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Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
We have both operating and finance leases, with the majority being operating lease agreements related to rail cars, tanks, equipment, and real estate. Supplemental consolidated balance sheet information related to our leases is as follows:
December 31,
In millionsFinancial Statement Caption20242023
Assets
Operating lease assets, net (1)
Operating lease assets, net$50.4 $67.1 
Finance lease assets, net (2)
Property, plant, and equipment, net50.2 55.0 
Finance lease assets, net (2)
Other assets, net— 0.1 
Total lease assets$100.6 $122.2 
Liabilities
Current
Operating lease liabilities (3)
Current operating lease liabilities$16.9 $18.7 
Finance lease liabilitiesNotes payable and current maturities of long-term debt1.1 1.1 
Noncurrent
Operating lease liabilitiesNoncurrent operating lease liabilities36.8 48.6 
Finance lease liabilitiesLong-term debt including finance lease obligations98.9 100.0 
Total lease liabilities$153.7 $168.4 
_______________
(1) Operating lease assets, net are recorded net of accumulated amortization of $49.9 million and $40.7 million as of December 31, 2024, and 2023, respectively.
(2) Finance lease assets, net are recorded net of accumulated amortization in Property, plant, and equipment, net and Other assets, net of $81.4 million and $1.4 million, as of December 31, 2024, and $78.4 million and $1.5 million, as of December 31, 2023.
(3) Operating lease liabilities include $0.2 million and $0.5 million of accrued interest, as of December 31, 2024 and 2023, respectively.
Finance Leases
Our finance lease obligations of $100.0 million and $101.1 million at December 31, 2024 and 2023, respectively, primarily consist of two leases. The first obligation of $80.0 million, at December 31, 2024, is owed to the city of Wickliffe, Kentucky, associated with Performance Materials' Wickliffe, Kentucky, manufacturing plant, which is due at maturity in 2027. This obligation will be settled upon maturity utilizing liquid assets that have been placed into a trust established strictly for this purpose. The trust is presented as Restricted investment on the consolidated balance sheet in the amount of $81.6 million as of December 31, 2024, see Note 5 for more information. The remaining obligation of $20.0 million, at December 31, 2024, is primarily owed to the lessor of our corporate headquarters in North Charleston, South Carolina. The lease commenced in July 2020, with a term of 15 years, and is structured as a traditional rental with payments due on a monthly basis.
We also have a finance lease obligation due in 2031 for certain assets located at our Performance Materials' Waynesboro, Georgia, manufacturing plant. The lease is with the Development Authority of Burke County (“Authority”). The Authority established the sale-leaseback of these assets by issuing an industrial development revenue bond. The bond was purchased by Ingevity and the obligations under the finance lease remain with Ingevity. Accordingly, we offset the finance lease obligation and bond on our consolidated balance sheets.
Components of lease cost are as follows:
Years Ended December 31,
In millionsFinancial Statement Caption202420232022
Operating lease cost (1)
Cost of sales$20.3 $21.0 $19.9 
Selling, general, and administrative expenses1.3 1.2 1.4 
Finance lease cost
Amortization of leased assetsCost of sales$3.2 $3.2 $3.0 
Selling, general, and administrative expenses1.6 1.6 1.6 
Interest on lease liabilitiesInterest expense, net7.3 7.3 7.5 
Net lease cost (2)
$33.7 $34.3 $33.4 
_______________
(1) Includes short-term leases and variable lease costs, which are immaterial.
(2) Only on the rare occasion do we sublease our leased assets; as a result, this amount excludes sublease income which is immaterial.

Maturity of Lease Liabilities
December 31, 2024
In millionsOperating leasesFinance leasesTotal
2025$19.9 $8.3 $28.2 
202615.2 8.4 23.6 
202711.6 85.4 97.0 
20286.7 2.4 9.1 
20294.0 2.4 6.4 
2030 and thereafter3.5 15.2 18.7 
  Total lease payments$60.9 $122.1 $183.0 
Less: Interest7.2 22.1 29.3 
  Present value of lease liabilities (1)
$53.7 $100.0 $153.7 
_______________
(1) As of December 31, 2024, we have zero operating lease commitments that have not yet commenced related to manufacturing and office equipment leases.
