FTI CONSULTING, INCFCN

FTI CONSULTING, INC Leases Disclosure

10-KFiled Feb 26, 20262 min read
Leases
We lease office space and equipment under non-cancelable operating leases. See Note 1, “Description of Business and Summary of Significant Accounting Policies” for additional information on our accounting policies for leases. The table below summarizes the carrying amount of our operating lease assets and liabilities:
December 31,
LeasesClassification20252024
Assets
  Operating lease assetsOperating lease assets$201,492 $198,318 
Total lease assets$201,492 $198,318 
Liabilities
Current
  Operating lease liabilitiesAccounts payable, accrued expenses and other$37,211 $34,110 
Noncurrent
  Operating lease liabilitiesNoncurrent operating lease liabilities224,510 208,036 
Total lease liabilities$261,721 $242,146 
The table below summarizes total lease costs:
Year Ended December 31,
Lease Cost20252024
Operating lease costs$51,781 $50,519 
Variable lease costs and other17,927 17,488 
Total lease cost, net$69,708 $68,007 
The maturity analysis below summarizes the remaining future undiscounted cash flows for our operating leases and includes a reconciliation to operating lease liabilities reported on the Consolidated Balance Sheets:
 
As of
December 31, 2025
2026$54,594 
202755,681 
202845,078 
202934,468 
203029,145 
Thereafter107,628 
   Total future lease payments326,594 
   Less: imputed interest(64,873)
Total$261,721 
The table below includes cash paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount rate:
Year Ended December 31,
 20252024
Cash paid for amounts included in the measurement of operating lease liabilities$58,076$56,495
Operating lease assets obtained in exchange for lease liabilities$31,660$28,693
Weighted average remaining lease term (years)
   Operating leases7.37.6
Weighted average discount rate
   Operating leases
5.9%6.0%
On November 21, 2025, we entered into a material lease agreement to accept possession of three leases (the “Leases”) for our new office space in London, England. We expect to accept possession of the premises on or about September 25, 2027, subject to the satisfaction of certain conditions. The Leases will have a fixed term of 15 years, subject to a break option allowing the tenant, which is a wholly-owned subsidiary of the Company, to terminate the Leases at the end of the 10th year. At the end of the initial 15-year term, the tenant has a one-time contractual right to renew each of the Leases for a term of either five years or ten years. Fixed rental payments under the Leases are scheduled to commence in February 2028, payable in quarterly installments, and will aggregate to approximately $115.0 million. The Leases are not included within “Operating lease assets” and “Operating lease liabilities” on the Consolidated Balance Sheets as of December 31, 2025, as the Company does not yet have the right to use the premises.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 20, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 25, 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.

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