Apple Inc.AAPL

Apple Inc. Leases Disclosure

10-KFiled Nov 1, 20242 min read
Leases
The Company has lease arrangements for certain equipment and facilities, including corporate, data center, manufacturing and retail space. These leases typically have original terms not exceeding 10 years and generally contain multiyear renewal options, some of which are reasonably certain of exercise.
Payments under the Company’s lease arrangements may be fixed or variable, and variable lease payments are primarily based on purchases of output of the underlying leased assets. Lease costs associated with fixed payments on the Company’s operating leases were $2.0 billion for both 2024 and 2023 and $1.9 billion for 2022. Lease costs associated with variable payments on the Company’s leases were $13.8 billion, $13.9 billion and $14.9 billion for 2024, 2023 and 2022, respectively.
The Company made fixed cash payments related to operating leases of $1.9 billion in both 2024 and 2023 and $1.8 billion in 2022. Noncash activities involving right-of-use (“ROU”) assets obtained in exchange for lease liabilities were $1.0 billion, $2.1 billion and $2.8 billion for 2024, 2023 and 2022, respectively.
The following table shows ROU assets and lease liabilities, and the associated financial statement line items, as of September 28, 2024 and September 30, 2023 (in millions):
Lease-Related Assets and LiabilitiesFinancial Statement Line Items20242023
Right-of-use assets:
Operating leasesOther non-current assets$10,234 $10,661 
Finance leasesProperty, plant and equipment, net1,069 1,015 
Total right-of-use assets$11,303 $11,676 
Lease liabilities:
Operating leasesOther current liabilities$1,488 $1,410 
Other non-current liabilities10,046 10,408 
Finance leasesOther current liabilities144 165 
Other non-current liabilities752 859 
Total lease liabilities$12,430 $12,842 
Lease liability maturities as of September 28, 2024, are as follows (in millions):
Operating
Leases		Finance
Leases		Total
2025$1,820 $171 $1,991 
20261,914 131 2,045 
20271,674 59 1,733 
20281,360 38 1,398 
20291,187 36 1,223 
Thereafter5,563 837 6,400 
Total undiscounted liabilities13,518 1,272 14,790 
Less: Imputed interest(1,984)(376)(2,360)
Total lease liabilities$11,534 $896 $12,430 
The weighted-average remaining lease term related to the Company’s lease liabilities as of September 28, 2024 and September 30, 2023 was 10.3 years and 10.6 years, respectively. The discount rate related to the Company’s lease liabilities as of September 28, 2024 and September 30, 2023 was 3.1% and 3.0%, respectively. The discount rates related to the Company’s lease liabilities are generally based on estimates of the Company’s incremental borrowing rate, as the discount rates implicit in the Company’s leases cannot be readily determined.
As of September 28, 2024, the Company had $849 million of fixed payment obligations under additional leases, primarily for corporate facilities and retail space, that had not yet commenced. These leases will commence between 2025 and 2026, with lease terms ranging from less than 1 year to 21 years.

Historical Timeline

Fiscal YearFiled
2024Nov 1, 2024Showing above
2023Nov 3, 2023
2022Oct 28, 2022
2021Oct 29, 2021
2020Oct 30, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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