Booz Allen Hamilton Holding CorpBAH

Booz Allen Hamilton Holding Corp Leases Disclosure

10-KFiled May 22, 20262 min read
Leases
The Company's leases are generally for facilities and office space. The Company’s total lease cost is recorded primarily within general and administrative expenses on the consolidated statement of operations and consisted of the following:
Fiscal Year Ended
 March 31,
202620252024
Operating lease cost$61 $64 $64 
Short-term lease cost1 1 1 
Variable lease cost13 14 13 
Total operating lease costs$75 $79 $78 
Future minimum operating lease payments for noncancelable operating leases as of March 31, 2026 are as follows:
For the Fiscal Year Ending March 31,Operating Lease Payments
2027$62 
202853 
202935 
203029 
203124 
Thereafter9 
Total future lease payments212 
Less: imputed interest(30)
Total lease liabilities$182 
Supplemental cash flow information related to leases was as follows:
Fiscal Year Ended
 March 31,
202620252024
Cash paid for amounts included in the measurement of lease liabilities$67 $71 $76 
Operating lease liabilities arising from obtaining ROU assets (1)
$21 $54 $40 
(1) Includes all noncash increases and decreases arising from new or remeasured operating lease arrangements
Other information related to leases was as follows:
March 31,
20262025
Weighted average remaining lease term (in years)3.94.3
Weighted average discount rate5%5%
Leases Not Yet Commenced
On November 12, 2025, the Company entered into two 15-year lease agreements for corporate office space in Reston, Virginia that have not yet commenced as of March 31, 2026. The Company plans to relocate its headquarters to the office space in the fall of 2027, dependent upon the timing of the completion of various tenant improvements. Under these lease agreements, which were entered into by Booz Allen Hamilton and are guaranteed by the Company, the estimated total undiscounted base lease payments are $222 million and the agreements provide for up to $57 million in tenant improvement allowances.

Historical Timeline

Fiscal YearFiled
2026May 22, 2026Showing above
2025May 23, 2025
2024May 24, 2024
2023May 26, 2023
2022May 20, 2022
2021May 21, 2021
2020May 26, 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.

Other Available Disclosures

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