Huron Consulting Group Inc.HURN
Huron Consulting Group Inc. Leases Disclosure
Leases
We lease office space, data centers and certain equipment under operating leases expiring on various dates through 2033, with various renewal options that can extend the lease terms by to ten years. Our operating leases include fixed payments plus, in some cases, scheduled base rent increases over the term of the lease. Certain leases require variable payments of real estate taxes, insurance and operating expenses. We exclude these variable payments from the measurements of our lease liabilities and expense them as incurred. We elected the practical expedient to combine lease and nonlease components. No lease agreements contain any residual value guarantees or material restrictive covenants. As of December 31, 2025, we have not entered into any material finance leases. We sublease certain office spaces to third parties resulting from restructuring activities in certain locations.
Lease Impairment Charges
Operating lease right-of-use (“ROU”) assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group to which the operating lease ROU asset is assigned may not be recoverable. First, we test the asset group for recoverability by comparing the undiscounted cash flows of the asset group, which include expected future lease and nonlease payments related to the lease agreement offset by expected sublease income, to the carrying amount of the asset group. If the first step of the long-lived asset impairment test concludes that the carrying amount of the asset group is not recoverable, we perform the second step of the long-lived asset impairment test by comparing the fair value of the asset group to its carrying amount and recognizing a lease impairment charge for the amount by which the carrying amount exceeds the fair value. To estimate the fair value of the asset group, we rely on a discounted cash flow approach using market participant assumptions of the expected cash flows and discount rate.
During the years ended December 31, 2025, 2024, and 2023 we recognized non-cash lease-related impairment charges of $0.7 million, $3.5 million, and $6.3 million, respectively.
2025
During 2025, we recognized a $0.7 million lease-related impairment charge on the operating lease ROU asset related to our previously vacated office space in Lexington, Massachusetts. This impairment charge was driven by updated sublease assumptions for the office space.
2024
During 2024 we exited our office space previously occupied by GG+A and a portion of our office space in New York, New York, resulting in non-cash impairment charges of $2.7 million, of which $2.0 million was allocated to the operating lease ROU assets and $0.7 million was allocated to the related fixed assets based on their relative carrying amounts. Additionally, in 2024, we recognized $0.8 million of lease-related impairment charges driven by updated sublease assumptions for our previously vacated office spaces in Lexington, Massachusetts; and Lake Oswego, Oregon. Of the $0.8 million, $0.7 million was allocated to the fixed assets related to the office spaces and $0.1 million was allocated to the operating lease ROU assets based on their relative carrying amounts.
2023
During 2023, we exited our office spaces in Hillsboro, Oregon and Lexington, Massachusetts, resulting in non-cash impairment charges of $5.4 million, of which $4.0 million was allocated to the operating lease ROU assets and $1.4 million was allocated to the related fixed assets based on their relative carrying amounts. Additionally, in 2023, we recognized $0.9 million of lease-related impairment charges driven by updated sublease assumptions for our previously vacated office spaces in Hillsboro, Oregon; New York, New York; and Lake Oswego, Oregon. Of the $0.9 million, $0.5 million was allocated to the fixed assets related to the office spaces and $0.4 million was allocated to the operating lease ROU assets based on their relative carrying amounts.
See Note 11 “Restructuring Charges” for additional information on our restructuring activities.
Additional information on our operating leases as of December 31, 2025 and 2024 follows.
| As of December 31, | ||||||||||||||
| Balance Sheet | 2025 | 2024 | ||||||||||||
| Operating lease right-of-use assets | $ | 20,027 | $ | 19,176 | ||||||||||
| Current maturities of operating lease liabilities | $ | 14,304 | $ | 12,315 | ||||||||||
| Operating lease liabilities, net of current portion | 24,371 | 29,686 | ||||||||||||
| Total lease liabilities | $ | 38,675 | $ | 42,001 | ||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| Lease Cost | 2025 | 2024 | 2023 | |||||||||||||||||
| Operating lease cost | 8,143 | $ | 7,939 | $ | 8,514 | |||||||||||||||
Short-term lease cost(1) | 1,698 | 565 | 608 | |||||||||||||||||
| Variable lease costs | 5,648 | 4,935 | 3,908 | |||||||||||||||||
| Sublease income | (3,609) | (2,446) | (2,157) | |||||||||||||||||
Net lease cost(2) | 11,880 | $ | 10,993 | $ | 10,873 | |||||||||||||||
(1)Includes variable lease costs related to short-term leases.
(2)Net lease cost includes $2.9 million, $2.2 million and $1.8 million for the years ended December 31, 2025, 2024 and 2023, respectively, recorded as restructuring charges as they relate to vacated office spaces. See Note 11 “Restructuring Charges” for additional information on our vacated office spaces.
The table below summarizes the remaining expected lease payments under our operating leases as of December 31, 2025.
| Future Lease Payments | December 31, 2025 | |||||||
| 2026 | $ | 15,780 | ||||||
| 2027 | 10,987 | |||||||
| 2028 | 7,674 | |||||||
| 2029 | 5,295 | |||||||
| 2030 | 1,595 | |||||||
| Thereafter | 512 | |||||||
| Total operating lease payments | $ | 41,843 | ||||||
| Less: imputed interest | (3,168) | |||||||
Present value of operating lease liabilities | $ | 38,675 | ||||||
| Year Ended December 31, | ||||||||||||||||||||
| Other Information | 2025 | 2024 | 2023 | |||||||||||||||||
| Cash paid for operating lease liabilities | $ | 14,886 | $ | 13,458 | $ | 13,107 | ||||||||||||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 8,619 | $ | 4,286 | $ | 4,678 | ||||||||||||||
| Weighted average remaining lease term - operating leases | 3.3 years | 3.7 years | 4.5 years | |||||||||||||||||
| Weighted average discount rate - operating leases | 4.8% | 4.3 | % | 4.4 | % | |||||||||||||||
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.