Leases

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Leases

Leases

A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. Lease payments included in the measurement of the lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise.

The components of lease expense were as follows:

	Three Months Ended March 31,
($ in millions)	2025		2024
Operating lease cost	$	6.6	$	5.6
Finance lease - amortization of right-of-use (ROU) assets	0.3		—
Short-term lease cost	0.8		0.5
Variable lease cost	2.9		1.9
Total lease cost	$	10.6	$	8.0

The following table summarizes the finance lease amounts in the Consolidated Balance Sheets:

		March 31,		December 31,
($ in millions)	Balance Sheet Classification	2025		2024
ROU assets, net	Other noncurrent assets	$	32.0	$	29.7
Lease liabilities (current)	Other current liabilities	$	1.1	$	0.9
Lease liabilities (noncurrent)	Other long-term liabilities	$	3.1	$	2.1

Supplemental cash flow information related to leases were as follows:

	Three Months Ended March 31,
($ in millions)	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6.1	$	5.3
Financing cash flows from finance leases	$	0.2	$	0.1
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	4.2	$	4.2
Finance leases	$	1.3	$	—

As of March 31, 2025 and December 31, 2024, the weighted average remaining lease term for operating leases was 7.9 years and 8.3 years, respectively. As of March 31, 2025 and December 31, 2024, the weighted average remaining lease term for finance leases was 6.2 years and 6.3 years, respectively.

As of March 31, 2025 and December 31, 2024, the weighted average discount rate for operating leases was 4.05% and 3.99%, respectively. As of March 31, 2025 and December 31, 2024, the weighted average discount rate for finance leases was 4.45% and 4.80%, respectively.

Maturities of the Company's lease liabilities as of March 31, 2025 were as follows:

($ in millions)
Year	Operating Leases		Finance Leases
2025 (remaining period as of March 31, 2025)	$	18.7	$	0.9
2026	22.3		1.2
2027	17.5		1.1
2028	16.0		0.7
2029	12.3		0.3
Thereafter	26.9		0.2
	113.7		4.4
Less: imputed lease interest	(13.1)		(0.2)
Total lease liabilities	$	100.6	$	4.2

Leases

Leases

A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. Lease payments included in the measurement of the lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise.

The components of lease expense were as follows:

	Three Months Ended March 31,
($ in millions)	2025		2024
Operating lease cost	$	6.6	$	5.6
Finance lease - amortization of right-of-use (ROU) assets	0.3		—
Short-term lease cost	0.8		0.5
Variable lease cost	2.9		1.9
Total lease cost	$	10.6	$	8.0

The following table summarizes the finance lease amounts in the Consolidated Balance Sheets:

		March 31,		December 31,
($ in millions)	Balance Sheet Classification	2025		2024
ROU assets, net	Other noncurrent assets	$	32.0	$	29.7
Lease liabilities (current)	Other current liabilities	$	1.1	$	0.9
Lease liabilities (noncurrent)	Other long-term liabilities	$	3.1	$	2.1

Supplemental cash flow information related to leases were as follows:

	Three Months Ended March 31,
($ in millions)	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6.1	$	5.3
Financing cash flows from finance leases	$	0.2	$	0.1
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	4.2	$	4.2
Finance leases	$	1.3	$	—

As of March 31, 2025 and December 31, 2024, the weighted average remaining lease term for operating leases was 7.9 years and 8.3 years, respectively. As of March 31, 2025 and December 31, 2024, the weighted average remaining lease term for finance leases was 6.2 years and 6.3 years, respectively.

As of March 31, 2025 and December 31, 2024, the weighted average discount rate for operating leases was 4.05% and 3.99%, respectively. As of March 31, 2025 and December 31, 2024, the weighted average discount rate for finance leases was 4.45% and 4.80%, respectively.

Maturities of the Company's lease liabilities as of March 31, 2025 were as follows:

($ in millions)
Year	Operating Leases		Finance Leases
2025 (remaining period as of March 31, 2025)	$	18.7	$	0.9
2026	22.3		1.2
2027	17.5		1.1
2028	16.0		0.7
2029	12.3		0.3
Thereafter	26.9		0.2
	113.7		4.4
Less: imputed lease interest	(13.1)		(0.2)
Total lease liabilities	$	100.6	$	4.2