ADOBE INC.ADBE

ADOBE INC. Leases Disclosure

10-KFiled Jan 15, 20262 min read
LEASES
We lease certain facilities and data centers under non-cancellable operating lease arrangements that expire at various dates through 2038. We also have one land lease that expires in 2091. Our lease agreements do not contain any material residual value guarantees, material variable payment provisions or material restrictive covenants.
Operating lease expense was $92 million, $106 million and $117 million for fiscal 2025, 2024 and 2023, respectively. Our operating lease expense includes variable lease costs and is net of sublease income, both of which are not material.
During fiscal 2024, we recognized impairment charges of $78 million associated with the optimization of our leased facilities, primarily for operating lease right-of-use assets and leasehold improvements, which were recorded as general and administrative expenses. There was no impairment recognized in the other periods presented.
Supplemental cash flow information for fiscal 2025, 2024 and 2023 related to operating leases was as follows:
(in millions)202520242023
Cash paid for amounts included in the measurement of operating lease liabilities$95 $85 $97 
Right-of-use assets obtained in exchange for operating lease liabilities$86 $62 $32 
The weighted-average remaining lease term and weighted-average discount rate for our operating lease liabilities as of November 28, 2025 were 6 years and 3.30%, respectively.
As of November 28, 2025, the maturities of lease liabilities under operating leases were as follows:
(in millions)
Fiscal YearOperating Leases
2026$89 
202798 
202883 
202965 
203057 
Thereafter93 
Total lease liabilities
$485 
Less: Imputed interest(47)
Present value of lease liabilities$438 

Historical Timeline

Fiscal YearFiled
2025Jan 15, 2026Showing above
2024Jan 13, 2025
2023Jan 17, 2024
2022Jan 17, 2023
2021Jan 21, 2022
2020Jan 15, 2021

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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