DEXCOM INCDXCM

DEXCOM INC Leases Disclosure

10-KFiled Feb 12, 20263 min read
5. Leases and Other Commitments
Leases
We have leases for certain machinery and facilities, including office, manufacturing and warehouse space facilities under various domestic and international operating and finance lease arrangements. We also have land leases in Penang, Malaysia that expire through 2082 and in Athenry, Ireland that expire in 3023 for the build-out of our international manufacturing facilities. Our leases, excluding our land leases in Malaysia and Ireland, have remaining lease terms of up to fifteen years. Some of the leases include one or more options to extend the leases for up to five years per option. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.
The following table sets forth the maturities of our operating and finance lease liabilities as of December 31, 2025:
(In millions)
Operating Leases(1)
Finance Leases
2026$25.9 $9.7 
202721.4 7.8 
202816.5 5.8 
20299.9 5.5 
20309.0 5.7 
Thereafter28.9 48.9 
Total future lease cost111.6 83.4 
Less: Imputed interest (16.6)(22.9)
Present value of future payments95.0 60.5 
Less: Current portion(21.6)(6.7)
Long-term portion$73.4 $53.8 
(1) Total future lease cost excludes $9.3 million of legally binding minimum lease payments for leases signed but not yet commenced.
Certain lease agreements require us to return designated areas of leased space to its original condition upon termination of the lease agreement, for which we record an asset retirement obligation and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. In subsequent periods, the asset retirement obligation is accreted for the change in its present value and the capitalized asset is depreciated, both over the term of the associated lease agreement. Asset retirement obligations of $20.6 million and $17.0 million as of December 31, 2025 and 2024, respectively, are included in other long-term liabilities in our consolidated balance sheets.
The components of lease expense were as follows:
Twelve Months Ended
December 31,
(In millions) 202520242023
Finance lease cost:
Amortization of finance leases
$8.3 $7.2 $6.5 
Interest on lease liabilities3.3 3.4 3.2 
Operating lease cost21.5 22.4 22.9 
Short-term lease cost5.1 3.8 2.4 
Variable lease cost8.4 9.0 8.3 
Total lease cost$46.6 $45.8 $43.3 
Other information related to our leases is as follows:
Twelve Months Ended
December 31,
(Dollars in millions)202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$28.6 $27.5 $28.1 
Operating cash flows from finance leases3.3 3.4 3.2 
Financing cash flows from finance leases6.9 13.0 4.7 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases30.4 8.8 7.5 
Finance leases$2.4 $14.6 $4.2 
Weighted average remaining lease term:
Operating leases5.9 years4.2 years5.0 years
Finance leases12.0 years12.6 years14.1 years
Weighted average discount rate:
Operating leases5.4 %6.1 %6.1 %
Finance leases5.3 %5.4 %5.3 %
Amortization of operating lease right-of-use asset included in cash flows from operating activities in our consolidated statements of cash flows was $16.7 million, $16.7 million, and $16.5 million for the twelve months ended December 31, 2025, 2024 and 2023, respectively.
Purchase Commitments
We are party to various purchase arrangements related to our operational, manufacturing, and research and development activities. We had approximately $1.25 billion and $954.9 million of open purchase orders and other contractual obligations in the ordinary course of business, the majority of which are due within one year, as of December 31, 2025 and December 31, 2024, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 18, 2025
2023Feb 8, 2024
2022Feb 9, 2023
2021Feb 14, 2022
2020Feb 11, 2021
2019Feb 13, 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.

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