GLOBUS MEDICAL INCGMED

GLOBUS MEDICAL INC Leases Disclosure

10-KFiled Feb 24, 20263 min read
LEASES
The Company leases certain equipment, vehicles, office and storage facilities via various operating and financing lease agreements. Our leases have initial lease terms ranging from one year to seventeen years. Certain lease agreements require the Company to pay taxes, insurance, and maintenance, and provide for options to extend the term beyond the initial lease termination date. We use judgment to determine whether it is reasonably possible that we will extend the lease beyond the initial term and the length of the possible extension. Leases that have terms of less than 12 months are treated as short-term and we do not recognize right-of-use assets or lease liabilities for such leases. We generally estimate discount rates using our incremental borrowing rate, and based on other information available, at commencement date of a lease when determining the present value of future payments, as most of our leases do not provide an implicit rate.
The Company includes financing lease right-of-use assets in other assets, short-term financing lease liabilities in accrued expenses, and long-term financing lease liabilities in other liabilities on the consolidated balance sheet. Operating lease expense is recognized on a straight-line basis over the term of the lease, as a component of operating income on the consolidated statement of operations and
comprehensive income. Finance leases amortize the right-of-use assets and amortize the interest on the lease liability over the term of the lease.
Amounts reported in the consolidated balance sheet were as follows for the years ended December 31, 2025 and 2024:
December 31,
(In thousands)20252024
Asset:
Operating lease right-of-use asset$63,786 $49,647 
Finance lease right-of-use asset 718 518 
Total leased assets$64,504 $50,165 
Liabilities:
Current:
Operating lease liability 14,738 10,249 
Finance lease liability348 233 
Long-term:
Operating lease liability 103,918 83,588 
Finance lease liability436 298 
Total lease liabilities$119,440 $94,368 
The table below summarizes the Company’s lease costs arising from the operating and financing lease obligations for the years ended December 31, 2025, 2024, and 2023:
Year Ended
December 31,
(In thousands)202520242023
Lease expense:
Operating lease expense$23,369 $25,272 $19,471 
Finance lease expense
Depreciation of right-of-use asset333 585 903 
Interest expense on lease liabilities38 92 67 
Total lease expense$23,740 $25,949 $20,441 
Future minimum lease payments under non-cancellable leases as of December 31, 2025 are as follows:
(In thousands)Finance
Leases		Operating
Leases
2026$380 $22,512 
2027274 21,147 
2028155 18,514 
202938 18,007 
20303 17,979 
Thereafter— 57,956 
Total minimum lease payments$849 $156,115 
Less: amount representing interest(65)(37,459)
Present value of obligations under leases784 118,656 
Less: current portion(348)(14,738)
Long-term lease obligations$436 $103,918 
The table below summarizes the Company’s supplemental cash flow information and assumptions used for the years ended December 31, 2025, 2024, and 2023:
Year Ended
December 31,
(In thousands, except weighted average lease term and discount rate)202520242023
Other supplemental cash flow information:
Cash paid for amounts included in measurement of lease liabilities
Operating cash flows from operating leases$21,627 $14,300 $19,773 
Operating cash flows for finance leases40 92 67 
Financing cash flows for finance leases334 1,003 913 
Total cash paid for amounts included in the measurement of lease liabilities$22,001 $15,395 $20,753 
Right-of-use assets obtained in exchange for lease obligations
Operating leases$17,540 $2,289 $9,043 
Financing leases$520 $394 $— 
Weighted-average remaining lease term
Operating leases7.67.714.9
Financing leases3.52.42.6
Weighted-average discount rate
Operating leases7.7%4.8%8.3%
Financing leases5.9%5.3%4.4 %
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Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2021Feb 17, 2022
2020Feb 17, 2021
2019Feb 20, 2020
2018Feb 21, 2019
2017Feb 22, 2018
2016Mar 16, 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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