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Leases | 12 Months Ended
--- | ---
Dec. 31, 2025
Leases [Abstract] |
Leases | Leases As of December 31, 2025, we had leases primarily related to land, buildings, and machinery and equipment, with lease terms through 2269. Certain of our leases provide us with an option, exercisable at our sole discretion, to terminate the lease or extend the lease term for one year or more. At this time, the Company is not able to assert whether any of these options will be exercised. Judgments used in applying ASC 842 include determining: i) whether a contract is, or contains, a lease; ii) the discount rate to be used to discount the unpaid lease payments to present value; iii) the lease term; and iv) the lease payments. We determine if a contract is, or contains, a lease at contract inception. A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. As all of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The lease term for all of our leases includes the noncancellable period of the lease plus any additional periods covered by either a lessee option to extend (or not to terminate) the lease that the lessee is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. Lease payments included in the measurement of the lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise. The components of lease expense were as follows:
($ in millions) | 2025 |  | 2024 |  | 2023
Operating lease cost | $ | 26.5 |  |  | $ | 24.2 |  |  | $ | 20.3 |
Finance lease - amortization of right-of-use (ROU) assets | 1.6 |  |  | 0.9 |  |  | — |
Finance lease - interest on lease liabilities | 0.2 |  |  | 0.1 |  |  | — |
Short-term lease cost | 3.5 |  |  | 2.5 |  |  | 6.1 |
Variable lease cost | 10.1 |  |  | 9.0 |  |  | 5.5 |
Total lease cost | $ | 41.9 |  |  | $ | 36.7 |  |  | $ | 31.9 |
The following table summarizes the finance lease amounts in the consolidated balance sheets as of December 31:
($ in millions) | Balance Sheet Classification |  | 2025 |  | 2024
ROU assets, net | Other noncurrent assets |  | $ | 34.7 |  |  | $ | 29.7 |
Lease liabilities (current) | Other current liabilities |  | $ | 1.5 |  |  | $ | 0.9 |
Lease liabilities (noncurrent) | Other long-term liabilities |  | $ | 3.6 |  |  | $ | 2.1 |
Supplemental information related to leases was as follows:
($ in millions) | 2025 |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 25.5 |  |  | $ | 32.5 |  |  | $ | 19.1 |
Operating cash flows from finance leases | $ | 0.2 |  |  | $ | 0.1 |  |  | $ | — |
Financing cash flows from finance leases | $ | 1.1 |  |  | $ | 23.3 |  |  | $ | 0.1 |
Right-of-use assets obtained in exchange for new lease liabilities: |  |  |  |  |
Operating leases | $ | 39.8 |  |  | $ | 41.2 |  |  | $ | 10.7 |
Finance leases | $ | 2.9 |  |  | $ | 24.6 |  |  | $ | — |
The following table shows the weighted average remaining lease terms and discount rates for our operating and finance leases as of December 31:
(in years) | 2025 |  | 2024
Weighted average remaining lease term: |  |  |
Operating leases | 8.3 |  | 8.3
Finance leases | 4.4 |  | 6.3
Weighted average discount rate: |  |  |
Operating leases | 4.67 | % |  | 3.99 | %
Finance leases | 4.15 | % |  | 4.80 | %
Maturities of lease liabilities as of December 31, 2025 were as follows:
($ in millions) | Operating |  | Finance
Year | Leases |  | Leases
2026 | $ | 27.4 |  |  | $ | 1.5 |
2027 | 21.0 |  |  | 1.5 |
2028 | 20.1 |  |  | 1.1 |
2029 | 14.8 |  |  | 0.5 |
2030 | 10.3 |  |  | 0.4 |
Thereafter | 52.8 |  |  | 0.5 |
| 146.4 |  |  | 5.5 |
Less: imputed lease interest | (28.1) |  |  | (0.4) |
Total lease liabilities | $ | 118.3 |  |  | $ | 5.1 |
Practical Expedients and Exemptions We have elected to adopt practical expedients around the combination of lease and non-lease components and the portfolio approach relating to discount rates. These practical expedients were applied consistently to all leases. We have elected not to recognize lease right-of-use assets and lease liabilities for all short-term leases (leases with an initial lease term of 12 months or less). We recognize the lease payments associated with our short-term leases as an expense over the lease term.
