v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases

NOTE 12. LEASES

The following table presents our lease costs:

 

 

 

2024

 

 

2023

 

 

2022

 

Operating lease cost

 

$

10.0

 

 

$

8.5

 

 

$

7.0

 

Finance lease cost:

 

 

 

 

 

 

 

 

 

Amortization of leased assets

 

$

4.2

 

 

$

3.1

 

 

$

2.4

 

Interest on lease liabilities

 

 

1.4

 

 

 

0.9

 

 

 

0.6

 

Total finance lease cost

 

$

5.6

 

 

$

4.0

 

 

$

3.0

 

 

Short-term lease expense and variable lease cost were not material for the years ended December 31, 2024, 2023 and 2022 and are excluded from the table above. As of December 31, 2024, we did not have any material leases that have not yet commenced.

 

The following table presents supplemental cash flow information related to our leases:

 

 

 

2024

 

 

2023

 

 

2022

 

Cash paid for amounts included in the measurement of lease liabilities

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

9.6

 

 

$

8.0

 

 

$

6.8

 

Operating cash flows from finance leases

 

 

1.3

 

 

 

0.8

 

 

 

0.6

 

Financing cash flows from finance leases

 

 

3.3

 

 

 

2.7

 

 

 

2.2

 

ROU assets obtained in exchange for lease liabilities

 

 

 

 

 

 

 

 

 

Operating leases (1)

 

$

19.0

 

 

$

15.8

 

 

$

3.9

 

Finance leases (2)

 

 

13.6

 

 

 

12.3

 

 

 

-

 
(1)
During 2024, increases in ROU assets included $13.0 million from the acquisitions of 3form and Zahner and a $4.7 million increase from modifications that did not involve obtaining a new ROU asset. During 2023, increases in ROU assets included a decrease of $1.0 million due to a change in lease classification upon modification and an increase of $0.6 million resulting from modifications that did not involve obtaining a new ROU asset. During 2022, increases in ROU assets included $1.0 million resulting from modifications that did not involve obtaining a new ROU asset. Modifications for all years presented resulted primarily from changes in the terms of existing leases.
(2)
During 2024, increases in ROU assets included $8.9 million from the acquisition of Zahner and a $1.1 million decrease from modifications that did not involve obtaining a new ROU asset. During 2023, increases in ROU assets included $8.6 million due to a change in lease classification upon modification for an existing manufacturing facility within our Architectural Specialties segment that had a modified expected lease term of 13 years, in addition to an increase of $3.7 million for a lease modification that did not involve obtaining a new ROU asset.

 

The following table presents the weighted average assumptions used to compute our ROU assets and lease liabilities:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

Weighted average remaining lease term (in years)

 

 

 

 

 

 

Operating leases

 

 

5.7

 

 

 

4.8

 

Finance leases

 

 

11.4

 

 

 

9.5

 

Weighted average discount rate

 

 

 

 

 

 

Operating leases

 

 

5.6

%

 

 

5.7

%

Finance leases

 

 

5.1

%

 

 

4.7

%

 

Undiscounted future minimum lease payments as of December 31, 2024, by year and in the aggregate, having non-cancelable lease terms in excess of one year are as follows:

 

 

 

Operating Leases

 

 

Finance Leases

 

Maturity of lease liabilities

 

 

 

 

 

 

2025

 

$

10.0

 

 

$

5.6

 

2026

 

 

8.7

 

 

 

6.1

 

2027

 

 

7.9

 

 

 

5.2

 

2028

 

 

6.0

 

 

 

3.6

 

2029

 

 

2.7

 

 

 

2.8

 

Thereafter

 

 

9.2

 

 

 

28.0

 

Total lease payments

 

 

44.5

 

 

 

51.3

 

Less interest

 

 

(6.7

)

 

 

(14.3

)

Present value of lease liabilities

 

$

37.8

 

 

$

37.0