INNOVATE Corp

9. Leases

The Company has entered into operating leases for land, office space, and certain Company vehicles and equipment and has entered into finance leases for certain Company vehicles and equipment. The leases will expire between 2025 and 2045. Right-of-use lease assets and lease liabilities consisted of the following (in millions):

The following table summarizes the components of lease expense (in millions):

Cash flow information related to leases is as follows (in millions):

(1) The above amounts exclude $4.0 million received during the three and six months ended June 30, 2025, and $4.0 million received during the three and six months ended June 30, 2024 for a lease modification incentive. See below for additional information.

The weighted-average remaining lease terms and the weighted-average discount rates for the Company's leases were as follows:

Future minimum lease commitments (undiscounted) as of June 30, 2025, were as follows (in millions):

On May 1, 2024, a subsidiary of DBMG amended the termination date ofthree property leases that had an original expiry date of March 31, 2031. In exchange, and as an inducement for DBMG to early terminate, the landlord agreed to pay DBMG $12.0 million in surrender fees inthree equal installments, contingent on timely vacate and inspection milestones, of which DBMG received $4.0 million in surrender fees in 2024 and $4.0 million in surrender fees in 2025, with the remaining $4.0 million payment due to DBMG due within five business days of the vacate date in 2027 for the remaining property lease. After final surrender of the properties, DBMG will have no further obligations under these leases. The Company accounted for this transaction as a lease modification and recognized a $7.7 million gain on lease modification, which is included in Other operating loss (income) in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024.