Leases

3 Months Ended

Mar. 31, 2025

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 immaterial 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 Condensed 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 March 31, 2025 and December 31, 2024, assets recorded under finance leases, net of accumulated depreciation, were $45.6 million and $43.6 million, respectively. The assets are depreciated over the lesser of their remaining lease terms or estimated useful lives.

The components of lease expense were as follows:


	Three Months Ended March 31,
	2025			2024
Operating lease expense	$	6.9		$	6.8
Short-term lease expense		0.9			2.4
Low-value lease expense		0.3			0.3
Variable lease expense		3.1			2.7
Finance lease expense:
Amortization of right-of-use assets		2.9			2.3
Interest on lease liabilities		1.0			0.9
Sublease income		(0.1	)		(0.1	)
Total lease expense	$	15.0		$	15.3

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


	Three Months Ended March 31,
Supplemental Cash Flows Information	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	6.7	$	6.6
Operating cash flows for finance leases		1.0		0.9
Financing cash flows for finance leases		2.7		2.0
Non-cash right-of-use assets obtained in exchange for lease obligations:
Operating leases		3.5		3.5
Finance leases		5.0		4.8
Weighted Average Remaining Lease Term (in years):
Operating leases		8.5		8.8
Finance leases		4.2		4.7
Weighted Average Discount Rate (in %):
Operating leases		10.6		10.3
Finance leases		8.9		8.4

Minimum future lease payments under non-cancellable operating and finance leases described above as of March 31, 2025 were as follows:


Year ending December 31,	Operating Leases			Finance Leases
Remainder of 2025	$	19.4		$	11.2
2026		23.4			14.2
2027		22.1			12.7
2028		20.3			10.7
2029		15.7			6.8
Thereafter		82.1			2.0
Total future minimum lease payments		183.0			57.6
Less: imputed interest		(64.8	)		(9.3	)
Total	$	118.2		$	48.3


Balance Sheet Location	March 31, 2025			December 31, 2024
Current portion of long-term debt	$	11.2		$	10.5
Current operating lease liabilities		14.8			15.1
Finance lease obligations, net of current portion		37.1			35.5
Long-term operating lease liabilities, net of current portion		103.4			103.5
Total	$	166.5		$	164.6

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