Alkermes plc. Leases Disclosure
9. LEASES
All of the Company’s leases are accounted for as operating leases. At December 31, 2025 and 2024, the operating leases held by the Company had a weighted average incremental borrowing rate of 3.6% and 4.0%, respectively, and a weighted average remaining lease term of 5.8 years and 7.2 years, respectively. During the years ended December 31, 2025, 2024 and 2023, cash paid for amounts included for the measurement of lease liabilities was $10.3 million, $10.1 million and $10.3 million, respectively. The Company recorded operating lease expense of $7.5 million, $7.2 million and $10.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Future lease payments under non-cancelable leases as of December 31, 2025 consisted of the following:
|
|
December 31, |
|
|
(In thousands) |
|
2025 |
|
|
2026 |
|
|
10,480 |
|
2027 |
|
|
9,613 |
|
2028 |
|
|
9,677 |
|
2029 |
|
|
9,611 |
|
2030 |
|
|
9,345 |
|
Thereafter |
|
|
41,026 |
|
Total operating lease payments |
|
$ |
89,752 |
|
Less: imputed interest |
|
|
(19,753 |
) |
Total operating lease liabilities |
|
$ |
69,999 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 13, 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.