The Company leases certain manufacturing facilities, warehouses, office space, railcars and equipment. Leases with an initial term of twelve months or less are not recorded on the Condensed Consolidated Balance Sheet. All recorded leases are classified as operating leases and lease expense is recognized on a straight-line basis over the lease term. Lease components (base rental costs) are accounted for separately from the nonlease components (e.g., common-area maintenance costs). For leases that do not provide an implicit rate, the Company uses its estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

A summary of the Company’s lease information is as follows:


		June 30,			December 31,
	Classification	2026			2025
Assets
Right of use assets	Other Assets	$	159.5		$	166.0

Liabilities
Current lease liabilities	Accrued Expenses and Other Liabilities	$	25.2		$	23.9
Long-term lease liabilities	Deferred and Other Long-term Liabilities		146.9			153.0
Total lease liabilities		$	172.1		$	176.9

Other information
Weighted-average remaining lease term (years)			7.2			7.4
Weighted-average discount rate			5.2	%		5.2	%


	Three Months		Three Months		Six Months		Six Months
	Ended		Ended		Ended		Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Statement of Income
Lease cost(1)	$	8.6	$	10.5	$	17.4	$	21.0

Other information
Leased assets obtained in exchange for new lease liabilities net of modifications(2)	$	6.2	$	12.2	$	6.6	$	18.7
Cash paid for amounts included in the measurement of lease liabilities	$	8.0	$	10.7	$	15.7	$	21.2

(1)

Lease expense is included in Cost of sales or SG&A expenses based on the nature of the leased item. Short-term lease expense is excluded from this amount and is not material. The Company also has certain variable leases which are not material. The non-cash component of lease expense for the first six months of 2026 and 2025 was $13.0 and $16.3, respectively, and is included in the Amortization caption in the Condensed Consolidated Statement of Cash Flows.

(2)

In April 2025, the Company extended the lease term at one of its leased warehouse facilities. This resulted in an increase to the Company’s right of use assets and corresponding lease liabilities of approximately $11.0 recorded in the second quarter of 2025.

The Company’s minimum annual rentals including reasonably assured renewal options under lease agreements are as follows:


	Operating
	Leases
2026	$	16.9
2027		31.8
2028		27.7
2029		27.1
2030		26.8
2031 and thereafter		76.8
Total future minimum lease commitments		207.1
Less: Imputed interest		(35.0	)
Present value of lease liabilities	$	172.1