HARMONIC INC. Leases Disclosure
NOTE 4. LEASES
The components of lease expense are as follows:
|
|
Year Ended December 31, |
|||
(in thousands) |
2025 |
|
2024 |
||
Operating lease cost |
$ |
6,812 |
|
$ |
6,943 |
Variable lease cost |
|
1,228 |
|
|
1,537 |
Total lease cost |
$ |
8,040 |
|
$ |
8,480 |
Supplemental cash flow information related to leases are as follows:
|
|
Year Ended December 31, |
|||
(in thousands) |
2025 |
|
2024 |
||
Cash paid for operating lease liabilities |
$ |
6,166 |
|
$ |
7,163 |
Right-of-use assets obtained in exchange for operating lease obligations |
$ |
5,028 |
|
$ |
489 |
During the year ended December 31, 2025, we recorded lease-related impairment and other charges of $1.6 million, which consisted of $0.4 million in right-of-use asset impairments, $0.3 million in leasehold improvement impairments, and $0.9 million related to the fair value of other unrecoverable facility costs.
During the year ended December 31, 2024, we recorded lease-related impairment and other charges of $10.9 million, which consisted of $3.9 million in right-of-use asset impairments, $4.3 million in leasehold improvement impairments, and $2.7 million related to the fair value of other unrecoverable facility costs.
For asset groups where impairment was triggered, the Company utilized an income approach to value the asset groups by developing discounted cash flow models. The assumptions used in the discounted cash flow models for each of the asset groups included projected sublease income over the remaining lease terms, expected downtime prior to the commencement of future subleases, expected lease incentives offered to future tenants, and discount rates that reflected the level of risk associated with these future cash flows.
Other information related to leases are as follows:
|
Year Ended December 31, |
||||
|
2025 |
|
2024 |
||
Operating leases |
|
|
|
|
|
Weighted-average remaining lease term (years) |
|
4.3 |
|
|
5.0 |
Weighted-average discount rate |
|
6.6% |
|
|
6.5% |
Future minimum lease payments under non-cancelable operating leases as of December 31, 2025 are as follows (in thousands):
Years ending December 31, |
|
|
|
|
|
2026 |
|
|
|
$ |
6,665 |
2027 |
|
|
|
|
5,632 |
2028 |
|
|
|
|
4,567 |
2029 |
|
|
|
|
3,985 |
2030 |
|
|
|
|
1,851 |
Thereafter |
|
|
|
|
1,267 |
Total future minimum lease payments |
|
|
|
$ |
23,967 |
Less: imputed interest |
|
|
|
|
(2,870) |
Total lease liability balance |
|
|
|
$ |
21,097 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
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.