Specifically, when determining the classification of a lease as operating or financing, the Company considers whether there is control of the underlying asset, the transfer of substantially all of the economic benefits associated with the asset and whether the lease term and present value of lease payments are significant relative to the asset's fair value.

The Company does not recognize a lease liability or right-of-use ("ROU") asset for short-term leases (leases with an initial term of twelve months or less). For contracts with lease and non-lease components, the Company does not allocate the contract consideration, and accounts for the lease and non-lease components as a single lease component. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments under the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The implicit rate within the operating leases are generally not determinable and the Company has obtained rates from third-party financiers for relevant geographies, currencies and lease terms to determine the incremental borrowing rate at the inception of new leases. The operating lease ROU asset also includes any lease prepayments, offset by lease incentives. Certain of the Company's leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain the Company will exercise that option. An option to terminate is also considered in connection with determining the ROU asset and lease liability unless it is reasonably certain the Company will not exercise the option. Lease expense for operating lease payments is recognized on a straight-line basis over the term of the lease.

As of December 31, 2025 and 2024, the Company had the following amounts recorded on the Company's Consolidated Balance Sheets:


	Location on Balance Sheet	December 31, 2025		December 31, 2024
Assets
Operating lease assets	Other non-current assets	$	141.0	$	96.0
Finance lease assets	Property, plant and equipment, net	31.1		32.0
Total		$	172.1	$	128.0


	Location on Balance Sheet	December 31, 2025		December 31, 2024
Liabilities
Current
Operating lease liabilities	Other current liabilities	19.9		15.9
Finance lease liabilities	Current maturities of long-term debt	8.1		11.2
Long-term
Operating lease liabilities	Other long-term liabilities	128.0		85.2
Finance lease liabilities	Long-term debt	12.8		12.2
Total		$	168.8	$	124.5

Finance lease assets are recorded net of accumulated amortization of $25.1 million and $26.5 million as of December 31, 2025 and 2024, respectively. Amortization of plant and equipment under finance leases is included in depreciation expense. Finance lease obligations of $10.6 million, $13.5 million and $11.1 million were incurred in connection with lease agreements to acquire machinery and equipment during 2025, 2024 and 2023, respectively. In addition, leases with HYGFS included in the Consolidated Balance Sheet at December 31, 2025 and 2024, include $21.9 million and $16.3 million of ROU assets and $21.9 million and $16.4 million of lease liabilities, respectively.

For the year ended December 31, 2025, the Company recorded the following amounts:


		Year Ended
	Location on Income Statement	December 31, 2025		December 31, 2024
Operating lease cost	Cost of sales	$	11.0	$	10.1
Operating lease cost	Selling, general and administrative expenses	23.6		20.7
Finance lease cost
Amortization of leased assets	Cost of sales	14.6		10.8
Interest on lease liabilities	Interest expense	1.8		1.6

Sublease income	Revenues	(12.2)		(11.6)


Total		$	38.8	$	31.6

The Company recognizes sublease income primarily related to lift trucks in which the Company records revenues over the term of the lease in accordance with the rental agreements with its customers. Aggregate future minimum rentals to be received under noncancellable subleases of lift trucks as of December 31, 2025 were $35.7 million.

For the year ended December 31, 2025, the Company recorded the following amounts:


	Year Ended
	December 31, 2025		December 31, 2024
Cash paid for lease liabilities
Operating cash flows from operating leases	$	26.5	$	22.4
Operating cash flows from finance leases	1.8		1.3
Financing cash flows from finance leases	15.7		9.6
Non-cash amounts related to right-of-use assets obtained in exchange for lease obligations
Operating	$	67.9	$	53.9
Finance	10.4		11.7