Leases
For the years ended December 31, 2025, December 31, 2024 and December 31, 2023, lease expense (including immaterial short-term and variable lease costs) was as follows:
| | | | | | | | | | | | | | | | | |
| For the years ended |
| December 31, 2025 | | December 31, 2024 | | December 31, 2023 |
| (In millions) |
| Operating lease expense | $ | 91.4 | | | $ | 86.9 | | | $ | 81.3 | |
| Finance lease expense | 14.1 | | | 10.3 | | | 9.5 | |
| Total lease expense | $ | 105.5 | | | $ | 97.2 | | | $ | 90.8 | |
Supplemental cash flow information related to leases for the years ended December 31, 2025, December 31, 2024 and December 31, 2023, was as follows: | | | | | | | | | | | | | | | | | |
| For the years ended |
| December 31, 2025 | | December 31, 2024 | | December 31, 2023 |
| (In millions) |
| Cash paid for amounts included in the measurements of lease liabilities | | | | | |
| Operating cash flows for operating leases | $ | 65.9 | | | $ | 51.6 | | | $ | 58.7 | |
| Operating cash flows for finance leases | $ | 4.1 | | | $ | 3.8 | | | $ | 3.3 | |
| Financing cash flows for finance leases | $ | 11.2 | | | $ | 6.7 | | | $ | 5.1 | |
| Supplemental non-cash information on right-of-use assets obtained in exchange for new lease liabilities | | | | | |
| Operating leases | $ | 39.6 | | | $ | 49.0 | | | $ | 115.7 | |
| Finance leases | $ | 11.2 | | | $ | 26.3 | | | $ | 1.7 | |
Supplemental balance sheet information related to leases as of December 31, 2025 and December 31, 2024 was as follows: | | | | | | | | | | | | | | |
| | As of |
| | December 31, 2025 | | December 31, 2024 |
| Balance Sheet Classification | (In millions) |
| Operating Leases | | | | |
| Operating lease right-of-use assets | Other assets | $ | 194.0 | | | $ | 189.0 | |
| Current operating lease liabilities | Accounts payable and other current liabilities | $ | 52.8 | | | $ | 46.7 | |
| Non-current operating lease liabilities | Other liabilities | 160.1 | | | 161.5 | |
| Total operating lease liabilities | | $ | 212.9 | | | $ | 208.2 | |
| | | | |
| Finance Leases | | | | |
| Finance lease right-of-use assets | Property, plant and equipment, net | $ | 60.6 | | | $ | 58.4 | |
| Current finance lease liabilities | Current portion of long-term debt and short-term borrowings | $ | 10.7 | | | $ | 9.9 | |
| Non-current finance lease liabilities | Long-term debt | 54.0 | | | 56.9 | |
| Total finance lease liabilities | | $ | 64.7 | | | $ | 66.8 | |
The weighted-average remaining lease term and discount rate as of December 31, 2025 were as follows: | | | | | | | | | | | |
| Weighted-Average Remaining Lease Term (Years) | | Weighted-Average Discount Rate |
| Operating leases | 6.5 | | 5.2% |
| Finance leases | 7.6 | | 7.3% |
Based on foreign exchange rates as of December 31, 2025, maturities of lease liabilities were as follows:
| | | | | | | | | | | |
| Operating Leases | | Finance Leases |
| (In millions) |
| 2026 | $ | 68.3 | | | $ | 12.2 | |
| 2027 | 46.1 | | | 11.2 | |
| 2028 | 31.8 | | | 10.7 | |
| 2029 | 23.2 | | | 10.0 | |
| 2030 | 18.2 | | | 7.3 | |
| Thereafter | 70.0 | | | 30.9 | |
| Total lease payments | $ | 257.6 | | | $ | 82.3 | |
| Less: interest | (44.7) | | | (17.6) | |
| Present value of lease liabilities | $ | 212.9 | | | $ | 64.7 | |
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.