ABBOTT LABORATORIESABT

ABBOTT LABORATORIES Leases Disclosure

10-KFiled Feb 20, 20263 min read
Leases
Leases where Abbott is the Lessee
Abbott has entered into operating leases as the lessee for office space, manufacturing facilities, R&D laboratories, warehouses, vehicles, and equipment. Finance leases are not significant. Abbott’s operating leases generally have remaining lease terms of 1 to 10 years. Some leases include options to extend beyond the original lease term, generally up to 10 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised.
For all of its asset classes, Abbott elected the practical expedient allowed under FASB ASC No. 842, “Leases” to account for each lease component (e.g., the right to use office space) and the associated non-lease components (e.g., maintenance services) as a single lease component. Abbott also elected the short-term lease accounting policy for all asset classes; therefore, Abbott is not recognizing a lease liability or right of use (ROU) asset for any lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that Abbott is reasonably certain to exercise.
As Abbott’s leases typically do not provide an implicit rate, the interest rate used to determine the present value of the payments under each lease typically reflects Abbott’s incremental borrowing rate based on information available at the lease commencement date.
The following table provides information related to Abbott’s operating leases:
(in millions, except weighted averages)202520242023
Operating lease cost (a)$391 $366 $356 
Cash paid for amounts included in the measurement of operating lease liabilities315 300 276 
ROU assets arising from entering into new operating lease obligations300 253 253 
Weighted average remaining lease term at December 31 (in years)777
Weighted average discount rate at December 313.9 %3.6 %3.4 %
________________________________________________________
(a)
Includes short-term lease expense and variable lease costs, which were immaterial in the years ended December 31, 2025, 2024, and 2023.
Future minimum lease payments under non-cancellable operating leases as of December 31, 2025, were as follows:
(in millions)
2026$316 
2027254 
2028197 
2029151 
2030111 
Thereafter362 
Total future minimum lease payments – undiscounted1,391 
Less: imputed interest
(184)
Present value of lease liabilities$1,207 
The following table summarizes the amounts and location of operating lease ROU assets and lease liabilities:
(in millions)December 31, 2025December 31, 2024Balance Sheet Caption
Operating Lease - ROU Asset$1,126 $1,075 Deferred income taxes and other assets
Operating Lease Liability: 
Current$276 $254 Other accrued liabilities
Non-current931 896 Post-employment obligations and other long-term liabilities
Total Liability$1,207 $1,150 
Leases where Abbott is the Lessor
Certain assets, primarily diagnostic instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g., reagent) sales. The allocation of revenue between the lease and non-lease components is based on standalone selling prices. Operating lease revenue represented less than 3 percent of Abbott’s total net sales in the years ended December 31, 2025, 2024, and 2023.
Assets related to operating leases are reported within Net property and equipment on the Consolidated Balance Sheet. The original cost and the net book value of such assets were $4.6 billion and $2.1 billion, respectively, as of December 31, 2025, and $3.9 billion and $1.8 billion, respectively, as of December 31, 2024.
Free Sentinel

Want the next ABBOTT LABORATORIES leases disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment ABBOTT LABORATORIES's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 21, 2025
2023Feb 16, 2024
2022Feb 17, 2023
2019Feb 21, 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.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesSegmentsDebtCommitmentsStock CompensationNew Standards