Company: NGVT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001653477-25-000015
Chunk: 851

Company: Ingevity Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 4
Chunk 851
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 is depreciated, utilizing the straight-line method, over the estimated useful lives of the assets, the majority of which range from 20 to 40 years for buildings and leasehold improvements and 5 to 30 years for machinery and equipment. The following table provides details on the useful lives and proportion of our machinery and equipment (“M&E”) in each useful life category.Percent of M&E CostDepreciable Life in YearsTypes of Assets275 to 10Production control system equipment and hardware, laboratory testing equipment1315Control systems, instrumentation, metering equipment3720Production vessels and kilns, storage tanks, piping625 to 30Blending equipment, storage tanks, piping, shipping equipment and platforms, safety equipment240Machinery & equipment support structures and foundations15VariousVariousLeases: We lease various assets for use in our operations that are classified as both operating and financing leases. At contract inception, we determine that a lease exists if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. Control is considered to exist when the lessee has the right to obtain substantially all of the economic benefits from the use of an identified asset as well as the right to direct the use of that asset. If a contract is considered to be a lease, we recognize a lease liability based on the present value of the future lease payments, with an offsetting entry to recognize a right-of-use asset. As a majority of our leases do not provide an explicit rate within the lease, an incremental borrowing rate is used, which is based on information available at the commencement date. The determination of the incremental borrowing rate for each individual lease was impacted by the following assumptions: lease term, currency, and the economic environment for the physical location of the leased asset. 

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IndexIngevity CorporationNotes to the Consolidated Financial StatementsDecember 31, 2024

Our operating leases principally relate to the following leased asset classes:Leased Asset ClassRemaining Lease TermAdministrative offices 2 to 15 yearsManufacturing buildings4 to 50 yearsManufacturing and office equipment1 to 11 yearsWarehousing and storage facilities3 to 10 yearsRail cars0 to 10 yearsLeases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. Lease expense is recognized on a straight-line basis over the expected lease term. Some of our leases include options to extend the lease term at our sole discretion. We account for lease and non-lease components together as a single component