ADVANCED MICRO DEVICES INCAMD

ADVANCED MICRO DEVICES INC Leases Disclosure

10-KFiled Feb 4, 20262 min read
Leases
Operating Leases
The Company has entered into operating and finance leases for its corporate offices, data centers, research and development facilities and certain equipment. The leases expire at various dates through 2038, some of which include options to extend the lease for up to ten years.
For 2025, 2024 and 2023, the Company recorded $196 million, $147 million and $127 million, respectively, of operating lease expense, including short-term lease expense. For 2025, 2024, and 2023, the Company recorded $100 million, $83 million, and $46 million respectively, of variable lease expense, which primarily included operating expenses and property taxes associated with the usage of facilities under the operating leases. For 2025, 2024, and 2023 cash paid for operating leases included in operating cash flows was $176 million, $155 million, and $147 million respectively. Certain operating leases contain provisions for escalating lease payments subject to changes in the consumer price index. The Company’s finance and short-term leases are immaterial to the Company’s Consolidated Financial Statements.
Supplemental information as of and for the year December 27, 2025 related to leases is as follows:
December 27,
2025		December 28,
2024
Weighted-average remaining lease term in years – operating leases6.957.28
Weighted-average discount rate – operating leases4.74 %4.63 %
Future minimum lease payments under non-cancellable operating lease liabilities as of December 27, 2025 are as follows:
Fiscal Year
20262027202820292031
2031 and thereafter
Total
(In millions)
Minimum lease payments
$192 $149 $120 $113 $100 $263 $937 
Less: interest
(153)
Present value of net minimum lease payments
784 
Less: current portion
159 
Total long-term operating lease liabilities
$625 
As of December 27, 2025, the Company has data center and other real estate leases that have not yet commenced with future lease payments of $1.3 billion. These leases are expected to commence in 2026 with lease terms of 1 year to 10 years.
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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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