Lease Arrangements

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Lease Arrangements

Lease Arrangements

We lease manufacturing facilities, warehouse space, office space, machinery and equipment, information technology equipment and vehicles under operating leases. We also lease one building and numerous machinery and equipment under finance leases. For operating leases with terms greater than 12 months, we record the operating right-of-use asset and related lease liability at the present value of lease payments over the lease term. In certain real estate leases, we have options to renew

lease terms, generally at our sole discretion. We evaluate renewal options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors.

The discount rate implicit in our operating leases is generally not determinable, and therefore the Company determines the discount rate for each lease based on its incremental borrowing rate. The incremental borrowing rate is calculated based on lease term, currency and collateral adjustments.

During 2025, the Company obtained right-of-use assets in exchange for new operating lease liabilities of $12.2 million.

Balance Sheet as of December 31, 2025 and 2024

	Classification on the Balance Sheet	December 31, 2025			December 31, 2024
Assets
Operating lease assets	Operating lease right-of-use assets	$	41.2		$	40.3
Finance lease assets	Property, plant and equipment, net	20.8			22.1
Total lease assets		$	62.0		$	62.4
Liabilities
Current
Operating	Current portion of operating lease liabilities	$	10.9		$	10.7
Finance	Current portion of long-term debt and short-term debt	3.2			3.3
Noncurrent
Operating	Long-term operating lease liabilities	30.4			29.8
Finance	Long-term debt	13.4			13.7
Total lease liabilities		$	57.9		$	57.5
Weighted-average remaining lease term (in years)
Operating leases		4.7			4.9
Finance leases		4.1			5.0
Weighted-average discount rate
Operating leases		5.5		%	5.2		%
Finance leases		6.2		%	6.1		%

Lease Expense for 2025, 2024 and 2023

Operating lease expense is recognized on a straight-line basis over the lease term, with variable payments recognized in the period those payments are incurred.

	2025		2024		2023
Finance lease expense
Amortization of right-of-use assets	$	1.9	$	2.9	$	1.7
Interest on lease liabilities	0.9		0.9		1.0
Operating lease expense	15.1		15.5		14.8
Other lease expense(1)	10.4		7.6		9.6
Total lease expense	$	28.3	$	26.9	$	27.1
(1) - Other lease expense includes variable lease costs and short-term lease costs.

Cash Flow Information for 2025, 2024 and 2023

	2025		2024		2023
Amounts included in the Consolidated Statements of Cash Flows:
Operating cash outflows for operating leases	$	(14.8)	$	(15.1)	$	(14.3)
Operating cash outflows for finance leases	$	(0.9)	$	(0.9)	$	(1.0)
Financing cash (outflows) inflows for finance leases	$	(0.5)	$	0.7	$	0.9

Maturities of Lease Liabilities as of December 31, 2025, were as follows:

	Operating Leases		Finance Leases
2026	$	12.8	$	3.3
2027	10.1		3.1
2028	8.2		3.1
2029	6.2		5.3
2030	4.3		3.2
Thereafter	5.2		0.8
Total lease payments	46.8		18.8
Less: amount of lease payments representing interest	(5.5)		(2.2)
Total present value of future lease payments	$	41.3	$	16.6

Certain of the Company’s leases are with related parties at an annual rental expense of approximately $5.1 million. Transactions with related parties are not material to the Company’s financial position, results of operations or cash flows.

Lease Arrangements

Lease Arrangements

We lease manufacturing facilities, warehouse space, office space, machinery and equipment, information technology equipment and vehicles under operating leases. We also lease one building and numerous machinery and equipment under finance leases. For operating leases with terms greater than 12 months, we record the operating right-of-use asset and related lease liability at the present value of lease payments over the lease term. In certain real estate leases, we have options to renew

lease terms, generally at our sole discretion. We evaluate renewal options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors.

The discount rate implicit in our operating leases is generally not determinable, and therefore the Company determines the discount rate for each lease based on its incremental borrowing rate. The incremental borrowing rate is calculated based on lease term, currency and collateral adjustments.

During 2025, the Company obtained right-of-use assets in exchange for new operating lease liabilities of $12.2 million.

Balance Sheet as of December 31, 2025 and 2024

	Classification on the Balance Sheet	December 31, 2025			December 31, 2024
Assets
Operating lease assets	Operating lease right-of-use assets	$	41.2		$	40.3
Finance lease assets	Property, plant and equipment, net	20.8			22.1
Total lease assets		$	62.0		$	62.4
Liabilities
Current
Operating	Current portion of operating lease liabilities	$	10.9		$	10.7
Finance	Current portion of long-term debt and short-term debt	3.2			3.3
Noncurrent
Operating	Long-term operating lease liabilities	30.4			29.8
Finance	Long-term debt	13.4			13.7
Total lease liabilities		$	57.9		$	57.5
Weighted-average remaining lease term (in years)
Operating leases		4.7			4.9
Finance leases		4.1			5.0
Weighted-average discount rate
Operating leases		5.5		%	5.2		%
Finance leases		6.2		%	6.1		%

Lease Expense for 2025, 2024 and 2023

Operating lease expense is recognized on a straight-line basis over the lease term, with variable payments recognized in the period those payments are incurred.

	2025		2024		2023
Finance lease expense
Amortization of right-of-use assets	$	1.9	$	2.9	$	1.7
Interest on lease liabilities	0.9		0.9		1.0
Operating lease expense	15.1		15.5		14.8
Other lease expense(1)	10.4		7.6		9.6
Total lease expense	$	28.3	$	26.9	$	27.1
(1) - Other lease expense includes variable lease costs and short-term lease costs.

Cash Flow Information for 2025, 2024 and 2023

	2025		2024		2023
Amounts included in the Consolidated Statements of Cash Flows:
Operating cash outflows for operating leases	$	(14.8)	$	(15.1)	$	(14.3)
Operating cash outflows for finance leases	$	(0.9)	$	(0.9)	$	(1.0)
Financing cash (outflows) inflows for finance leases	$	(0.5)	$	0.7	$	0.9

Maturities of Lease Liabilities as of December 31, 2025, were as follows:

	Operating Leases		Finance Leases
2026	$	12.8	$	3.3
2027	10.1		3.1
2028	8.2		3.1
2029	6.2		5.3
2030	4.3		3.2
Thereafter	5.2		0.8
Total lease payments	46.8		18.8
Less: amount of lease payments representing interest	(5.5)		(2.2)
Total present value of future lease payments	$	41.3	$	16.6

Certain of the Company’s leases are with related parties at an annual rental expense of approximately $5.1 million. Transactions with related parties are not material to the Company’s financial position, results of operations or cash flows.