Leases | Leases As of December 31, 2025, we had leases primarily related to land, buildings, and machinery and equipment, with lease terms through 2269. Certain of our leases provide us with an option, exercisable at our sole discretion, to terminate the lease or extend the lease term for one year or more. At this time, the Company is not able to assert whether any of these options will be exercised. Judgments used in applying ASC 842 include determining: i) whether a contract is, or contains, a lease; ii) the discount rate to be used to discount the unpaid lease payments to present value; iii) the lease term; and iv) the lease payments. We determine if a contract is, or contains, a lease at contract inception. A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. As all of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our incremental borrowing rate for a lease is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The lease term for all of our leases includes the noncancellable period of the lease plus any additional periods covered by either a lessee option to extend (or not to terminate) the lease that the lessee is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. Lease payments included in the measurement of the lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise. The components of lease expense were as follows:
($ in millions) | 2025 |  | 2024 |  | 2023
Operating lease cost | $ | 26.5 |  |  | $ | 24.2 |  |  | $ | 20.3 |
Finance lease - amortization of right-of-use (ROU) assets | 1.6 |  |  | 0.9 |  |  | — |
Finance lease - interest on lease liabilities | 0.2 |  |  | 0.1 |  |  | — |
Short-term lease cost | 3.5 |  |  | 2.5 |  |  | 6.1 |
Variable lease cost | 10.1 |  |  | 9.0 |  |  | 5.5 |
Total lease cost | $ | 41.9 |  |  | $ | 36.7 |  |  | $ | 31.9 |
The following table summarizes the finance lease amounts in the consolidated balance sheets as of December 31:
($ in millions) | Balance Sheet Classification |  | 2025 |  | 2024
ROU assets, net | Other noncurrent assets |  | $ | 34.7 |  |  | $ | 29.7 |
Lease liabilities (current) | Other current liabilities |  | $ | 1.5 |  |  | $ | 0.9 |
Lease liabilities (noncurrent) | Other long-term liabilities |  | $ | 3.6 |  |  | $ | 2.1 |
Supplemental information related to leases was as follows:
($ in millions) | 2025 |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 25.5 |  |  | $ | 32.5 |  |  | $ | 19.1 |
Operating cash flows from finance leases | $ | 0.2 |  |  | $ | 0.1 |  |  | $ | — |
Financing cash flows from finance leases | $ | 1.1 |  |  | $ | 23.3 |  |  | $ | 0.1 |
Right-of-use assets obtained in exchange for new lease liabilities: |  |  |  |  |
Operating leases | $ | 39.8 |  |  | $ | 41.2 |  |  | $ | 10.7 |
Finance leases | $ | 2.9 |  |  | $ | 24.6 |  |  | $ | — |
The following table shows the weighted average remaining lease terms and discount rates for our operating and finance leases as of December 31:
(in years) | 2025 |  | 2024
Weighted average remaining lease term: |  |  |
Operating leases | 8.3 |  | 8.3
Finance leases | 4.4 |  | 6.3
Weighted average discount rate: |  |  |
Operating leases | 4.67 | % |  | 3.99 | %
Finance leases | 4.15 | % |  | 4.80 | %
Maturities of lease liabilities as of December 31, 2025 were as follows:
($ in millions) | Operating |  | Finance
Year | Leases |  | Leases
2026 | $ | 27.4 |  |  | $ | 1.5 |
2027 | 21.0 |  |  | 1.5 |
2028 | 20.1 |  |  | 1.1 |
2029 | 14.8 |  |  | 0.5 |
2030 | 10.3 |  |  | 0.4 |
Thereafter | 52.8 |  |  | 0.5 |
| 146.4 |  |  | 5.5 |
Less: imputed lease interest | (28.1) |  |  | (0.4) |
Total lease liabilities | $ | 118.3 |  |  | $ | 5.1 |
Practical Expedients and Exemptions We have elected to adopt practical expedients around the combination of lease and non-lease components and the portfolio approach relating to discount rates. These practical expedients were applied consistently to all leases. We have elected not to recognize lease right-of-use assets and lease liabilities for all short-term leases (leases with an initial lease term of 12 months or less). We recognize the lease payments associated with our short-term leases as an expense over the lease term.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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