ARROW ELECTRONICS, INC. Leases Disclosure
14. Lease Commitments
The company leases certain offices, distribution centers, and other property under non-cancellable operating leases expiring at various dates through 2036. Substantially all leases are classified as operating leases. The company recorded operating lease costs of $109.1 million, $98.0 million, and $93.4 million in 2025, 2024, and 2023, respectively.
The following amounts were recorded in the consolidated balance sheets at December 31:
(thousands) | | 2025 | | 2024 | ||
Operating Leases |
| |
| | ||
$ | 248,823 | $ | 251,129 | |||
$ | 76,537 | $ | 68,941 | |||
| 186,721 |
| 198,466 | |||
$ | 263,258 | $ | 267,407 | |||
Maturities of operating lease liabilities at December 31 were as follows:
(thousands) | | 2025 | |
2026 | $ | 87,157 | |
2027 |
| 72,935 | |
2028 |
| 55,371 | |
2029 |
| 30,987 | |
2030 |
| 18,963 | |
Thereafter |
| 31,200 | |
Total lease payments |
| 296,613 | |
Less: imputed interest |
| (33,355) | |
Total | $ | 263,258 | |
Other information pertaining to leases consists of the following for the year ended December 31:
(thousands) | | 2025 | | 2024 | ||
Supplemental Cash Flow Information |
| |
| | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 88,656 | $ | 94,829 | ||
Right-of-use assets obtained in exchange for operating lease obligations |
| 52,287 |
| 62,583 | ||
Operating Lease Term and Discount Rate |
| |
| | ||
Weighted-average remaining lease term in years |
| 4 years |
| 5 years | ||
Weighted-average discount rate |
| 4.9% |
| 5.4% | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 11, 2026 | Showing above |
| 2024 | Feb 11, 2025 | |
| 2023 | Feb 13, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 7, 2019 | |
| 2017 | Feb 6, 2018 | |
| 2016 | Feb 7, 2017 | |
| 2015 | Feb 5, 2016 | |
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.