Equitable Holdings, Inc.EQH
Equitable Holdings, Inc. Leases Disclosure
LEASES
The Company’s operating leases primarily consist of real estate leases for office space. The Company also has operating leases for various types of office furniture and equipment. For certain equipment leases, the Company applies a portfolio approach to effectively account for the RoU operating lease assets and liabilities. For lease agreements for which the lease term or classification was reassessed after the occurrence of a change in the lease terms or a modification of the lease that did not result in a separate contract, the Company elected to combine the lease and related non-lease components for its operating leases; however, the non-lease components associated with the Company’s operating leases are primarily variable in nature and as such are not included in the determination of the RoU operating lease asset and lease liability, but are recognized in the period in which the obligation for those payments is incurred.
The Company’s operating leases may include options to extend or terminate the lease, which are not included in the determination of the RoU operating asset or lease liability unless they are reasonably certain to be exercised. The Company’s operating leases have remaining lease terms of 1 year to 20 years, some of which include options to extend the leases. The Company typically does not include its renewal options in its lease terms for calculating its RoU operating lease asset and lease liability as the renewal options allow the Company to maintain operational flexibility and the Company is not reasonably certain it will exercise these renewal options until close to the initial end date of the lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
As the Company’s operating leases do not provide an implicit rate, the Company’s incremental borrowing rate, based on the information available at the lease commencement date, is used in determining the present value of lease payments.
AB’s sublease income represents all revenues received from sub-tenants. It is primarily fixed base rental payments combined with variable reimbursements such as operating expenses, real estate taxes and employee parking. The vast majority of subtenant income is derived from our New York metro sub-tenant agreements. Sub-tenant income related to base rent is recorded on a straight-line basis.
Balance Sheet Classification of Operating Lease Assets and Liabilities
| December 31, | |||||||||||||||||
Balance Sheet Line Item | 2025 | 2024 | |||||||||||||||
(in millions) | |||||||||||||||||
| Assets: | |||||||||||||||||
| Operating lease assets | $ | 631 | $ | 618 | |||||||||||||
| Liabilities: | |||||||||||||||||
| Operating lease liabilities | $ | 712 | $ | 696 | |||||||||||||
The table below summarizes the components of lease costs:
Lease Costs
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
(in millions) | |||||||||||||||||
| Operating lease cost | $ | 107 | $ | 153 | $ | 161 | |||||||||||
| Variable operating lease cost | 18 | 44 | 51 | ||||||||||||||
| Sublease income | (3) | (33) | (53) | ||||||||||||||
| Net lease cost | $ | 122 | $ | 164 | $ | 159 | |||||||||||
Maturities of lease liabilities are as follows:
Maturities of Lease Liabilities
| December 31, 2025 | |||||
(in millions) | |||||
| Operating Leases: | |||||
| 2026 | $ | 107 | |||
| 2027 | 106 | ||||
| 2028 | 93 | ||||
| 2029 | 79 | ||||
| 2030 | 73 | ||||
| Thereafter | 488 | ||||
| Total lease payments | 946 | ||||
| Less: Interest | (234) | ||||
| Present value of lease liabilities | $ | 712 | |||
AB signed a lease that commenced during the first quarter of 2024, relating to approximately 166,000 square feet of space in New York City. Additionally, AB signed a lease for 100,000 square feet of space in Pune, India under a lease expiring in 2033. AB also leased approximately 51,000 square feet of space in San Antonio, Texas under a lease expiring in 2029. In Nashville, Tennessee approximately 219,000 square feet of space is expected to expire in 2036.
Equitable Financial signed a 15-year lease which commenced in 2023, relating to approximately 89,000 square feet of space in New York City. Additionally, during December 2021, Equitable Financial amended its Syracuse office lease. The amendment included extending for an additional 5-year period, commencing January 2024, approximately 143,000 square feet of space in Syracuse, NY. As of December 2024, the Company has reduced approximately 144,000 square feet in Charlotte, NC. A written notice was provided to the landlord back in December 2023, accompanied by an early termination penalty of $4 million.
The below table presents the Company’s weighted-average remaining operating lease term and weighted-average discount rate.
Weighted Averages - Remaining Operating Lease Term and Discount Rate
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Weighted-average remaining operating lease term | 12 years | 12 years | |||||||||
| Weighted-average discount rate for operating leases | 4.44 | % | 4.42 | % | |||||||
Supplemental cash flow information related to leases was as follows:
Lease Liabilities Information
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
(in millions) | |||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from operating leases | $ | 103 | $ | 126 | $ | 190 | |||||||||||
| Non-cash transactions: | |||||||||||||||||
| Leased assets obtained in exchange for new operating lease liabilities | $ | 73 | $ | 230 | $ | 124 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 27, 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.