Leases

9 Months Ended

Sep. 30, 2024

Leases

Leases

14. Leases

Certain of our arrangements include leases for equipment installed at customer locations. As the lessor, we combine lease and non-lease components for all classes of underlying assets in arrangements that involve operating leases. The single combined component is accounted for under ASC 606, Revenue from Contracts with Customers based on the consideration that the non-lease components are the predominant items in the arrangements. If a component cannot be combined, the consideration is allocated between the lease component and the non-lease component based on relative standalone selling price. The lease component is accounted for under ASC 842, Leases and the non-lease component is accounted for under ASC 606.

Lease income from operating leases is not material for any of the periods presented. Lease income from sales type leases is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(in millions)				(in millions)
Interest receivable	$	0.2		—	$	0.5		—
Profit recognized at commencement date of sales type leases		0.7		—		2.0		—
	$	0.9	$	—	$	2.5	$	—

During the three months ended September 30, 2024 the Company entered into a finance lease agreement for machine purchases with CSJ SPV, LLC, of which HG Vora Opportunistic Capital Master Fund II LP is the Managing Member for $21.0 million which will be repaid over six years by way of structured quarterly repayments inclusive of principal and interest.