INTEGRA LIFESCIENCES HOLDINGS CORPIART
INTEGRA LIFESCIENCES HOLDINGS CORP Leases Disclosure
LEASES AND RELATED PARTY LEASES
The Company leases administrative, manufacturing, research and distribution facilities and vehicles through operating lease agreements. The Company has no material finance leases as of December 31, 2025. Many of the Company’s leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area or other maintenance costs). For vehicles, the Company has elected the practical expedient to group lease and non-lease components.
Most facility leases include one or more options to renew. The exercise of lease renewal options is typically at the Company’s sole discretion, therefore, the majority of renewals to extend the lease terms are not included in the Right of Use (“ROU”) assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates renewal options and when they are reasonably certain of exercise, the renewal period is included in the lease term.
As most of the Company’s leases do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.
Total operating lease expense for the year ended December 31, 2025 and 2024, was $23.9 million and $24.3 million, respectively, which includes $0.3 million, in related party operating lease expense.
Supplemental balance sheet information related to operating leases at December 31, 2025 were as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||
| (In thousands, except lease term and discount rate) | |||||||||||
| ROU assets | $ | 140,568 | $ | 144,042 | |||||||
| Current lease liabilities | 14,019 | 14,540 | |||||||||
| Non-current lease liabilities | 163,059 | 166,930 | |||||||||
| Total lease liabilities | $ | 177,078 | $ | 181,470 | |||||||
| Weighted average remaining lease term (in years): | |||||||||||
| Leased facilities | 15.7 years | 16.1 years | |||||||||
| Leased vehicles | 2.7 years | 2.3 years | |||||||||
| Leased equipment | 2.9 years | 1.6 years | |||||||||
| Weighted average discount rate: | |||||||||||
| Leased facilities | 5.4 | % | 5.4 | % | |||||||
| Leased vehicles | 3.2 | % | 2.8 | % | |||||||
| Leased equipment | 6.9 | % | 8.3 | % | |||||||
Supplemental cash flow information related to leases was as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||
| (In thousands) | |||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
| Operating cash flows from operating leases | $ | 23,153 | $ | 24,122 | |||||||
| ROU assets obtained in exchange for lease liabilities, net of modifications: | |||||||||||
| Operating leases | $ | 12,138 | $ | 3,565 | |||||||
Future minimum lease payments under operating leases at December 31, 2025 were as follows:
| Related Parties | Third Parties | Total | |||||||||||||||
| (In thousands) | |||||||||||||||||
| 2026 | $ | 296 | $ | 18,726 | $ | 19,022 | |||||||||||
| 2027 | 296 | 21,721 | 22,017 | ||||||||||||||
| 2028 | 296 | 18,987 | 19,283 | ||||||||||||||
| 2029 | 246 | 18,635 | 18,881 | ||||||||||||||
| 2030 | — | 18,253 | 18,253 | ||||||||||||||
| 2031 | — | 17,819 | 17,819 | ||||||||||||||
| Thereafter | — | 148,843 | 148,843 | ||||||||||||||
| Total minimum lease payments | $ | 1,134 | $ | 262,984 | $ | 264,118 | |||||||||||
| Less: Imputed interest | 87,040 | ||||||||||||||||
| Total lease liabilities | 177,078 | ||||||||||||||||
| Less: Current lease liabilities | 14,019 | ||||||||||||||||
| Long-term lease liabilities | $ | 163,059 | |||||||||||||||
There were no material future minimum lease payments under finance leases at December 31, 2025.
Related Party Leases
The Company leases its manufacturing facility in Plainsboro, New Jersey, from a general partnership that is 50% owned by a principal stockholder of the Company. The term of the current lease agreement is through October 31, 2029 at an annual rate of approximately $0.3 million. The current lease agreement also provides (i) a 5-year renewal option for the Company to extend the lease from November 1, 2029 through October 31, 2034 at the fair market rental rate of the premises, and (ii) another 5-year renewal option to extend the lease from November 1, 2034 through October 31, 2039 at the fair market rental rate of the premises.
Lease Impairment Charge
The Company approved a plan to transition the commercial distribution of PriMatrix® and SurgiMend® from the Boston facility to the Company’s manufacturing facility in Braintree, Massachusetts and permanently cease use of the Boston facility. As a result, in the second quarter of 2024, the Company recorded a $4.6 million impairment charge in the Tissue Technologies reportable segment, as the carrying amounts of the operating lease right-of-use asset and fixed assets related to the Boston facility exceeded their fair values based on the Company’s estimates of future discounted cash flows through the end of the lease term and the end of their remaining useful lives, respectively. The $4.6 million impairment charge was comprised of a $1.7 million impairment of an operating lease right-of-use asset and a $2.9 million write-off of fixed assets, which was recorded as a component of in the consolidated statements of operations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 26, 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.