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Leases | 6 Months Ended
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Jun. 30, 2025
Leases [Abstract] |
Leases | Leases Lessor Sealed Air has contractual obligations as a lessor with respect to some of our automation and equipment solutions including "free on loan" equipment and leased equipment, both sales-type and operating. The consideration in a contract that contains both lease and non-lease components is allocated based on the standalone selling price. Our contractual obligations for operating leases can include termination and renewal options. Our contractual obligations for sales-type leases tend to have fixed terms and can include purchase options. We utilize the reasonably certain threshold criteria in determining which options our customers will exercise. All lease payments are primarily fixed in nature and therefore captured in the lease receivable. Our sales-type lease receivable balances at June 30, 2025 and December 31, 2024 were as follows:
(In millions) |  | June 30, 2025 |  | December 31, 2024
Short-Term (12 months or less) |  | $ | 10.9 |  |  | $ | 9.3 |
Long-Term |  | 45.2 |  |  | 42.2 |
Lease receivables |  | $ | 56.1 |  |  | $ | 51.5 |
Sales-type and operating lease revenue was less than 1% of net trade sales for the six months ended June 30, 2025 and the year ended December 31, 2024. Lessee Sealed Air has contractual obligations as a lessee with respect to warehouses, offices and manufacturing facilities, IT equipment, automobiles and material production equipment. The following table details our lease obligations included in our Condensed Consolidated Balance Sheets.
(In millions) |  | June 30, 2025 |  | December 31, 2024
Other non-current assets: |  |  |  |
Finance leases - ROU assets |  | $ | 38.4 |  |  | $ | 39.2 |
Finance leases - Accumulated depreciation |  | (19.3) |  |  | (19.0) |
Operating lease right-of-use-assets: |  |  |  |
Operating leases - ROU assets |  | 223.7 |  |  | 222.4 |
Operating leases - Accumulated depreciation |  | (132.1) |  |  | (124.4) |
Total lease assets |  | $ | 110.7 |  |  | $ | 118.2 |
Current portion of long-term debt: |  |  |  |
Finance leases |  | $ | (7.4) |  |  | $ | (6.6) |
Current portion of operating lease liabilities: |  |  |  |
Operating leases |  | (31.3) |  |  | (29.7) |
Long-term debt, less current portion: |  |  |  |
Finance leases |  | (10.6) |  |  | (12.9) |
Long-term operating lease liabilities, less current portion: |  |  |  |
Operating leases |  | (68.8) |  |  | (74.8) |
Total lease liabilities |  | $ | (118.1) |  |  | $ | (124.0) |
At June 30, 2025, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows:
(In millions) |  | Finance leases |  | Operating leases
Remainder of 2025 |  | $ | 5.0 |  |  | $ | 18.9 |
2026 |  | 6.1 |  |  | 32.2 |
2027 |  | 3.1 |  |  | 21.3 |
2028 |  | 1.4 |  |  | 14.6 |
2029 |  | 0.8 |  |  | 9.6 |
Thereafter |  | 7.4 |  |  | 20.1 |
Total lease payments |  | 23.8 |  |  | 116.7 |
Less: Interest |  | (5.8) |  |  | (16.6) |
Present value of lease liabilities |  | $ | 18.0 |  |  | $ | 100.1 |
The following lease cost is included in our Condensed Consolidated Statements of Operations:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Lease cost(1) |  |  |  |  |  |  |  |
Finance leases |  |  |  |  |  |  |  |
Amortization of ROU assets |  | $ | 2.0 |  |  | $ | 2.4 |  |  | $ | 4.1 |  |  | $ | 4.4 |
Interest on lease liabilities |  | 0.3 |  |  | 0.4 |  |  | 0.7 |  |  | 0.8 |
Operating leases |  | 9.7 |  |  | 8.9 |  |  | 19.7 |  |  | 18.3 |
Short-term lease cost |  | 0.7 |  |  | 1.1 |  |  | 1.1 |  |  | 1.3 |
Variable lease cost |  | 1.7 |  |  | 1.7 |  |  | 3.9 |  |  | 3.4 |
Total lease cost |  | $ | 14.4 |  |  | $ | 14.5 |  |  | $ | 29.5 |  |  | $ | 28.2 |
(1) With the exception of Interest on lease liabilities, we record lease costs to Cost of sales or Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations, depending on the use of the leased asset. Interest on lease liabilities is recorded to Interest expense, net on the Condensed Consolidated Statements of Operations. The following table details cash paid related to operating and finance leases included in our Condensed Consolidated Statements of Cash Flows and new right-of-use (“ROU”) assets included in our Condensed Consolidated Balance Sheets:
|  | Six Months Ended June 30,
(In millions) |  | 2025 |  | 2024
Other information: |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows - finance leases |  | $ | 2.5 |  |  | $ | 2.2 |
Operating cash flows - operating leases |  | $ | 20.8 |  |  | $ | 19.3 |
Financing cash flows - finance leases |  | $ | 4.8 |  |  | $ | 3.9 |
ROU assets obtained in exchange for new finance lease liabilities |  | $ | 2.9 |  |  | $ | 6.0 |
ROU assets obtained in exchange for new operating lease liabilities |  | $ | 9.0 |  |  | $ | 26.7 |
|  | Six Months Ended June 30,
|  | 2025 |  | 2024
Weighted average information: |  |  |  |
Finance leases |  |  |  |
Remaining lease term (in years) |  | 5.9 |  | 5.7
Discount rate |  | 7.7 | % |  | 7.5 | %
Operating leases |  |  |  |
Remaining lease term (in years) |  | 4.7 |  | 5.2
Discount rate |  | 6.5 | % |  | 6.3 | %
Leases | Leases Lessor Sealed Air has contractual obligations as a lessor with respect to some of our automation and equipment solutions including "free on loan" equipment and leased equipment, both sales-type and operating. The consideration in a contract that contains both lease and non-lease components is allocated based on the standalone selling price. Our contractual obligations for operating leases can include termination and renewal options. Our contractual obligations for sales-type leases tend to have fixed terms and can include purchase options. We utilize the reasonably certain threshold criteria in determining which options our customers will exercise. All lease payments are primarily fixed in nature and therefore captured in the lease receivable. Our sales-type lease receivable balances at June 30, 2025 and December 31, 2024 were as follows:
(In millions) |  | June 30, 2025 |  | December 31, 2024
Short-Term (12 months or less) |  | $ | 10.9 |  |  | $ | 9.3 |
Long-Term |  | 45.2 |  |  | 42.2 |
Lease receivables |  | $ | 56.1 |  |  | $ | 51.5 |
Sales-type and operating lease revenue was less than 1% of net trade sales for the six months ended June 30, 2025 and the year ended December 31, 2024. Lessee Sealed Air has contractual obligations as a lessee with respect to warehouses, offices and manufacturing facilities, IT equipment, automobiles and material production equipment. The following table details our lease obligations included in our Condensed Consolidated Balance Sheets.
