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Leases

3 Months Ended

Mar. 31, 2025

6. Leases

The Company has various operating and finance leases primarily for the use of land, storage tanks, railcars, equipment, precious metals, and office facilities that have remaining lease terms of greater than one year to 15 years, some of which include options to extend the lease for up to 31 years, and some of which include options to terminate the lease within one year.

Supplemental balance sheet information related to the Company’s leases for the periods presented were as follows (in millions):


		March 31,		December 31,
Assets:	Classification:	2025		2024
Operating lease assets	Other noncurrent assets, net ⁽¹⁾	$	233.8	$	240.2
Finance lease assets	Property, plant and equipment, net ⁽²⁾		2.2		2.5
Total leased assets		$	236.0	$	242.7
Liabilities:
Current
Operating	Other current liabilities	$	59.6	$	58.8
Finance	Current portion of long-term debt		1.0		1.0
Non-current
Operating	Other long-term liabilities		175.5		182.2
Finance	Long-term debt, less current portion		1.6		1.9
Total lease liabilities		$	237.7	$	243.9

(1)	During the three months ended March 31, 2025 and 2024, the Company had additions to its operating lease right of use assets and operating lease liabilities of approximately $8.9 million and $5.0 million, respectively.

(2)	Finance lease assets are recorded net of accumulated amortization of $6.0 million and $5.8 million as of March 31, 2025 and December 31, 2024, respectively.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense related to the Company’s leases for the periods presented were as follows (in millions).


		Three Months Ended March 31,
Lease Costs:	Classification:	2025		2024
Fixed operating lease cost	Cost of Sales; SG&A Expenses	$	19.0	$	20.9
Short-term operating lease cost ⁽¹⁾	Cost of Sales; SG&A Expenses		1.9		2.3
Variable operating lease cost ⁽²⁾	Cost of Sales; SG&A Expenses		0.2		0.7
Finance lease cost:
Amortization of finance lease assets	Cost of Sales		0.2		0.1
Interest on lease liabilities	Interest expense		0.1		0.1
Total lease cost		$	21.4	$	24.1

(1)	The Company’s leases with an initial term of 12 months or less are not recorded on the unaudited condensed consolidated balance sheets.

(2)	The Company’s railcar leases typically include a mileage limit the railcar can travel over the life of the lease. For any mileage incurred over this limit, the Company is obligated to pay an agreed upon dollar value for each mile that is traveled over the limit.

As of March 31, 2025, the Company had estimated minimum commitments for the payment of rentals under leases which, at inception, had a noncancellable term of more than one year, as follows (in millions):


	Operating		Finance
Maturity of Lease Liabilities	Leases ⁽¹⁾		Leases ⁽²⁾		Total
2025	$	57.6	$	0.9	$	58.5
2026		69.2		1.1		70.3
2027		64.9		0.5		65.4
2028		61.1		0.3		61.4
2029		6.8		0.1		6.9
Thereafter		18.2		—		18.2
Total	$	277.8	$	2.9	$	280.7
Less: Interest		42.7		0.3		43.0
Present value of lease liabilities	$	235.1	$	2.6	$	237.7
Less obligations due within one year		59.6		1.0		60.6
Long-term lease obligation	$	175.5	$	1.6	$	177.1

(1)	As of March 31, 2025, the Company’s operating lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases signed but not yet commenced as of March 31, 2025.

(2)	As of March 31, 2025, the Company’s finance lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases that have been signed but not yet commenced as of March 31, 2025.

Weighted-Average Lease Term and Discount Rate

The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating and finance leases were as follows:


	March 31,		December 31,
Lease Term and Discount Rate:	2025		2024
Weighted-average remaining lease term (years):
Operating leases	4.2		4.4
Finance leases	2.9		3.1
Weighted-average discount rate:
Operating leases	8.1	%	8.1	%
Finance leases	8.2	%	8.0	%