Emergent BioSolutions Inc.EBS

Emergent BioSolutions Inc. Leases Disclosure

10-KFiled Feb 27, 20262 min read
Leases
The Company is the lessee for operating leases for offices, R&D facilities and manufacturing facilities. The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use assets and liabilities. The Company's leases have remaining lease terms of less than one year to approximately 9 years. Most leases included one or more options to renew, with renewal terms that can extend the lease term up to five years.
The components of lease expense were as follows:
Year Ended December 31,
2025
2024
2023
Operating lease cost:
Amortization of right-of-use assets$2.5 $3.2 $4.0 
Interest on lease liabilities0.8 0.8 0.8 
Total operating lease cost$3.3 $4.0 $4.8 
Operating lease costs are reflected as components of “Cost of products and services sales, net", “R&D” expense and “SG&A” expense on the Company's Consolidated Statements of Operations.
Supplemental balance sheet information related to leases was as follows:
December 31,
Leases
Classification
2025
2024
Operating lease right-of-use assetsOther assets$10.6 $11.7 
Operating lease liabilities, current portionOther current liabilities$2.4 $2.7 
Operating lease liabilitiesOther liabilities9.2 9.7 
Total operating lease liabilities$11.6 $12.4 
Operating leases:
Weighted average remaining lease term (years)5.25.8
Weighted average discount rate6.5 %5.5 %
The maturity analysis below summarizes future undiscounted cash flows for our operating leases as of December 31, 2025:
Year
As of December 31, 2025
20263.4 
20273.1 
20282.7 
20292.4 
20302.0 
Thereafter3.3 
Total undiscounted lease liabilities16.9 
Less: Imputed interest5.3 
Total lease liabilities$11.6 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 4, 2025
2023Mar 8, 2024
2022Mar 1, 2023
2021Feb 25, 2022
2020Feb 19, 2021
2019Feb 25, 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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