GLOBAL PAYMENTS INCGPN
GLOBAL PAYMENTS INC Leases Disclosure
LEASES
Our leases consist primarily of operating real estate leases for office space and data centers in the markets in which we conduct business. We also have operating and finance leases for computer and other equipment. Many of our leases include escalating rental payments and incentives, as well as termination and renewal options. Certain of our lease agreements provide that we pay the cost of property taxes, insurance and maintenance.
As of December 31, 2025 and 2024, right-of-use assets and lease liabilities consisted of the following:
| Balance Sheet Location | December 31, 2025 | December 31, 2024 | ||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Assets: | ||||||||||||||||||||
| Operating lease right-of-use assets: | ||||||||||||||||||||
| Real estate | $ | 250,323 | $ | 247,386 | ||||||||||||||||
| Other | Other noncurrent assets | 32 | 116 | |||||||||||||||||
| Total operating lease right-of-use-assets | $ | 250,355 | $ | 247,502 | ||||||||||||||||
| Finance lease right-of-use assets: | ||||||||||||||||||||
| Computer equipment | $ | 259 | $ | 244 | ||||||||||||||||
| Other equipment | Property and equipment, net | 90,174 | 52,365 | |||||||||||||||||
| 90,433 | 52,609 | |||||||||||||||||||
| Less accumulated depreciation: | ||||||||||||||||||||
| Computer equipment | Property and equipment, net | (212) | (87) | |||||||||||||||||
| Other equipment | Property and equipment, net | (53,847) | (39,021) | |||||||||||||||||
| Total accumulated depreciation | (54,059) | (39,108) | ||||||||||||||||||
| Total finance lease right-of-use assets | 36,374 | 13,501 | ||||||||||||||||||
Total right-of-use assets(1) | $ | 286,729 | $ | 261,003 | ||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Operating lease liabilities (current) | $ | 58,065 | $ | 59,820 | ||||||||||||||||
| Operating lease liabilities (noncurrent) | 305,797 | 330,206 | ||||||||||||||||||
| Finance lease liabilities (current) | 8,598 | 5,953 | ||||||||||||||||||
| Finance lease liabilities (noncurrent) | 12,669 | 4,968 | ||||||||||||||||||
| Total lease liabilities | $ | 385,129 | $ | 400,947 | ||||||||||||||||
(1) As of December 31, 2025 and 2024, approximately 70% and 71%, respectively, of our right-of-use assets were located in the United States.
The weighted-average remaining lease term for operating and finance leases at December 31, 2025 was 8.1 years and 3.2 years, respectively. The weighted-average remaining lease term for operating and finance leases at December 31, 2024 was 8.2 years and 3.0 years, respectively. As of December 31, 2025, the weighted-average discount rate used in the measurement of operating and finance lease liabilities was 4.2% and 4.8%, respectively. As of December 31, 2024, the weighted-average discount rate used in the measurement of operating and finance lease liabilities was 4.0% and 4.0%, respectively.
As of December 31, 2025, maturities of lease liabilities were as follows:
| Operating Leases | Finance Leases | |||||||||||||
| (in thousands) | ||||||||||||||
| Year ending December 31, | ||||||||||||||
| 2026 | $ | 71,304 | $ | 9,355 | ||||||||||
| 2027 | 66,024 | 6,661 | ||||||||||||
| 2028 | 58,158 | 5,192 | ||||||||||||
| 2029 | 45,980 | 1,458 | ||||||||||||
| 2030 | 38,027 | — | ||||||||||||
| 2031 and thereafter | 151,673 | — | ||||||||||||
| Total lease payments | 431,166 | 22,666 | ||||||||||||
| Imputed interest | (67,304) | (1,399) | ||||||||||||
| Total lease liabilities | $ | 363,862 | $ | 21,267 | ||||||||||
Operating lease costs in our consolidated statement of income for the year ended December 31, 2025 were $62.6 million, including $57.3 million in selling, general and administrative expenses and $5.3 million in cost of services. Total lease costs for the year ended December 31, 2025 include variable lease costs of $17.6 million, which are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs for the year ended December 31, 2025 were $10.2 million, including $9.5 million of amortization on right-of use assets and $0.7 million of interest on lease liabilities. Lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2025.
Operating lease costs in our consolidated statement of income for the year ended December 31, 2024 were $85.3 million, including $79.7 million in selling, general and administrative expenses and $5.6 million in cost of services. Total lease costs for the year ended December 31, 2024 include variable lease costs of $13.0 million, which are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs for the year ended December 31, 2024 were $9.0 million, including $8.6 million of amortization on right-of use assets and $0.4 million of interest on lease liabilities. Lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2024.
Operating lease costs in our consolidated statement of income for the year ended December 31, 2023 were $73.0 million, including $66.6 million in selling, general and administrative expenses and $6.4 million in cost of services. Total lease costs for the year ended December 31, 2023 include variable lease costs of $15.2 million, which are primarily comprised of the cost of property taxes, insurance and maintenance. Finance lease costs for the year ended December 31, 2023 were $11.2 million, including $10.5 million of amortization on right-of use assets and $0.7 million of interest on lease liabilities. Lease costs for leases with a term of less than 12 months were not material for the year ended December 31, 2023.
The following cash flow discussion relates to continuing and discontinued operations. Cash paid for amounts included in the measurement of operating lease liabilities for the years ended December 31, 2025, 2024 and 2023 was $62.7 million, $62.2 million and $78.3 million, respectively, which are included as a component of cash provided by operating activities in the consolidated statements of cash flows. Operating lease liabilities arising from obtaining new or modified right-of-use assets, net of reductions resulting from certain lease modifications, were $56.2 million, $22.7 million and $28.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. Cash paid for amounts included in the measurement of finance lease liabilities that is included as a component of cash used in financing activities in the consolidated statements of cash flows was $21.6 million, $12.8 million and $10.4 million for the years ended December 31, 2025, 2024 and 2023, respectively. Finance lease liabilities arising from obtaining new or modified right-of-use assets, net of reductions resulting from certain lease modifications, were $30.1 million, $9.4 million for the years ended December 31, 2025 and 2024, respectively.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 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.