Leases

6 Months Ended

Jun. 30, 2025

A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. Lease payments included in the measurement of the lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise.

The components of lease expense were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2025		2024		2025		2024
Operating lease cost	$	6.8	$	6.1	$	13.4	$	11.7
Finance lease - amortization of right-of-use (ROU) assets	0.4		0.3		0.7		0.3
Finance lease - interest on lease liabilities	0.1		—		0.1		—
Short-term lease cost	0.7		0.6		1.5		1.1
Variable lease cost	2.5		1.9		5.4		3.8
Total lease cost	$	10.5	$	8.9	$	21.1	$	16.9

The following table summarizes the finance lease amounts in the condensed consolidated balance sheets:



		June 30,		December 31,
($ in millions)	Balance Sheet Classification	2025		2024

ROU assets, net	Other noncurrent assets	$	35.0	$	29.7
Lease liabilities (current)	Other current liabilities	$	1.3	$	0.9
Lease liabilities (noncurrent)	Other long-term liabilities	$	3.6	$	2.1

Supplemental cash flow information related to leases were as follows:


	Six Months Ended June 30,
($ in millions)		2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	12.6	$	20.3
Operating cash flows from finance leases		$	0.1	$	—
Financing cash flows from finance leases		$	0.5	$	22.9
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases		$	9.1	$	34.1
Finance leases		$	2.2	$	24.3

As of June 30, 2025 and December 31, 2024, the weighted average remaining lease term for operating leases was 6.2 years and 8.3 years, respectively. As of June 30, 2025 and December 31, 2024, the weighted average remaining lease term for finance leases was 4.6 years and 6.3 years, respectively.

As of June 30, 2025 and December 31, 2024, the weighted average discount rate for operating leases was 4.02% and 3.99%, respectively. As of June 30, 2025 and December 31, 2024, the weighted average discount rate for finance leases was 4.28% and 4.80%, respectively.

Maturities of the Company's lease liabilities as of June 30, 2025 were as follows:


($ in millions)
Year	Operating Leases		Finance Leases
2025 (remaining period as of June 30, 2025)	$	13.3	$	0.7
2026	25.1		1.3
2027	18.2		1.3
2028	16.7		0.9
2029	12.8		0.4
Thereafter	27.4		0.8
	113.5		5.4
Less: imputed lease interest	(12.8)		(0.5)
Total lease liabilities	$	100.7	$	4.9

Leases

The components of lease expense were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2025		2024		2025		2024
Operating lease cost	$	6.8	$	6.1	$	13.4	$	11.7
Finance lease - amortization of right-of-use (ROU) assets	0.4		0.3		0.7		0.3
Finance lease - interest on lease liabilities	0.1		—		0.1		—
Short-term lease cost	0.7		0.6		1.5		1.1
Variable lease cost	2.5		1.9		5.4		3.8
Total lease cost	$	10.5	$	8.9	$	21.1	$	16.9

The following table summarizes the finance lease amounts in the condensed consolidated balance sheets:



		June 30,		December 31,
($ in millions)	Balance Sheet Classification	2025		2024

ROU assets, net	Other noncurrent assets	$	35.0	$	29.7
Lease liabilities (current)	Other current liabilities	$	1.3	$	0.9
Lease liabilities (noncurrent)	Other long-term liabilities	$	3.6	$	2.1

Supplemental cash flow information related to leases were as follows:


	Six Months Ended June 30,
($ in millions)		2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	12.6	$	20.3
Operating cash flows from finance leases		$	0.1	$	—
Financing cash flows from finance leases		$	0.5	$	22.9
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases		$	9.1	$	34.1
Finance leases		$	2.2	$	24.3

Maturities of the Company's lease liabilities as of June 30, 2025 were as follows:


($ in millions)
Year	Operating Leases		Finance Leases
2025 (remaining period as of June 30, 2025)	$	13.3	$	0.7
2026	25.1		1.3
2027	18.2		1.3
2028	16.7		0.9
2029	12.8		0.4
Thereafter	27.4		0.8
	113.5		5.4
Less: imputed lease interest	(12.8)		(0.5)
Total lease liabilities	$	100.7	$	4.9

WEST PHARMACEUTICAL SERVICES INC 10-Q