XML 32 R16.htm IDEA: XBRL DOCUMENT v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
Summarized below is our policy under, as well as the various other disclosures required by, ASC 842.

We have elected to account for lease agreements with lease and non-lease components as a single component for all leases. Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term.

We review if an arrangement is a lease at inception and conclude whether the contract contains an identified asset if we have the right to obtain substantially all the economic benefit and direct the use of the asset. Operating leases with right-of-use (“ROU”) assets are reflected within “Other assets,” “Accrued expenses,” and “Other long-term liabilities” within our
consolidated balance sheets. Finance leases are included in “Property, plant and equipment,” “Current maturities of long-term debt,” and “Long-term debt.”

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and the related liabilities are recognized at commencement date based on the present value of lease payments over the lease term. These payments include renewal options when reasonably certain to be exercised, and exclude termination options. As none of our leases 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. The operating lease ROU asset also includes any prepaid lease payments and excludes lease incentives.

We have operating and finance leases for facilities, equipment, and vehicles. Our leases have remaining lease terms of one year to 10 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the lease within one year. We rent or sublease certain space within our facilities to third parties under operating leases, with the impact of these lease arrangements being immaterial to our consolidated financial statements.

The components of lease expense were as follows:
Year Ended
December 31, 2024December 31, 2023
Operating lease cost (1)
$16.5 $15.7 
Variable lease cost0.4 0.4 
Finance lease cost:
Amortization of right-of-use assets$0.4 $0.5 
Interest on lease liabilities— — 
Total finance lease cost$0.4 $0.5 
__________________________
(1) Includes short-term lease cost of $2.9 and $3.5, for the years ended December 31, 2024 and 2023, respectively.

Supplemental cash flow information related to leases is as follows:
Year Ended
December 31, 2024December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases$13.5 $12.1 
Operating cash flows from finance leases— — 
Financing cash flows used in finance leases0.4 0.5 
Non-cash activities:
Operating lease right-of-use assets obtained in exchange for new lease obligations27.7 6.3 
Finance lease right-of-use assets obtained in exchange for new lease obligations1.1 0.3 
Supplemental balance sheet information related to leases was as follows:

December 31,
20242023
Operating Leases:Affected Line Item in the Consolidated Balance Sheets
Operating lease ROU assets$57.9 $42.4 Other assets
Operating lease current liabilities$11.1 $11.3 Accrued expenses
Operating lease non-current liabilities44.5 28.5 Other long-term liabilities
Total operating lease liabilities$55.6 $39.8 
Finance Leases:
Finance lease assets$1.2 $0.5 Property, plant and equipment, net
Finance lease current liabilities$0.3 $0.3 Current maturities of long-term debt
Finance lease non-current liabilities0.9 0.2 Long-term debt
Total finance lease liabilities$1.2 $0.5 

The weighted-average remaining lease terms (years) of our leases as of December 31, 2024 and December 31, 2023, were as follows:
December 31,
20242023
Operating Leases5.85.5
Finance Leases3.31.9

The discount rate utilized to determine the present value of lease payments over the lease term is our incremental borrowing rate based on the information available at lease commencement date. In developing the incremental borrowing rate, we considered the interest rate that reflects a term similar to the underlying lease term on a fully collateralized basis. We concluded to apply the incremental borrowing rate at a consolidated portfolio level using a five-year term, as the results did not materially differ upon further stratification. The weighted-average discount rate for our operating leases was 4.1% and 3.2% at December 31, 2024 and 2023, respectively, and finance leases was 4.9% and 3.9% at December 31, 2024 and 2023, respectively.
The future minimum payments under our operating and finance leases were as follows as of December 31, 2024:
Operating LeasesFinance LeasesTotal
Next 12 months$13.2 $0.3 $13.5 
12 to 24 months11.9 0.4 12.3 
24 to 36 months11.2 0.3 11.5 
36 to 48 months10.3 0.2 10.5 
48 to 60 months8.9 0.1 9.0 
Thereafter7.4 — 7.4 
Total lease payments62.9 1.3 64.2 
Less imputed interest7.3 0.1 7.4 
Total$55.6 $1.2 $56.8 
Leases Leases
Summarized below is our policy under, as well as the various other disclosures required by, ASC 842.

