Constellation Energy CorpCEG

Constellation Energy Corp Leases Disclosure

10-KFiled Feb 24, 20263 min read
Leases
Lessee
We have operating leases for which we are the lessee. The significant types of operating leases are contracted generation and real estate. The following table outlines other terms and conditions of the lease agreements as of December 31, 2025. We did not have material finance leases in 2025, 2024, or 2023.
In Years
Remaining lease terms
1-30
Options to extend the term
2-30
Options to terminate within2
The components of operating lease costs were as follows:
For the Years Ended December 31,
202520242023
Operating lease costs$104 $105 $96 
Variable lease costs109 145 146 
Total lease costs(a)
$213 $250 $242 
__________
(a)Excludes $50 million of sublease income recorded for each of the years ended December 31, 2025, 2024, and 2023.
The following table provides additional information regarding the presentation of operating lease ROU assets and lease liabilities in the Consolidated Balance Sheets:
As of December 31,
20252024
Operating lease ROU assets(a)
Other deferred debits and other assets$371 $436 
Operating lease liabilities(a)
Other current liabilities72 72 
Other deferred credits and other liabilities433 511 
Total operating lease liabilities$505 $583 
__________
(a)The operating ROU assets and lease liabilities include $141 million and $241 million, respectively, related to contracted generation as of December 31, 2025, and $176 million and $289 million, respectively, as of December 31, 2024.
The weighted average remaining lease terms, in years, and the weighted average discount rates for operating leases were as follows:
As of December 31,
202520242023
Weighted average remaining lease term6.77.48.4
Weighted average discount rate5.1 %5.0 %5.0 %
The following table reconciles the undiscounted cash flows for our operating leases to the operating lease liabilities recorded on our consolidated balance sheet as of December 31, 2025:
2026$104 
2027104 
2028105 
2029103 
203063 
2031 and thereafter159 
Total lease payments638 
Less: Imputed interest133 
Operating lease liabilities$505 
Supplemental cash flow information related to operating leases was as follows:
For the Years Ended December 31,
202520242023
Cash paid for amounts included in the measurement of operating lease liabilities$90 $87 $102 
ROU assets obtained in exchange for operating lease obligations2 6 13 
Lessor
We have operating leases for which we are the lessor. The significant types of operating leases are contracted generation and real estate. The following table outlines other terms and conditions of the lease agreements as of December 31, 2025.
In Years
Remaining lease terms
1-15
Options to extend the term
5-20
The components of lease income were as follows:
For the Years Ended December 31,
202520242023
Operating lease income$51 $51 $51 
Variable lease income231 244 248 
The following table presents the lease payments we expect to receive over the remaining terms as of December 31, 2025:
2026$50 
202750 
202850 
202948 
20309 
2031 and thereafter29 
Total $236 

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 18, 2025
2023Feb 27, 2024
2022Feb 16, 2023

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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