The Company has non-cancelable operating lease arrangements for office and other space that expire at various dates through 2035. Certain of our office leases contain options to renew for one to three successive five-year periods beyond the initial term. For the majority of these leases we have concluded that we are not reasonably certain to exercise renewal options, therefore, the lease terms used to calculate those right-of-use assets and lease liabilities are not reflective of renewal options. The impact on our financial position from renewal options that have been recognized as part of our right-of-use assets and lease liabilities is immaterial.
The following table presents supplemental balance sheet information related to our operating leases:
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| (in millions) | | Balance Sheet Location | | December 31, 2025 | | December 31, 2024 |
| Assets | | | | | | |
| Operating lease right-of-use assets | | Other assets | | $ | 51.2 | | | $ | 54.6 | |
| Liabilities | | | | | | |
| Current operating lease liabilities | | Accrued expenses and other current liabilities | | 9.5 | | | 10.1 | |
| Non-current operating lease liabilities | | Other liabilities | | 54.0 | | | 60.4 | |
| Total lease liabilities | | | | $ | 63.5 | | | $ | 70.5 | |
The following table presents the weighted average remaining lease term and discount rate:
| | | | | | | | | | | | | | | | | |
| Operating leases | | | | December 31, 2025 | | December 31, 2024 | |
| Weighted average remaining term (in years) | | | | 7.7 | | 8.3 | |
| Weighted average discount rate | | | | 4.7 | % | | 4.7 | % | |
Maturities of our operating lease liabilities are as follows:
| | | | | | | | |
| (in millions) | | December 31, 2025 |
| 2026 | | $ | 12.0 | |
| 2027 | | 9.8 | |
| 2028 | | 9.3 | |
| 2029 | | 8.8 | |
| 2030 | | 8.0 | |
| Thereafter | | 27.5 | |
| Total lease payments | | $ | 75.4 | |
| Less: Imputed interest | | (11.9) | |
| Total lease obligations | | $ | 63.5 | |
| Less: Current portion of lease obligations | | (9.5) | |
| Long-term lease obligations | | $ | 54.0 | |
We recognized $11.3 million, $14.0 million, and $15.6 million of operating lease expense during 2025, 2024 and 2023, respectively, which is net of immaterial sublease income and includes expense associated with leases with a term of twelve months or less, variable lease costs, and immaterial right-of-use asset impairments. Operating lease expense is classified as general and administrative expenses on our consolidated statements of operations.
The following table presents supplemental cash flow and other information related to our leases:
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| (in millions) | December 31, 2025 | | December 31, 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | |
| Operating cash flows from operating leases | $ | 10.5 | | | $ | 11.8 | |
| | | |
| Non-cash transactions: | | | |
| Right-of-use assets obtained in exchange for lease liabilities | $ | 2.3 | | | $ | 6.7 | |
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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.