other assets | | $ | 220.0 | | | $ | 189.4 | |
| | | | | | |
| LIABILITIES: | | | | | | |
| Current operating lease liabilities | | Other accrued liabilities | | 48.3 | | | 46.2 | |
| Operating lease liabilities | | Other liabilities | | 185.2 | | | 154.8 | |
| Total operating lease liabilities | | | | $ | 233.5 | | | $ | 201.0 | |
Future minimum lease payments under non-cancellable leases were as follows:
| | | | | |
| 2026 | $ | 56.1 | |
| 2027 | 49.7 | |
| 2028 | 40.6 | |
| 2029 | 31.3 | |
| 2030 | 23.9 | |
| Thereafter | 65.5 | |
| Total operating lease payments | 267.1 | |
| Less: Imputed interest | (33.6) | |
| Total operating lease liabilities | $ | 233.5 | |
| | | | | |
| Weighted average remaining lease term – operating leases (years) | 6.6 |
| Weighted average discount rate (%) | 4.3 | |
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.