AGCO CORP /DEAGCO

AGCO CORP /DE Leases Disclosure

10-KFiled Feb 13, 20263 min read
LEASES
    Total lease assets and liabilities at December 31, 2025 and 2024 were as follows (in millions):

Lease AssetsClassification
As of December 31, 2025
As of December 31, 2024
Operating ROU assetsRight-of-use lease assets$167.3 $168.9 
Finance lease assets
Property, plant and equipment, net(1)
6.5 6.1 
Total lease assets$173.8 $175.0 
Lease LiabilitiesClassificationAs of December 31, 2025As of December 31, 2024
Current:
OperatingAccrued expenses$47.9 $45.0 
FinanceOther current liabilities0.3 0.5 
Noncurrent:
OperatingOperating lease liabilities122.1 127.5 
FinanceOther noncurrent liabilities5.7 5.1 
Total lease liabilities$176.0 $178.1 
____________________________________
(1)    Finance lease assets are recorded net of accumulated depreciation of $3.0 million and $2.8 million as of December 31, 2025 and 2024, respectively.

    Total lease costs for 2025 and 2024 are set forth below (in millions):

Classification
Year Ended
December 31, 2025
Year Ended
December 31, 2024
Operating lease costSelling, general and administrative expenses$62.2 $59.6 
Variable lease costSelling, general and administrative expenses5.2 4.8 
Short-term lease costSelling, general and administrative expenses18.5 23.4 
Finance lease cost:
Amortization of lease assets
Depreciation expense(1)
0.4 0.5 
Interest on lease liabilitiesInterest expense, net0.2 0.2 
Total lease cost$86.5 $88.5 
____________________________________
(1)    Depreciation expense was included in both “Cost of goods sold” and “Selling, general and administrative expenses” within the Company's Consolidated Statements of Operations.
    Lease payment amounts for operating and finance leases with remaining terms greater than one year as of December 31, 2025 were as follows (in millions):
December 31, 2025
Operating Leases(1)
Finance Leases
2026$55.5 $0.6 
202740.5 0.4 
202831.8 0.3 
202923.5 0.3 
203011 0.2 
Thereafter37.5 6.0 
Total lease payments199.8 7.8 
Less: imputed interest(2)
(29.9)(2.0)
Present value of lease liabilities$169.9 $5.8 
____________________________________
(1)    Operating lease payments include options to extend or terminate at the Company's sole discretion, which are included in the determination of lease term when they are reasonably certain to be exercised.
(2)    Calculated using the implicit interest rate for each lease or the Company’s incremental borrowing rate, when implicit rate is not available.

    Lease payment amounts for operating and finance leases with remaining terms greater than one year as of December 31, 2024 were as follows (in millions):
December 31, 2024
Operating Leases(1)
Finance Leases
2025$53.3 $0.7 
202643.9 0.5 
202729.7 0.4 
202822.6 0.3 
202915.2 0.2 
Thereafter42.2 5.5 
Total lease payments206.9 7.6 
Less: imputed interest(2)
(34.4)(2.0)
Present value of lease liabilities$172.5 $5.6 
____________________________________
(1)    Operating lease payments include options to extend or terminate at the Company's sole discretion, which are included in the determination of lease term when they are reasonably certain to be exercised.
(2)    Calculated using the implicit interest rate for each lease or the Company’s incremental borrowing rate, when implicit rate is not available.
    The following table summarizes the weighted-average remaining lease term and weighted-average discount rate:

As of December 31, 2025
As of December 31, 2024
Weighted-average remaining lease term:
Operating leases6 years6 years
Finance leases16 years16 years
Weighted-average discount rate:
Operating leases6.3 %6.4 %
Finance leases2.9 %2.8 %

    The following table summarizes the supplemental cash flow information for 2025 and 2024 (in millions):

Year Ended December 31, 2025
Year Ended December 31, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$62.2 $59.5 
Operating cash flows from finance leases0.1 0.1 
Financing cash flows from finance leases0.7 1.0 
Leased assets obtained in exchange for lease obligations:
Operating leases$38.2 $61.9 
Finance leases0.5 0.2 

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 24, 2025
2023Feb 27, 2024
2022Mar 1, 2023
2021Feb 25, 2022
2020Mar 1, 2021
2019Feb 28, 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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