We lease certain buildings and equipment under various noncancellable operating lease agreements. In addition, we have sub-lease agreements on a limited number of our building lease agreements. We have the option to renew the majority of our building leases and equipment leases at the end of the lease term at the fair rental value at the time of renewal.
We do not have any lease agreements or sub-lease agreements that contain variable lease payments. In addition, we do not have lease agreements or sub-lease agreements that contain residual value guarantees or impose any financial restrictions or covenants with the lessors.
Operating lease information is as follows: | | | | | | | | | | | | | | | | | |
| Year Ended December 31 |
| 2025 | | 2024 | | 2023 |
| (in millions of dollars) |
| Lease Cost | | | | | |
| Operating Lease Cost | $ | 17.8 | | | $ | 17.3 | | | $ | 16.4 | |
| Sublease Income | (2.3) | | | (1.7) | | | (1.5) | |
| Total Lease Cost | $ | 15.5 | | | $ | 15.6 | | | $ | 14.9 | |
| | | | | |
| Other Information | | | | | |
| Cash Paid for Amounts Included in the Measurement of Lease Liabilities | $ | 19.9 | | | $ | 20.7 | | | $ | 20.3 | |
| Weighted-Average Remaining Lease Term | 5 years | | 5 years | | 5 years |
| Weighted-Average Discount Rate | 5.14 | % | | 5.19 | % | | 4.85 | % |
As of December 31, 2025, aggregate undiscounted minimum lease payments and the reconciliation to our lease liability are as follows (in millions of dollars):
| | | | | | | | |
| 2026 | | $ | 22.4 | |
| 2027 | | 19.6 | |
| 2028 | | 17.6 | |
| 2029 | | 15.3 | |
| 2030 | | 6.3 | |
| 2031 and Thereafter | | 9.6 | |
| Total | | 90.8 | |
| Less Imputed Interest | | 11.9 | |
| Lease Liability | | $ | 78.9 | |
The right-of-use asset was $55.7 million and $45.1 million at December 31, 2025 and 2024, respectively.
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.