Leases

12 Months Ended

Dec. 31, 2024

NOTE 10 — LEASES

The Company primarily has third-party operating and finance leases for branch facilities, corporate office, and certain equipment. The Company has one operating lease with a related party. The Company’s leases have remaining lease terms that range from less than one year to leases that mature through December 2039 and contain provisions to renew the leases for additional terms of up to 20 years.

The Company leases and subleases certain lift trucks to customers under short and long-term operating lease agreements. The sublease income is included in "Rental revenues" on our Consolidated Statements of Operations. Sublease income below includes subleases of primarily facilities that are not included in Rental revenues due to being outside our normal business operations. The costs of the head lease for these subleases are included in Operating lease expense below.

At December 31, 2024 and 2023, assets recorded under finance leases, net of accumulated depreciation were $43.6 million and $37.6 million, respectively. The assets are depreciated over the lesser of their related lease terms or estimated useful lives.

The components of lease expense were as follows:


	Year Ended December 31,
	2024			2023			2022
Operating lease expense	$	27.3		$	27.0		$	25.1
Short-term lease expense		4.5			5.0			4.4
Low-value lease expense		1.4			0.9			0.5
Variable lease expense		10.3			9.0			6.6
Finance lease expense:
Amortization of right-of-use assets		10.3			6.5			4.0
Interest on lease liabilities		3.8			2.6			1.0
Sublease income		(0.3	)		(0.3	)		(0.1	)
Total lease expense	$	57.3		$	50.7		$	41.5

Additional information related to leases is presented in the table below:


	Year Ended December 31,
Supplemental Cash Flows Information	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	26.2	$	25.9	$	24.2
Operating cash flows for finance leases		3.8		2.6		1.0
Financing cash flows for finance leases		9.2		5.7		3.6
Non-cash right-of-use assets obtained in exchange for lease obligations:
Operating leases		19.3		13.9		29.3
Finance leases		16.3		25.2		11.6
Weighted Average Remaining Lease Term (in years):
Operating leases		8.6		8.9		9.3
Finance leases		4.3		4.7		4.5
Weighted Average Discount Rate (in %):
Operating leases		10.6		10.3		10.0
Finance leases		8.7		8.5		7.6

Minimum future lease payments under non-cancellable operating and finance leases described above were as follows:


Year ending December 31,	Operating Leases			Finance Leases
2025	$	25.7		$	13.9
2026		22.9			13.1
2027		21.4			11.5
2028		19.7			9.6
2029		15.1			5.7
Thereafter		79.2			0.9
Total future minimum lease payments		184.0			54.7
Less: imputed interest		(65.4	)		(8.7	)
Total	$	118.6		$	46.0


Balance Sheet Location	December 31, 2024		December 31, 2023
Current portion of long-term debt	$	10.5	$	7.7
Current operating lease liabilities		15.1		15.9
Finance lease obligations, net of current portion		35.5		31.1
Long-term operating lease liabilities, net of current portion		103.5		99.6
Total	$	164.6	$	154.3

As of December 31, 2024, the Company had additional leases, substantially all real estate, that have not yet commenced with undiscounted lease payments of $1.5 million. These leases are expected to commence in 2025 with lease terms up to 10 years.

The Company leases and subleases certain lift trucks to customers under long-term operating lease agreements which expire at various dates through 2029. Approximate minimum rentals receivable, none of which are recorded in our Consolidated Balance Sheets, under such leases for each of the next five years are as follows:


Years ending December 31,	Amount
2025	$	7.3
2026		5.4
2027		2.5
2028		0.3
2029		0.1
Total	$	15.6

Sublease income recorded in "Rental revenues" in our Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022 was $6.2 million, $6.2 million, and $7.0 million, respectively.

For more information on our rental revenues as a lessor, please refer to Note 3, Revenue Recognition.

See Note 11, Contingencies, for more information on certain contracts where the Company guarantees the performance of the third-party lessee.