We have elected to account for lease agreements with lease and non-lease components as a single component for all leases. Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheets and we recognize lease expense for these leases on a straight-line basis over the lease term.

We review if an arrangement is a lease at inception and conclude whether the contract contains an identified asset if we have the right to obtain substantially all the economic benefit and direct the use of the asset. Operating leases with right-of-use (“ROU”) assets are reflected within “Other assets,” “Accrued expenses,” and “Other long-term liabilities” within our
consolidated balance sheets. Finance leases are included in “Property, plant and equipment,” “Current maturities of long-term debt,” and “Long-term debt.”

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and the related liabilities are recognized at commencement date based on the present value of lease payments over the lease term. These payments include renewal options when reasonably certain to be exercised, and exclude termination options. As none of our leases 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. The operating lease ROU asset also includes any prepaid lease payments and excludes lease incentives.

We have operating and finance leases for facilities, equipment, and vehicles. Our leases have remaining lease terms of one year to 10 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the lease within one year. We rent or sublease certain space within our facilities to third parties under operating leases, with the impact of these lease arrangements being immaterial to our consolidated financial statements.

The components of lease expense were as follows:
Year Ended
December 31, 2024December 31, 2023
Operating lease cost (1)
$16.5 $15.7 
Variable lease cost0.4 0.4 
Finance lease cost:
Amortization of right-of-use assets$0.4 $0.5 
Interest on lease liabilities— — 
Total finance lease cost$0.4 $0.5 
__________________________
(1) Includes short-term lease cost of $2.9 and $3.5, for the years ended December 31, 2024 and 2023, respectively.

Supplemental cash flow information related to leases is as follows:
Year Ended
December 31, 2024December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases$13.5 $12.1 
Operating cash flows from finance leases— — 
Financing cash flows used in finance leases0.4 0.5 
Non-cash activities:
Operating lease right-of-use assets obtained in exchange for new lease obligations27.7 6.3 
Finance lease right-of-use assets obtained in exchange for new lease obligations1.1 0.3 
Supplemental balance sheet information related to leases was as follows:

December 31,
20242023
Operating Leases:Affected Line Item in the Consolidated Balance Sheets
Operating lease ROU assets$57.9 $42.4 Other assets
Operating lease current liabilities$11.1 $11.3 Accrued expenses
Operating lease non-current liabilities44.5 28.5 Other long-term liabilities
Total operating lease liabilities$55.6 $39.8 
Finance Leases:
Finance lease assets$1.2 $0.5 Property, plant and equipment, net
Finance lease current liabilities$0.3 $0.3 Current maturities of long-term debt
Finance lease non-current liabilities0.9 0.2 Long-term debt
Total finance lease liabilities$1.2 $0.5 

The weighted-average remaining lease terms (years) of our leases as of December 31, 2024 and December 31, 2023, were as follows:
December 31,
20242023
Operating Leases5.85.5
Finance Leases3.31.9

The discount rate utilized to determine the present value of lease payments over the lease term is our incremental borrowing rate based on the information available at lease commencement date. In developing the incremental borrowing rate, we considered the interest rate that reflects a term similar to the underlying lease term on a fully collateralized basis. We concluded to apply the incremental borrowing rate at a consolidated portfolio level using a five-year term, as the results did not materially differ upon further stratification. The weighted-average discount rate for our operating leases was 4.1% and 3.2% at December 31, 2024 and 2023, respectively, and finance leases was 4.9% and 3.9% at December 31, 2024 and 2023, respectively.
The future minimum payments under our operating and finance leases were as follows as of December 31, 2024:
Operating LeasesFinance LeasesTotal
Next 12 months$13.2 $0.3 $13.5 
12 to 24 months11.9 0.4 12.3 
24 to 36 months11.2 0.3 11.5 
36 to 48 months10.3 0.2 10.5 
48 to 60 months8.9 0.1 9.0 
Thereafter7.4 — 7.4 
Total lease payments62.9 1.3 64.2 
Less imputed interest7.3 0.1 7.4 
Total$55.6 $1.2 $56.8