v3.26.1
Leases
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
Finance Leases
We have finance leases primarily related to manufacturing equipment. Noncash activities involving finance lease right-of-use assets obtained in exchange for lease liabilities were $0.1 million and nil for the three months ended June 30, 2026 and 2025, respectively. Noncash activities involving finance lease right-of-use assets obtained in exchange for lease liabilities were $0.1 million and $8.1 million for the six months ended June 30, 2026 and 2025, respectively. Our expenses and payments for finance leases were as follows:
Three Months EndedSix Months Ended
(Dollars in millions)June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Amortization expense of finance lease right-of-use assets$0.4 $0.5 $0.8 $0.8 
Interest expense on finance lease obligations$(0.1)$(0.1)$(0.2)$(0.2)
Payments on finance lease obligations$0.6 $0.4 $0.9 $0.8 
Operating Leases
We have operating leases primarily related to manufacturing and R&D facilities, as well as vehicles. Noncash activities involving operating lease right-of-use assets obtained in exchange for lease liabilities were $0.1 million and $0.2 million for the three months ended June 30, 2026 and 2025, respectively. Noncash activities involving operating lease right-of-use assets obtained in exchange for lease liabilities were $0.6 million and $0.4 million for the six months ended June 30, 2026 and 2025, respectively. Our expenses and payments for operating leases were as follows:
Three Months EndedSix Months Ended
(Dollars in millions)June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Operating leases expense$1.2 $1.4 $2.5 $2.9 
Short-term leases expense$0.2 $0.2 $0.3 $0.4 
Payments on operating lease obligations$1.5 $1.7 $2.7 $2.8 
Lease Balances in the Statements of Financial Position
The assets and liabilities balances related to finance and operating leases reflected in the condensed consolidated statements of financial position were as follows:
(Dollars in millions)Financial Statement Line ItemJune 30, 2026December 31, 2025
Finance lease right-of-use assetsProperty, plant and equipment, net$7.7 $8.6 
Operating lease right-of-use assetsOperating lease right-of-use assets$17.7 $19.2 
Finance lease obligations, current portionOther accrued liabilities$1.3 $1.4 
Finance lease obligations, non-current portionOther long-term liabilities$6.6 $7.4 
Total finance lease obligations$7.9 $8.8 
Operating lease obligations, current portionOperating lease obligations, current portion$4.0 $3.9 
Operating lease obligations, non-current portionOperating lease obligations, non-current portion$16.6 $17.9 
Total operating lease obligations$20.6 $21.8 
Net Future Minimum Lease Payments
The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of June 30, 2026:
FinanceOperating
(Dollars in millions)Leases in EffectLeases in Effect
2026$0.9 $2.6 
20271.6 4.5 
20281.4 3.5 
20291.4 3.3 
20301.3 3.1 
Thereafter2.6 8.0 
Total lease payments9.2 25.0 
Less: Interest(1.3)(4.4)
Present Value of Future Minimum Lease Payments$7.9 $20.6 
There were no executed leases with future commencement dates as of June 30, 2026.
The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:
June 30, 2026December 31, 2025
Weighted Average Remaining Lease Term
Finance leases6.2 years6.7 years
Operating leases6.1 years6.4 years
Weighted Average Discount Rate
Finance leases4.61%4.70%
Operating leases5.52%5.55%
Subsequent to June 30, 2026, the Company entered into a settlement agreement with the landlord related to our leased facility in Mexico. Under the agreement, we will terminate the lease in exchange for a settlement payment of $2.6 million, which approximates the net carrying value of the lease obligation less the carrying amount of the related right-of-use asset, as of June 30, 2026. The settlement is expected to result in derecognition of the remaining right-of-use asset and lease liability during the third quarter of 2026.
Leases Leases
Finance Leases
We have finance leases primarily related to manufacturing equipment. Noncash activities involving finance lease right-of-use assets obtained in exchange for lease liabilities were $0.1 million and nil for the three months ended June 30, 2026 and 2025, respectively. Noncash activities involving finance lease right-of-use assets obtained in exchange for lease liabilities were $0.1 million and $8.1 million for the six months ended June 30, 2026 and 2025, respectively. Our expenses and payments for finance leases were as follows:
Three Months EndedSix Months Ended
(Dollars in millions)June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Amortization expense of finance lease right-of-use assets$0.4 $0.5 $0.8 $0.8 
Interest expense on finance lease obligations$(0.1)$(0.1)$(0.2)$(0.2)
Payments on finance lease obligations$0.6 $0.4 $0.9 $0.8 
Operating Leases
We have operating leases primarily related to manufacturing and R&D facilities, as well as vehicles. Noncash activities involving operating lease right-of-use assets obtained in exchange for lease liabilities were $0.1 million and $0.2 million for the three months ended June 30, 2026 and 2025, respectively. Noncash activities involving operating lease right-of-use assets obtained in exchange for lease liabilities were $0.6 million and $0.4 million for the six months ended June 30, 2026 and 2025, respectively. Our expenses and payments for operating leases were as follows:
Three Months EndedSix Months Ended
(Dollars in millions)June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Operating leases expense$1.2 $1.4 $2.5 $2.9 
Short-term leases expense$0.2 $0.2 $0.3 $0.4 
Payments on operating lease obligations$1.5 $1.7 $2.7 $2.8 
Lease Balances in the Statements of Financial Position
The assets and liabilities balances related to finance and operating leases reflected in the condensed consolidated statements of financial position were as follows:
(Dollars in millions)Financial Statement Line ItemJune 30, 2026December 31, 2025
Finance lease right-of-use assetsProperty, plant and equipment, net$7.7 $8.6 
Operating lease right-of-use assetsOperating lease right-of-use assets$17.7 $19.2 
Finance lease obligations, current portionOther accrued liabilities$1.3 $1.4 
Finance lease obligations, non-current portionOther long-term liabilities$6.6 $7.4 
Total finance lease obligations$7.9 $8.8 
Operating lease obligations, current portionOperating lease obligations, current portion$4.0 $3.9 
Operating lease obligations, non-current portionOperating lease obligations, non-current portion$16.6 $17.9 
Total operating lease obligations$20.6 $21.8 
Net Future Minimum Lease Payments
The following table includes future minimum lease payments under finance and operating leases together with the present value of the net future minimum lease payments as of June 30, 2026:
FinanceOperating
(Dollars in millions)Leases in EffectLeases in Effect
2026$0.9 $2.6 
20271.6 4.5 
20281.4 3.5 
20291.4 3.3 
20301.3 3.1 
Thereafter2.6 8.0 
Total lease payments9.2 25.0 
Less: Interest(1.3)(4.4)
Present Value of Future Minimum Lease Payments$7.9 $20.6 
There were no executed leases with future commencement dates as of June 30, 2026.
The following table includes information regarding the lease term and discount rates utilized in the calculation of the present value of net future minimum lease payments:
June 30, 2026December 31, 2025
Weighted Average Remaining Lease Term
Finance leases6.2 years6.7 years
Operating leases6.1 years6.4 years
Weighted Average Discount Rate
Finance leases4.61%4.70%
Operating leases5.52%5.55%
Subsequent to June 30, 2026, the Company entered into a settlement agreement with the landlord related to our leased facility in Mexico. Under the agreement, we will terminate the lease in exchange for a settlement payment of $2.6 million, which approximates the net carrying value of the lease obligation less the carrying amount of the related right-of-use asset, as of June 30, 2026. The settlement is expected to result in derecognition of the remaining right-of-use asset and lease liability during the third quarter of 2026.