Leases (Notes)

3 Months Ended

Mar. 31, 2025

Leases

The company has operating leases for corporate offices. The operating leases have remaining lease terms of up to 13 years, some of which include options to extend or renew the leases for up to an additional five years, and some of which include options to early terminate the leases in less than 12 months. Management evaluates whether these options are exercisable at least quarterly in order to determine whether the contract term must be reassessed. For a small number of the leases, primarily the international locations, management’s approach is to enter into short-term leases for a lease term of 12 months or less in order to provide for greater flexibility in the local environment. For certain office spaces, the company has entered into arrangements to sublease excess space to third parties, while the original lease contract remains in effect with the landlord.

The company also has one finance lease, which is related to the sale of our data center in March 2016. In connection with the sale, the company leased back a portion of the property. The transaction was recognized under the financing method and not as a sale leaseback arrangement.

The right-of-use lease asset is recorded within other assets, and the present value of the lease liability is recorded within other liabilities (segregated between short term and long term) on the consolidated balance sheets. The discount rate applied to the lease payments represents the company’s incremental borrowing rate.

The components of lease costs were as follows:


	Quarter Ended March 31,
(in millions)		2025		2024
Operating lease expense:
Operating lease cost		$	9.7	$	13.0
Short-term lease cost		0.1		0.1
Total operating lease expense included in other expense		$	9.8	$	13.1

Finance lease expense:
Interest expense		$	0.5	$	0.6
Depreciation expense		2.2		2.2
Total finance lease expense		$	2.7	$	2.8

Sublease revenue included in other revenue		$	2.9	$	2.3

Supplemental cash flow information related to leases was as follows:


	Quarter Ended March 31,
(in millions)		2025		2024
Cash outflows for operating leases		$	15.1	$	15.2
Cash outflows for finance leases		4.4		4.3

Supplemental balance sheet information related to leases was as follows:

Operating leases


(in millions)	March 31, 2025			December 31, 2024
Operating lease right-of-use assets	$	224.4		$	231.1

Operating lease liabilities:
Other current liabilities	$	43.5		$	44.7
Other liabilities	276.3			289.3
Total operating lease liabilities	$	319.8		$	334.0



Weighted average remaining lease term (in months)	105			106
Weighted average discount rate	4.2		%	4.2		%

Finance leases


(in millions)	March 31, 2025			December 31, 2024
Finance lease right-of-use assets	$	52.0		$	54.2

Finance lease liabilities:
Other current liabilities	$	8.8		$	8.7
Other liabilities	48.5			50.7
Total finance lease liabilities	$	57.3		$	59.4

Weighted average remaining lease term (in months)	72			75
Weighted average discount rate	3.5		%	3.5		%

Future minimum lease payments were as follows as of March 31, 2025 for operating and finance leases:


(in millions)	Operating Leases
Remainder of 2025	$	43.2
2026	54.0
2027	46.9
2028	45.5
2029	35.9
2030	35.3
Thereafter	118.2
Total lease payments	379.0
Less: imputed interest	(59.2)
Present value of lease liability	$	319.8


(in millions)	Finance Leases
Remainder of 2025	$	13.1
2026	17.6
2027	17.8
2028	17.9
2029	18.1
2030	18.3
Thereafter	4.6
Total lease payments	107.4
Less: imputed interest	(50.1)
Present value of lease liability	$	57.3