Leases and commitments
The components of lease expense are as follows: | | | | | | | | | | | | | | | | | | | | |
| Year ended December 31, | | 2025 | | 2024 | | 2023 |
| Operating lease cost | | $ | 19.0 | | | $ | 22.8 | | | $ | 26.0 | |
| Finance lease cost | | | | | | |
| Amortization of right-of-use assets | | 1.3 | | | 0.1 | | | 0.2 | |
| Interest on lease liabilities | | 1.6 | | | — | | | — | |
| Total finance lease cost | | 2.9 | | | 0.1 | | | 0.2 | |
| Short-term lease costs | | 2.8 | | | 0.5 | | | 0.7 | |
| Variable lease cost | | 13.6 | | | 12.7 | | | 10.3 | |
| Sublease income | | (0.2) | | | (0.5) | | | (1.1) | |
| Total lease cost | | $ | 38.1 | | | $ | 35.6 | | | $ | 36.1 | |
Supplemental balance sheet information related to leases is as follows: | | | | | | | | | | | | | | |
| As of December 31, | | 2025 | | 2024 |
| Operating Leases | | | | |
| Operating lease right-of-use assets | | $ | 38.4 | | | $ | 38.4 | |
| Other accrued liabilities | | 16.0 | | | 15.0 | |
| Long-term operating lease liabilities | | 30.6 | | | 28.9 | |
| Total operating lease liabilities | | $ | 46.6 | | | $ | 43.9 | |
| | | | |
| Finance Leases | | | | |
Capitalized contract costs, net | | $ | 36.7 | | | $ | — | |
| Current maturities of long-term debt | | 7.2 | | | 0.5 | |
| Long-term debt | | 34.0 | | | 2.3 | |
| Total finance lease liabilities | | $ | 41.2 | | | $ | 2.8 | |
| | | | |
| Weighted-Average Remaining Lease Term (in years) | | | | |
| Operating leases | | 3.8 | | 3.9 |
| Finance leases | | 4.7 | | 4.6 |
| | | | |
| Weighted-Average Discount Rate | | | | |
| Operating leases | | 9.2 | % | | 9.1 | % |
| Finance leases | | 9.0 | % | | 6.1 | % |
Supplemental cash flow information related to leases is as follows:
| | | | | | | | | | | | | | | | | | | | |
| Years ended December 31, | | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | |
| Cash payments for operating leases included in operating activities | | $ | 20.3 | | | $ | 26.2 | | | $ | 31.5 | |
| Cash payments for finance leases included in financing activities | | 1.7 | | | 0.1 | | | 0.2 | |
| | | | | | |
ROU assets obtained in exchange for lease obligations are as follows:
| | | | | | | | | | | | | | |
| Years ended December 31, | | 2025 | | 2024 |
| Operating leases | | $ | 13.6 | | | $ | 21.3 | |
| Finance leases | | 39.2 | | | — | |
Maturities of lease liabilities as of December 31, 2025 are as follows:
| | | | | | | | | | | | | | |
| Year | | Finance Leases | | Operating Leases |
| 2026 | | $ | 10.8 | | | $ | 19.4 | |
| 2027 | | 10.8 | | | 12.0 | |
| 2028 | | 10.8 | | | 8.6 | |
| 2029 | | 10.5 | | | 6.5 | |
| 2030 | | 8.2 | | | 4.8 | |
| Thereafter | | — | | | 3.5 | |
| Total lease payments | | 51.1 | | | 54.8 | |
| Less imputed interest | | 9.9 | | | 8.2 | |
| Total | | $ | 41.2 | | | $ | 46.6 | |
For transactions where the company is considered the lessor, revenue for operating leases is recognized on a monthly basis over the term of the lease and for sales-type leases at the inception of the lease term. As of December 31, 2025, receivables under sales-type leases before the allowance for unearned income were collectible as follows:
| | | | | |
| Year | |
| 2026 | $ | 8.4 | |
| 2027 | 6.8 | |
| 2028 | 5.4 | |
| 2029 | 5.1 | |
| 2030 | — | |
| Thereafter | — | |
| Total | $ | 25.7 | |
Other Commitments
At December 31, 2025, the company had outstanding standby letters of credit and surety bonds totaling approximately $234 million related to performance and payment guarantees. On the basis of experience with these arrangements, the company believes that any obligations that may arise will not be material. In addition, at December 31, 2025, the company had deposits and collateral of approximately $5 million in other long-term assets, principally related to tax contingencies in Brazil.
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.