Advantage Solutions Inc. Leases Disclosure
9. Leases
The Company leases facilities, and equipment under noncancelable leases that have been classified as operating leases for financial reporting purposes. These leases often include one or more options to renew and the lease term includes the renewal terms when it is reasonably certain that the Company will exercise the option. In general, for the Company’s material leases, the renewal options are not included in the calculation of its right-of-use assets and lease liabilities, as the Company does not believe that it is reasonably certain that these renewal options will be exercised. The Company’s lease agreements do not contain any material residual guarantees or material restrictive covenants.
All operating lease expenses are recognized on a straight-line basis over the lease term as a component of “Selling, general, and administrative expenses” in the Consolidated Statements of Operations and Comprehensive Loss. Payments under the Company’s lease arrangements are primarily fixed. However, certain lease agreements contain variable costs, which are expensed as incurred and not included in the calculation of the Company’s right-of-use assets and related liabilities for those leases. These costs typically include real estate taxes, common area maintenance and utilities for which the Company is obligated to pay under the terms of those leases.
During the years ended December 31, 2025, 2024, and 2023, the Company expensed approximately $11.8 million, $18.0 million and $26.5 million, respectively, of total operating lease costs, which includes $2.3 million, $2.0 million and $4.8 million of variable lease costs, respectively.
Based on the present value of the lease payments for the remaining lease term of the Company’s existing leases, the Company’s right-of-use assets and lease liabilities for operating leases as of December 31, 2025 and 2024 were as follows:
|
Classification |
|
|
December 31, |
|
|||||
(in thousands) |
|
|
|
2025 |
|
|
2024 |
|
||
Assets |
|
|
|
|
|
|
|
|
||
lease right-of-use assets |
Other assets |
|
|
$ |
22,261 |
|
|
$ |
25,932 |
|
Liabilities |
|
|
|
|
|
|
|
|
||
operating lease liabilities |
Other accrued expenses |
|
|
|
11,432 |
|
|
|
13,323 |
|
operating lease liabilities |
Other long-term liabilities |
|
|
|
20,703 |
|
|
|
24,648 |
|
Total lease liabilities |
|
|
|
$ |
32,135 |
|
|
$ |
37,971 |
|
Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. In determining its incremental borrowing rate, the Company reviewed the terms of its leases, its credit facilities, and other factors.
Information related to the Company’s right-of-use assets and related lease liabilities were as follows:
|
|
|
Year Ended December 31, |
|
||||||||||
(amounts in thousands) |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cash paid for operating lease liabilities |
|
|
|
$ |
10,044 |
|
|
$ |
18,518 |
|
|
$ |
25,527 |
|
Right-of-use assets obtained in exchange for new operating lease obligations |
|
|
|
|
6,251 |
|
|
|
855 |
|
|
|
18,187 |
|
Weighted-average remaining lease term |
|
|
|
4.7 years |
|
|
3.5 years |
|
|
3.8 years |
|
|||
Weighted-average discount rate |
|
|
|
|
10.8 |
% |
|
|
9.9 |
% |
|
|
9.8 |
% |
Maturities of lease liabilities as of December 31, 2025 were as follows:
(in thousands) |
|
|
|
|
2026 |
$ |
13,157 |
|
|
2027 |
|
8,575 |
|
|
2028 |
|
6,141 |
|
|
2029 |
|
5,194 |
|
|
2030 |
|
2,421 |
|
|
Thereafter |
|
7,576 |
|
|
Total lease payments |
|
43,064 |
|
|
Less: imputed interest |
|
(10,929 |
) |
|
Present value of lease liabilities |
$ |
32,135 |
|
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 3, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Mar 1, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 16, 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.