Lease Term and Discount Rate
December 31,
In millions, except percentages and years20242023
Weighted-average remaining lease term (years)
Operating leases4.04.5
Finance leases10.911.9
Weighted-average discount rate
Operating leases5.95 %5.66 %
Finance leases5.44 %7.21 %
Other Information
Years Ended December 31,
In millions202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$21.7 $22.5 $18.8 
Operating cash flows from finance leases7.3 7.3 7.5 
Financing cash flows from finance leases1.0 0.7 0.9 
Leases Leases
We have both operating and finance leases, with the majority being operating lease agreements related to rail cars, tanks, equipment, and real estate. Supplemental consolidated balance sheet information related to our leases is as follows:
December 31,
In millionsFinancial Statement Caption20242023
Assets
Operating lease assets, net (1)
Operating lease assets, net$50.4 $67.1 
Finance lease assets, net (2)
Property, plant, and equipment, net50.2 55.0 
Finance lease assets, net (2)
Other assets, net— 0.1 
Total lease assets$100.6 $122.2 
Liabilities
Current
Operating lease liabilities (3)
Current operating lease liabilities$16.9 $18.7 
Finance lease liabilitiesNotes payable and current maturities of long-term debt1.1 1.1 
Noncurrent
Operating lease liabilitiesNoncurrent operating lease liabilities36.8 48.6 
Finance lease liabilitiesLong-term debt including finance lease obligations98.9 100.0 
Total lease liabilities$153.7 $168.4 
_______________
(1) Operating lease assets, net are recorded net of accumulated amortization of $49.9 million and $40.7 million as of December 31, 2024, and 2023, respectively.
(2) Finance lease assets, net are recorded net of accumulated amortization in Property, plant, and equipment, net and Other assets, net of $81.4 million and $1.4 million, as of December 31, 2024, and $78.4 million and $1.5 million, as of December 31, 2023.
(3) Operating lease liabilities include $0.2 million and $0.5 million of accrued interest, as of December 31, 2024 and 2023, respectively.
Finance Leases
Our finance lease obligations of $100.0 million and $101.1 million at December 31, 2024 and 2023, respectively, primarily consist of two leases. The first obligation of $80.0 million, at December 31, 2024, is owed to the city of Wickliffe, Kentucky, associated with Performance Materials' Wickliffe, Kentucky, manufacturing plant, which is due at maturity in 2027. This obligation will be settled upon maturity utilizing liquid assets that have been placed into a trust established strictly for this purpose. The trust is presented as Restricted investment on the consolidated balance sheet in the amount of $81.6 million as of December 31, 2024, see Note 5 for more information. The remaining obligation of $20.0 million, at December 31, 2024, is primarily owed to the lessor of our corporate headquarters in North Charleston, South Carolina. The lease commenced in July 2020, with a term of 15 years, and is structured as a traditional rental with payments due on a monthly basis.
We also have a finance lease obligation due in 2031 for certain assets located at our Performance Materials' Waynesboro, Georgia, manufacturing plant. The lease is with the Development Authority of Burke County (“Authority”). The Authority established the sale-leaseback of these assets by issuing an industrial development revenue bond. The bond was purchased by Ingevity and the obligations under the finance lease remain with Ingevity. Accordingly, we offset the finance lease obligation and bond on our consolidated balance sheets.
Components of lease cost are as follows:
Years Ended December 31,
In millionsFinancial Statement Caption202420232022
Operating lease cost (1)
Cost of sales$20.3 $21.0 $19.9 
Selling, general, and administrative expenses1.3 1.2 1.4 
Finance lease cost
Amortization of leased assetsCost of sales$3.2 $3.2 $3.0 
Selling, general, and administrative expenses1.6 1.6 1.6 
Interest on lease liabilitiesInterest expense, net7.3 7.3 7.5 
Net lease cost (2)
$33.7 $34.3 $33.4 
_______________
(1) Includes short-term leases and variable lease costs, which are immaterial.
(2) Only on the rare occasion do we sublease our leased assets; as a result, this amount excludes sublease income which is immaterial.

Maturity of Lease Liabilities
December 31, 2024
In millionsOperating leasesFinance leasesTotal
2025$19.9 $8.3 $28.2 
202615.2 8.4 23.6 
202711.6 85.4 97.0 
20286.7 2.4 9.1 
20294.0 2.4 6.4 
2030 and thereafter3.5 15.2 18.7 
  Total lease payments$60.9 $122.1 $183.0 
Less: Interest7.2 22.1 29.3 
  Present value of lease liabilities (1)
$53.7 $100.0 $153.7 
_______________
(1) As of December 31, 2024, we have zero operating lease commitments that have not yet commenced related to manufacturing and office equipment leases.
Lease Term and Discount Rate
December 31,
In millions, except percentages and years20242023
Weighted-average remaining lease term (years)
Operating leases4.04.5
Finance leases10.911.9
Weighted-average discount rate
Operating leases5.95 %5.66 %
Finance leases5.44 %7.21 %
Other Information
Years Ended December 31,
In millions202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$21.7 $22.5 $18.8 
Operating cash flows from finance leases7.3 7.3 7.5 
Financing cash flows from finance leases1.0 0.7 0.9