NOTE 11. LEASES

Our metals service center leases are comprised of processing and distribution facilities, equipment, automobiles, trucks and trailers, ground leases and other leased spaces, such as depots, sales offices, and storage. We also lease various office spaces. Our leases of facilities and other spaces expire at various times through 2045, and our ground leases expire at various times through 2068. Nearly all of our leases are operating leases; we have an insignificant amount of recognized finance right-of-use assets and obligations.

The following is a summary of our lease cost (in millions):

Year Ended December 31,

2025

  ​ ​

2024

  ​ ​

2023

Operating lease cost

$

86.3

$

75.1

$

68.8

Variable fees and other(1)

28.1

30.9

28.6

Total lease cost

$

114.4

$

106.0

$

97.4

(1)Includes variable lease payments and costs of short-term leases.

Supplemental cash flow and balance sheet information is presented below (in millions):

Year Ended December 31,

2025

  ​ ​

2024

  ​ ​

2023

Supplemental cash flow information:

Cash payments for operating leases                 

$

113.2

$

74.8

$

95.2

Right-of-use assets obtained in exchange for operating lease obligations

$

112.6

$

87.7

$

74.7

December 31,

2025

2024

Other lease information:

Weighted average remaining lease term—operating leases

6.4 years

6.3 years

Weighted average discount rate—operating leases

4.9%

4.6%

Maturities of operating lease liabilities as of December 31, 2025 are as follows (in millions):

2026

$

81.4

2027

70.2

2028

59.1

2029

49.9

2030

36.6

Thereafter

78.0

Total operating lease payments

375.2

Less: imputed interest

(56.6)

Total operating lease liabilities

$

318.6

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 29, 2024
2022Feb 28, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 27, 2020

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.