Leases

3 Months Ended

Mar. 31, 2025

5. Leases

The Company leases its corporate headquarters, various other facilities for distribution, manufacturing and offices, as well as vehicles, forklifts and other equipment. The Company determines if an arrangement is a lease at inception. Leases are included in "Right of use asset, leases" ("ROU Assets"), and the current portion of the lease liability is included in "Lease liabilities" and the non-current portion is included in "Long-term lease liabilities" in the Condensed Consolidated Balance Sheets. The Company currently has an immaterial amount of financing leases and leases with terms of more than one month and less than 12 months.

ROU Assets and lease liabilities are recognized based on the present value of lease payments over the lease term. In determining the present value of leases, the Company uses its incremental collateralized borrowing rate, on a regional basis, due to the implicit rate of return is generally not readily determinable for our leases. The incremental borrowing rate is dependent upon the duration of the lease and has been segmented into three groups of time. All leases within the same region and the same group of time share the same incremental borrowing rate. The Company has lease agreements with lease and non-lease components, which are combined for accounting purposes for all classes of underlying assets except information technology equipment.

The components of lease expense were as follows:


	Three months ended March 31,
(in millions)	2025			2024
Operating lease cost	$	7.1		$	7.4
Sublease income		(0.8	)		(0.9	)
Total lease cost	$	6.3		$	6.5

Other information related to leases was as follows:


	Three Months Ended March 31,
(in millions, except lease term and discount rate)	2025			2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7.4		$	7.7
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	7.4		$	8.7

Weighted average remaining lease term:
Operating leases	5.5 years

Weighted average discount rate:
Operating leases		5.3	%

Future minimum lease payments, net of sublease income, for all non-cancelable leases as of March 31, 2025 were as follows:


(in millions)	Operating Leases
2025	$	20.8
2026		23.2
2027		18.2
2028		15.1
2029		11.9
2030		10.3
Thereafter		9.1
Total minimum lease payments		108.6
Less imputed interest		17.0
Future minimum payments for leases, net of sublease rental income and imputed interest	$	91.6