TENNANT CO Leases Disclosure
| Leases | Classification | 2025 | 2024 | |||||||||||
| Assets | ||||||||||||||
| Operating lease assets | Operating lease assets | $ | 56.9 | $ | 54.6 | |||||||||
| Finance lease assets | 1.1 | 1.1 | ||||||||||||
| Total leased assets | $ | 58.0 | $ | 55.7 | ||||||||||
| Liabilities | ||||||||||||||
| Current: | ||||||||||||||
| Operating | $ | 21.7 | $ | 18.5 | ||||||||||
| Finance | 0.4 | 0.5 | ||||||||||||
| Noncurrent: | ||||||||||||||
| Operating | Long-term operating lease liabilities | 35.5 | 36.3 | |||||||||||
| Finance | 0.7 | 0.7 | ||||||||||||
| Total lease liabilities | $ | 58.3 | $ | 56.0 | ||||||||||
(a) | Finance lease assets are recorded net of accumulated amortization of $0.8 million and $0.3 million, and as of December 31, 2025 and December 31, 2024, respectively. | ||||
| Lease Cost | 2025 | 2024 | 2023 | ||||||||||||||
Operating lease cost(a) | $ | 31.7 | $ | 30.1 | $ | 28.9 | |||||||||||
Finance lease cost(b) | 0.5 | 0.2 | 0.1 | ||||||||||||||
| Total lease cost | $ | 32.2 | $ | 30.3 | $ | 29.0 | |||||||||||
(a) | Includes short-term lease costs of $4.3 million, $6.2 million, and $5.9 million and variable lease costs of $3.0 million, $2.4 million and $4.2 million for the years ended December 31, 2025 and December 31, 2024, respectively. | ||||
(b) | Includes amortization of leased assets and interest on lease liabilities. | ||||
| Maturity of Lease Liabilities | Operating Leases | Finance Leases | Total | ||||||||||||||
| 2026 | $ | 24.3 | $ | 0.4 | $ | 24.7 | |||||||||||
| 2027 | 19.1 | 0.4 | 19.5 | ||||||||||||||
| 2028 | 11.2 | 0.3 | 11.5 | ||||||||||||||
| 2029 | 4.4 | 0.1 | 4.5 | ||||||||||||||
| 2030 | 1.6 | — | 1.6 | ||||||||||||||
| Thereafter | 2.1 | — | 2.1 | ||||||||||||||
| Total lease payments | $ | 62.7 | $ | 1.2 | $ | 63.9 | |||||||||||
| Less: Interest | (5.5) | (0.1) | (5.6) | ||||||||||||||
| Present value of lease liabilities | $ | 57.2 | $ | 1.1 | $ | 58.3 | |||||||||||
| Lease Term and Discount Rate | 2025 | 2024 | |||||||||
| Weighted-average remaining lease term (years): | |||||||||||
| Operating leases | 3.2 | 3.5 | |||||||||
| Finance leases | 3.2 | 4.0 | |||||||||
| Weighted-average discount rate: | |||||||||||
| Operating leases | 6.1% | 6.1% | |||||||||
| Finance leases | 5.6% | 5.2% | |||||||||
| Other Information | 2025 | 2024 | |||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
| Operating cash flows from operating leases | $ | 24.5 | $ | 21.3 | |||||||
| Operating cash flows from finance leases | 0.1 | — | |||||||||
| Financing cash flows from finance leases | 0.4 | 0.2 | |||||||||
| Lease assets obtained in exchange for new finance lease liabilities | 0.8 | 1.0 | |||||||||
| Lease assets obtained in exchange for new operating lease liabilities | 18.8 | 34.2 | |||||||||
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.