(In millions) |  | June 30, 2025 |  | December 31, 2024
Other non-current assets: |  |  |  |
Finance leases - ROU assets |  | $ | 38.4 |  |  | $ | 39.2 |
Finance leases - Accumulated depreciation |  | (19.3) |  |  | (19.0) |
Operating lease right-of-use-assets: |  |  |  |
Operating leases - ROU assets |  | 223.7 |  |  | 222.4 |
Operating leases - Accumulated depreciation |  | (132.1) |  |  | (124.4) |
Total lease assets |  | $ | 110.7 |  |  | $ | 118.2 |
Current portion of long-term debt: |  |  |  |
Finance leases |  | $ | (7.4) |  |  | $ | (6.6) |
Current portion of operating lease liabilities: |  |  |  |
Operating leases |  | (31.3) |  |  | (29.7) |
Long-term debt, less current portion: |  |  |  |
Finance leases |  | (10.6) |  |  | (12.9) |
Long-term operating lease liabilities, less current portion: |  |  |  |
Operating leases |  | (68.8) |  |  | (74.8) |
Total lease liabilities |  | $ | (118.1) |  |  | $ | (124.0) |
At June 30, 2025, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows:
(In millions) |  | Finance leases |  | Operating leases
Remainder of 2025 |  | $ | 5.0 |  |  | $ | 18.9 |
2026 |  | 6.1 |  |  | 32.2 |
2027 |  | 3.1 |  |  | 21.3 |
2028 |  | 1.4 |  |  | 14.6 |
2029 |  | 0.8 |  |  | 9.6 |
Thereafter |  | 7.4 |  |  | 20.1 |
Total lease payments |  | 23.8 |  |  | 116.7 |
Less: Interest |  | (5.8) |  |  | (16.6) |
Present value of lease liabilities |  | $ | 18.0 |  |  | $ | 100.1 |
The following lease cost is included in our Condensed Consolidated Statements of Operations:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Lease cost(1) |  |  |  |  |  |  |  |
Finance leases |  |  |  |  |  |  |  |
Amortization of ROU assets |  | $ | 2.0 |  |  | $ | 2.4 |  |  | $ | 4.1 |  |  | $ | 4.4 |
Interest on lease liabilities |  | 0.3 |  |  | 0.4 |  |  | 0.7 |  |  | 0.8 |
Operating leases |  | 9.7 |  |  | 8.9 |  |  | 19.7 |  |  | 18.3 |
Short-term lease cost |  | 0.7 |  |  | 1.1 |  |  | 1.1 |  |  | 1.3 |
Variable lease cost |  | 1.7 |  |  | 1.7 |  |  | 3.9 |  |  | 3.4 |
Total lease cost |  | $ | 14.4 |  |  | $ | 14.5 |  |  | $ | 29.5 |  |  | $ | 28.2 |
(1) With the exception of Interest on lease liabilities, we record lease costs to Cost of sales or Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations, depending on the use of the leased asset. Interest on lease liabilities is recorded to Interest expense, net on the Condensed Consolidated Statements of Operations. The following table details cash paid related to operating and finance leases included in our Condensed Consolidated Statements of Cash Flows and new right-of-use (“ROU”) assets included in our Condensed Consolidated Balance Sheets:
|  | Six Months Ended June 30,
(In millions) |  | 2025 |  | 2024
Other information: |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows - finance leases |  | $ | 2.5 |  |  | $ | 2.2 |
Operating cash flows - operating leases |  | $ | 20.8 |  |  | $ | 19.3 |
Financing cash flows - finance leases |  | $ | 4.8 |  |  | $ | 3.9 |
ROU assets obtained in exchange for new finance lease liabilities |  | $ | 2.9 |  |  | $ | 6.0 |
ROU assets obtained in exchange for new operating lease liabilities |  | $ | 9.0 |  |  | $ | 26.7 |
|  | Six Months Ended June 30,
|  | 2025 |  | 2024
Weighted average information: |  |  |  |
Finance leases |  |  |  |
Remaining lease term (in years) |  | 5.9 |  | 5.7
Discount rate |  | 7.7 | % |  | 7.5 | %
Operating leases |  |  |  |
Remaining lease term (in years) |  | 4.7 |  | 5.2
Discount rate |  | 6.5 | % |  | 6.3 | %

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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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