Company: NGVT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001653477-25-000015
Chunk: 1209

Company: Ingevity Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 1209
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.4 million, as of December 31, 2024, and $78.4 million and $1.5 million, as of December 31, 2023.(3) Operating lease liabilities include $0.2 million and $0.5 million of accrued interest, as of December 31, 2024 and 2023, respectively.Finance LeasesOur finance lease obligations of $100.0 million and $101.1 million at December 31, 2024 and 2023, respectively, primarily consist of two leases. The first obligation of $80.0 million, at December 31, 2024, is owed to the city of Wickliffe, Kentucky, associated with Performance Materials' Wickliffe, Kentucky, manufacturing plant, which is due at maturity in 2027. This obligation will be settled upon maturity utilizing liquid assets that have been placed into a trust established strictly for this purpose. The trust is presented as Restricted investment on the consolidated balance sheet in the amount of $81.6 million as of December 31, 2024, see Note 5 for more information. The remaining obligation of $20.0 million, at December 31, 2024, is primarily owed to the lessor of our corporate headquarters in North Charleston, South Carolina. The lease commenced in July 2020, with a term of 15 years, and is structured as a traditional rental with payments due on a monthly basis.We also have a finance lease obligation due in 2031 for certain assets located at our Performance Materials' Waynesboro, Georgia, manufacturing plant. The lease is with the Development Authority of Burke County (“Authority”). The Authority established the sale-leaseback of these assets by issuing an industrial development revenue bond. The bond was purchased by Ingevity and the obligations under the finance lease remain with Ingevity. Accordingly, we offset the finance lease obligation and bond on our consolidated balance sheets. 

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IndexIngevity CorporationNotes to the Consolidated Financial StatementsDecember 31, 2024

Components of lease cost are as follows:Years Ended December 31,In millionsFinancial Statement Caption202420232022Operating lease cost (1)Cost of sales$20.3 $21.0 $19.9 Selling, general, and administrative expenses1.3 1.2 1.4 Finance lease costAmortization of leased assetsCost of sales$3.2 $