EMERSON ELECTRIC COEMR

EMERSON ELECTRIC CO Leases Disclosure

10-KFiled Nov 10, 20252 min read
LEASES
The components of lease expense for the years ended September 30 were as follows:
2023 2024 2025 
Operating lease expense$178 208 201 
Variable lease expense$20 24 21 

Short-term lease expense and sublease income were immaterial for the years ended September 30, 2025, 2024 and 2023. Cash paid for operating leases is classified within operating cash flows from continuing operations and was $190, $202 and $170 for the years ended September 30, 2025, 2024 and 2023, respectively. Operating lease right-of-use asset additions were $141, $250 and $247 for the years ended September 30, 2025, 2024 and 2023, respectively.

The following table summarizes the balances of the Company's operating lease right-of-use assets and operating lease liabilities as of September 30, 2024 and 2025, the vast majority of which relates to offices and manufacturing facilities:
2024 2025 
Right-of-use assets (Other assets)$692 637 
Current lease liabilities (Accrued expenses)$158 138 
Noncurrent lease liabilities (Other liabilities)$511 505 

The weighted-average remaining lease term for operating leases was 7.3 years and 7.7 years, and the weighted-average discount rate was 4.4 percent and 4.4 percent as of September 30, 2025 and September 30, 2024, respectively.

Future maturities of operating lease liabilities as of September 30, 2025 are summarized below:
2025 
2026$170 
2027131 
202898 
202972 
203053 
Thereafter244 
Total lease payments768 
Less: Interest125 
Total lease liabilities$643 

Lease commitments that have not yet commenced were immaterial as of September 30, 2025.

Historical Timeline

Fiscal YearFiled
2025Nov 10, 2025Showing above
2024Nov 12, 2024
2023Nov 13, 2023
2022Nov 14, 2022
2021Nov 15, 2021
2020Nov 16, 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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