ENTEGRIS INCENTG

ENTEGRIS INC Leases Disclosure

10-KFiled Feb 23, 20232 min read
LEASES
As of December 31, 2022, the Company was obligated under operating lease agreements for certain office space and manufacturing facilities, manufacturing equipment, vehicles, information technology equipment and warehouse space. Our leases have remaining lease terms of 1 year to 19 years, some of which may include options to extend the lease for up to 10 years, and some of which may include options to terminate the leases within 1 year.
As of December 31, 2022 and 2021, the Company’s operating lease components with initial or remaining terms in excess of one year were classified on the consolidated balance sheets as follows, together with certain supplemental balance sheet
information:
(In thousands)
Classification20222021
Assets
Right-of-use assetsRight-of-use assets$94,940 $66,563 
Liabilities
Short-term lease liabilityOther accrued liabilities19,025 10,638 
Long-term lease liabilityLong-term lease liability80,716 60,101 
Total lease liabilities$99,741 $70,739 
Lease Term and Discount Rate
Weighted average remaining lease term (years)7.89.2
Weighted average discount rate4.1 %4.2 %
Expense for leases less than 12 months for the year ended December 31, 2022, 2021 and 2020 were not material. The components of lease expense for the year ended December 31, 2022, 2021 and 2020 are as follows:
(In thousands)
202220212020
Operating lease cost$17,997 $13,127 $13,576 
The Company combines the amortization of the right-of-use assets and the change in the operating lease liability in the same line item in the Statement of Cash Flows. Other information related to the Company’s operating leases for the year ended December 31, 2022, 2021 and 2020 are as follows:
(In thousands)
202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from leases$14,916 $11,009 $10,806 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$23,598 $31,492 $5,133 
Future minimum lease payments for noncancellable operating leases as of December 31, 2022, were as follows:
(In thousands)2022
One Year$22,817 
Two Years18,252 
Three Years13,990 
Four Years11,919 
Five Years10,455 
Beyond Five Years39,863 
Total$117,296 
Less: Interest17,555 
Present value of lease liabilities$99,741 

Historical Timeline

Fiscal YearFiled
2022Feb 23, 2023Showing above
2021Feb 4, 2022
2020Feb 5, 2021
2019Feb 7, 2020
2018Feb 11, 2019
2017Feb 15, 2018
2016Feb 17, 2017
2015Feb 29, 2016

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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