SPX Technologies, Inc.SPXC
SPX Technologies, Inc. Leases Disclosure
Leases
Summarized below is our policy under, as well as the various other disclosures required by, ASC 842.
We have elected to account for lease agreements with lease and non-lease components as a single component for all leases. Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term.
We review if an arrangement is a lease at inception and conclude whether the contract contains an identified asset if we have the right to obtain substantially all the economic benefit and direct the use of the asset. Operating leases with right-of-use (“ROU”) assets are reflected within “Other assets,” “Accrued expenses,” and “Other long-term liabilities” within our consolidated balance sheets. Finance leases are included in “Property, plant and equipment,” “Current maturities of long-term debt,” and “Long-term debt.”
ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and the related liabilities are recognized at commencement date based on the present value of lease payments over the lease term. These payments include renewal options when reasonably certain to be exercised, and exclude termination options. As none of our leases provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any prepaid lease payments and excludes lease incentives.
We have operating and finance leases for facilities, equipment, and vehicles. Our leases have remaining lease terms of 1 year to 10 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the lease within one year. We rent or sublease certain space within our facilities to third parties under operating leases, with the impact of these lease arrangements being immaterial to our consolidated financial statements.
The components of lease expense were as follows:
| Year Ended | |||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||
Operating lease cost (1) | $ | 19.7 | $ | 16.5 | $ | 15.7 | |||||||||||
| Variable lease cost | 0.8 | 0.4 | 0.4 | ||||||||||||||
| Finance lease cost: | |||||||||||||||||
| Amortization of right-of-use assets | $ | 0.2 | $ | 0.4 | $ | 0.5 | |||||||||||
| Interest on lease liabilities | — | — | — | ||||||||||||||
| Total finance lease cost | $ | 0.2 | $ | 0.4 | $ | 0.5 | |||||||||||
__________________________
(1) Includes short-term lease cost of $3.3, $2.9 and $3.5, for the years ended December 31, 2025, 2024, and 2023, respectively.
Supplemental cash flow information related to leases is as follows:
| Year Ended | |||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows used in operating leases | $ | 16.1 | $ | 13.5 | $ | 12.1 | |||||||||||
| Operating cash flows from finance leases | — | — | — | ||||||||||||||
| Financing cash flows used in finance leases | 0.2 | 0.4 | 0.5 | ||||||||||||||
| Non-cash activities: | |||||||||||||||||
| Operating lease right-of-use assets obtained in exchange for new lease obligations | 23.6 | 27.7 | 6.3 | ||||||||||||||
| Finance lease right-of-use assets obtained in exchange for new lease obligations | 0.1 | 1.1 | 0.3 | ||||||||||||||
Supplemental balance sheet information related to leases was as follows:
| As of December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Operating leases: | Affected Line Item in the Consolidated Balance Sheets | |||||||||||||
| Operating lease ROU assets | $ | 76.8 | $ | 57.9 | ||||||||||
| Operating lease current liabilities | $ | 14.4 | $ | 11.1 | ||||||||||
| Operating lease non-current liabilities | 61.4 | 44.5 | ||||||||||||
| Total operating lease liabilities | $ | 75.8 | $ | 55.6 | ||||||||||
| Finance leases: | ||||||||||||||
| Finance lease assets | $ | 1.2 | $ | 1.2 | ||||||||||
| Finance lease current liabilities | $ | 0.4 | $ | 0.3 | ||||||||||
| Finance lease non-current liabilities | 0.7 | 0.9 | ||||||||||||
| Total finance lease liabilities | $ | 1.1 | $ | 1.2 | ||||||||||
The weighted-average remaining lease terms (years) of our leases as of December 31, 2025 and 2024, were as follows:
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Operating leases | 6.1 | 5.8 | |||||||||
| Finance leases | 2.9 | 3.3 | |||||||||
The discount rate utilized to determine the present value of lease payments over the lease term is our incremental borrowing rate based on the information available at lease commencement date. In developing the incremental borrowing rate, we consider the interest rate that reflects a term similar to the underlying lease term on a fully collateralized basis. We apply the incremental borrowing rate at a consolidated portfolio level using a five-year term, as the results did not materially differ upon further stratification. The weighted-average discount rate for our operating leases was 4.4% and 4.1% at December 31, 2025 and 2024, respectively, and finance leases was 4.9% at December 31, 2025 and 2024.
The future minimum payments under our operating and finance leases were as follows as of December 31, 2025:
| Operating Leases | Finance Leases | Total | |||||||||||||||
| Next 12 months | $ | 17.4 | $ | 0.4 | $ | 17.8 | |||||||||||
| 12 to 24 months | 17.0 | 0.4 | 17.4 | ||||||||||||||
| 24 to 36 months | 16.0 | 0.2 | 16.2 | ||||||||||||||
| 36 to 48 months | 14.5 | 0.2 | 14.7 | ||||||||||||||
| 48 to 60 months | 8.1 | — | 8.1 | ||||||||||||||
| Thereafter | 14.9 | — | 14.9 | ||||||||||||||
| Total lease payments | 87.9 | 1.2 | 89.1 | ||||||||||||||
| Less imputed interest | 12.1 | 0.1 | 12.2 | ||||||||||||||
| Total | $ | 75.8 | $ | 1.1 | $ | 76.9 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 14, 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.