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LEASES
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
LEASES LEASES
The Company leases retail stores, manufacturing and distribution facilities, office space and equipment under operating and finance lease agreements. Operating leases are included in Operating lease right-of-use (ROU) assets, Current portion of operating lease liabilities and Long-term operating lease liabilities and finance leases are included in Other assets, Other accruals and Other long-term liabilities on the Consolidated Balance Sheets. The majority of the operating lease ROU asset and lease liability balances are related to the retail operations of the Paint Stores Group. The majority of the finance lease ROU asset and lease liability balances are related to a distribution facility within the Consumer Brands Group. Most leases include one or more options to renew. The exercise of lease renewal options is at the Company’s discretion and is not reasonably certain at lease commencement.
Operating and finance lease ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term. Most leases do not contain an incremental borrowing rate which is readily determinable from their associated contract. Therefore, the Company uses its estimated incremental borrowing rate on a collateralized basis which is derived from information available at the lease commencement date, giving consideration to publicly available credit rating data, other risk characteristics and the term of the lease in determining the present value of lease payments.
The Company does not account for lease and non-lease components of contracts separately for any underlying asset class. Some leases have variable payments, however, because they are not based on an index or rate, they are excluded from ROU assets and lease liabilities. Variable payments for real estate leases relate primarily to common area maintenance, insurance, taxes and utilities associated with the properties. Variable payments for equipment leases relate primarily to hours, miles or other quantifiable usage factors which are not determinable at the time the lease agreement is entered into by the Company. The Company has made an accounting policy election by underlying asset class to not apply the recognition requirements of ASC 842 to short-term leases. As a result, certain leases with a term of 12 months or less are not recorded on the Consolidated Balance Sheets and expense is recognized on a straight-line basis over the lease term.
Additional lease information is summarized below:
202520242023
Components of Lease Expense
Operating lease cost
$591.7 $562.4 $528.5 
Finance lease cost:
Amortization of right-of-use assets$4.4 $0.7 $— 
Interest on lease liabilities10.8 1.5 — 
Total$15.2 $2.2 $— 
Short-term lease cost $80.2 $69.6 $58.5 
Variable lease cost$120.4 $132.1 $104.1 
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$576.9 $545.5 $513.8 
Operating cash outflows from finance leases6.0 0.2 — 
Financing cash outflows from finance leases0.6 0.2 — 
Leased assets obtained in exchange for new lease liabilities:
Operating leases$550.0 $526.9 $473.3 
Finance leases1.5 188.2 — 
202520242023
Supplemental Balance Sheet Information
Operating Leases:
Operating lease right-of-use assets$1,995.2 $1,953.8 $1,887.4 
Current portion of operating lease liabilities479.8 466.6 449.3 
Long-term operating lease liabilities1,591.5 1,558.3 1,509.5 
Finance Leases:
Other assets$184.5 $187.5 $— 
Other accruals0.7 3.7 — 
Other long-term liabilities194.7 185.6 — 
Other Supplemental Information
Weighted average remaining lease term:
Operating leases5.6 years5.5 years5.5 years
Finance leases43.0 years43.4 years
Weighted average discount rate:
Operating leases4.5 %4.2 %3.8 %
Finance leases5.7 %5.5 %
The following table reconciles the undiscounted cash flows for each of the next five years and thereafter related to the operating and finance lease liabilities recognized on the Consolidated Balance Sheets as of December 31, 2025. The reconciliation excludes short-term leases that are not recorded on the Consolidated Balance Sheets.
Operating LeasesFinance Leases
2026$558.9 $11.9 
2027473.9 8.7 
2028382.1 8.9 
2029290.0 9.1 
2030202.9 9.4 
Thereafter434.2 600.7 
Total lease payments2,342.0 648.7 
Amount representing interest(270.7)(453.3)
Present value of lease liabilities$2,071.3 $195.4 
LEASES LEASES
The Company leases retail stores, manufacturing and distribution facilities, office space and equipment under operating and finance lease agreements. Operating leases are included in Operating lease right-of-use (ROU) assets, Current portion of operating lease liabilities and Long-term operating lease liabilities and finance leases are included in Other assets, Other accruals and Other long-term liabilities on the Consolidated Balance Sheets. The majority of the operating lease ROU asset and lease liability balances are related to the retail operations of the Paint Stores Group. The majority of the finance lease ROU asset and lease liability balances are related to a distribution facility within the Consumer Brands Group. Most leases include one or more options to renew. The exercise of lease renewal options is at the Company’s discretion and is not reasonably certain at lease commencement.
Operating and finance lease ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term. Most leases do not contain an incremental borrowing rate which is readily determinable from their associated contract. Therefore, the Company uses its estimated incremental borrowing rate on a collateralized basis which is derived from information available at the lease commencement date, giving consideration to publicly available credit rating data, other risk characteristics and the term of the lease in determining the present value of lease payments.
The Company does not account for lease and non-lease components of contracts separately for any underlying asset class. Some leases have variable payments, however, because they are not based on an index or rate, they are excluded from ROU assets and lease liabilities. Variable payments for real estate leases relate primarily to common area maintenance, insurance, taxes and utilities associated with the properties. Variable payments for equipment leases relate primarily to hours, miles or other quantifiable usage factors which are not determinable at the time the lease agreement is entered into by the Company. The Company has made an accounting policy election by underlying asset class to not apply the recognition requirements of ASC 842 to short-term leases. As a result, certain leases with a term of 12 months or less are not recorded on the Consolidated Balance Sheets and expense is recognized on a straight-line basis over the lease term.
Additional lease information is summarized below:
202520242023
Components of Lease Expense
Operating lease cost
$591.7 $562.4 $528.5 
Finance lease cost:
Amortization of right-of-use assets$4.4 $0.7 $— 
Interest on lease liabilities10.8 1.5 — 
Total$15.2 $2.2 $— 
Short-term lease cost $80.2 $69.6 $58.5 
Variable lease cost$120.4 $132.1 $104.1 
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$576.9 $545.5 $513.8 
Operating cash outflows from finance leases6.0 0.2 — 
Financing cash outflows from finance leases0.6 0.2 — 
Leased assets obtained in exchange for new lease liabilities:
Operating leases$550.0 $526.9 $473.3 
Finance leases1.5 188.2 — 
202520242023
Supplemental Balance Sheet Information
Operating Leases:
Operating lease right-of-use assets$1,995.2 $1,953.8 $1,887.4 
Current portion of operating lease liabilities479.8 466.6 449.3 
Long-term operating lease liabilities1,591.5 1,558.3 1,509.5 
Finance Leases:
Other assets$184.5 $187.5 $— 
Other accruals0.7 3.7 — 
Other long-term liabilities194.7 185.6 — 
Other Supplemental Information
Weighted average remaining lease term:
Operating leases5.6 years5.5 years5.5 years
Finance leases43.0 years43.4 years
Weighted average discount rate:
Operating leases4.5 %4.2 %3.8 %
Finance leases5.7 %5.5 %
The following table reconciles the undiscounted cash flows for each of the next five years and thereafter related to the operating and finance lease liabilities recognized on the Consolidated Balance Sheets as of December 31, 2025. The reconciliation excludes short-term leases that are not recorded on the Consolidated Balance Sheets.
Operating LeasesFinance Leases
2026$558.9 $11.9 
2027473.9 8.7 
2028382.1 8.9 
2029290.0 9.1 
2030202.9 9.4 
Thereafter434.2 600.7 
Total lease payments2,342.0 648.7 
Amount representing interest(270.7)(453.3)
Present value of lease liabilities$2,071.3 $195.4