ADVANCED ENERGY INDUSTRIES INC Leases Disclosure
NOTE 6.LEASES
Components of total operating lease cost were as follows:
Years Ended December 31, | ||||||||||
| 2025 | | 2024 | | 2023 | |||||
(in millions) | ||||||||||
Operating lease cost | $ | 25.7 | $ | 23.8 | $ | 22.6 | ||||
Short-term and variable lease cost | 5.7 | 3.1 | 4.2 | |||||||
Total operating lease cost | $ | 31.4 | $ | 26.9 | $ | 26.8 | ||||
Estimated future payments on our operating lease liabilities are as follows:
Year Ending December 31, | | (in millions) | |
2026 | $ | 22.9 | |
2027 |
| 19.7 | |
2028 |
| 19.4 | |
2029 | 16.1 | ||
2030 | 14.6 | ||
Thereafter | 54.4 | ||
Total lease payments | 147.1 | ||
Less: Interest | (35.6) | ||
Present value of lease liabilities | $ | 111.5 |
In addition to the above, we have a lease agreement with total payments of $6.4 million that commences in the first quarter of 2026 and extends through 2035.
The following tables present additional information about our lease agreements:
December 31, | December 31, | ||||||
| 2025 | | 2024 | ||||
Weighted average remaining lease term (in years) | | 8.2 | 8.4 | ||||
Weighted average discount rate |
| 6.4 | % | 6.1 | % | ||
Years Ended December 31, | |||||||||
| 2025 | | 2024 | 2023 | |||||
(in millions) | |||||||||
Cash paid for operating leases | $ | 26.8 | $ | 23.7 | $ | 23.0 | |||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 19.7 | $ | 41.1 | $ | 14.3 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Mar 2, 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.