Amneal Pharmaceuticals, Inc.AMRX
Amneal Pharmaceuticals, Inc. Leases Disclosure
Leases
The majority of the Company’s operating and financing lease portfolio consists of corporate offices, manufacturing sites, warehouse space, R&D facilities, and land. The Company’s leases have remaining lease terms of 1 year to 19 years (excluding international land easements with remaining terms of approximately 18-93 years). Rent expense for the years ended December 31, 2025, 2024 and 2023 was $23.4 million, $21.0 million, and $21.7 million, respectively.
Significant Lease Modifications in 2025
During 2025, the Company modified two facility leases that are significant to operations:
New Jersey R&D and Manufacturing Facility
On April 23, 2025, the Company renewed its lease for this facility, extending the term by ten years through November 30, 2035. Aggregate payments over the renewal period total approximately $11.6 million. The renewal was accounted for as a lease modification under ASC 842, resulting in remeasurement of the lease liability and right‑of‑use asset.
New York Manufacturing Facility (Related Party)
On May 7, 2025, the Company extended its lease for this facility by seven years through March 31, 2033. Aggregate payments over the extension period total approximately $12.4 million. The lessor is Sutaria Family Realty, LLC, a related party (refer to Note 22. Related Party Transactions). The extension was accounted for as a lease modification under ASC 842.
The components of total lease costs were as follows (in thousands):
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Lease Cost: | |||||||||||||||||
Operating lease cost (1) | $ | 18,771 | $ | 16,429 | $ | 16,734 | |||||||||||
| Finance lease cost: | |||||||||||||||||
| Amortization of right-of-use assets | 4,601 | 4,583 | 4,972 | ||||||||||||||
| Interest on lease liabilities | 4,388 | 4,542 | 4,583 | ||||||||||||||
| Total finance lease cost | 8,989 | 9,125 | 9,555 | ||||||||||||||
| Total lease cost | $ | 27,760 | $ | 25,554 | $ | 26,289 | |||||||||||
(1)Includes variable and short-term lease costs.
Supplemental balance sheet information related to the Company's leases was as follows (in thousands):
| Operating leases | December 31, 2025 | December 31, 2024 | |||||||||
| Operating lease right-of-use assets | $ | 38,832 | $ | 31,388 | |||||||
Operating lease right-of-use assets - related party (1) | 15,216 | 10,964 | |||||||||
| Total operating lease right-of-use assets | $ | 54,048 | $ | 42,352 | |||||||
| Operating lease liabilities | $ | 33,233 | $ | 24,814 | |||||||
Operating lease liabilities - related party (1) | 14,195 | 9,391 | |||||||||
| Current portion of operating lease liabilities | 8,668 | 9,435 | |||||||||
Current portion of operating lease liabilities - related party (1) | 2,705 | 3,396 | |||||||||
| Total operating lease liabilities | $ | 58,801 | $ | 47,036 | |||||||
| Financing leases | |||||||||||
| Financing lease right of use assets | $ | 53,328 | $ | 56,433 | |||||||
| Financing lease liabilities | $ | 54,927 | $ | 56,889 | |||||||
| Current portion of financing lease liabilities | 3,442 | 3,211 | |||||||||
| Total financing lease liabilities | $ | 58,369 | $ | 60,100 | |||||||
(1) Refer to Note 22. Related Party Transactions for information about related party leases.
Supplemental cash flow information related to leases was as follows (in thousands):
| Years Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
| Operating cash flows from finance leases | $ | 4,388 | $ | 4,542 | |||||||
| Operating cash flows from operating leases | $ | 17,085 | $ | 17,117 | |||||||
| Financing cash flows from finance leases | $ | 3,422 | $ | 3,251 | |||||||
| Non-cash activity: | |||||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 23,697 | $ | 9,981 | |||||||
| Right-of-use assets obtained in exchange for new financing lease liabilities | $ | 1,742 | $ | 1,889 | |||||||
The table below reflects the weighted average remaining lease term and weighted average discount rate for the Company's operating and finance leases:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Weighted average remaining lease term - operating leases | 5 years | 4 years | |||||||||
| Weighted average remaining lease term - finance leases | 17 years | 17 years | |||||||||
| Weighted average discount rate - operating leases | 10.1% | 9.6% | |||||||||
| Weighted average discount rate - finance leases | 7.3% | 7.3% | |||||||||
Maturities of lease liabilities as of December 31, 2025 were as follow (in thousands):
| Operating Leases | Financing Leases | ||||||||||
| 2026 | $ | 16,941 | $ | 7,585 | |||||||
| 2027 | 15,019 | 6,451 | |||||||||
| 2028 | 12,813 | 6,114 | |||||||||
| 2029 | 11,938 | 5,787 | |||||||||
| 2030 | 6,492 | 5,642 | |||||||||
| Thereafter | 16,001 | 68,247 | |||||||||
| Total lease payments | 79,204 | 99,826 | |||||||||
| Less: Imputed interest | (20,403) | (41,457) | |||||||||
| Total | $ | 58,801 | $ | 58,369 | |||||||
Maturities of lease liabilities as of December 31, 2024 were as follows (in thousands):
| Operating Leases | Financing Leases | ||||||||||
| 2025 | $ | 16,914 | $ | 7,508 | |||||||
| 2026 | 13,496 | 7,007 | |||||||||
| 2027 | 10,563 | 5,890 | |||||||||
| 2028 | 8,195 | 5,667 | |||||||||
| 2029 | 6,567 | 5,653 | |||||||||
| Thereafter | 3,019 | 73,907 | |||||||||
| Total lease payments | 58,754 | 105,632 | |||||||||
| Less: Imputed interest | (11,718) | (45,532) | |||||||||
| Total | $ | 47,036 | $ | 60,100 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 3, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 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.