ICF International, Inc. Leases Disclosure
NOTE 7 - LEASES
The Company has operating and finance leases for facilities and equipment which have remaining terms ranging from 1 to 13 years. The leases may include options to extend the lease periods for up to 5 years at rates approximating market rates and/or options to terminate the leases within 1 year. The leases may also include a residual value guarantee or a responsibility to return the property to its original state of use. A limited number of leases contain provisions that provide for rental increases based on consumer price indices. The change in lease cost resulting from changes in these indices was included within variable lease cost.
The Company’s lease cost is recognized on a straight-line basis over the lease term and is primarily included within indirect and selling expenses on the consolidated statements of comprehensive income. Lease cost consisted of the following:
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating lease cost |
|
$ |
18,654 |
|
|
$ |
22,085 |
|
|
$ |
25,037 |
|
Finance lease cost - amortization of right-of-use assets |
|
|
2,040 |
|
|
|
2,040 |
|
|
|
2,040 |
|
Finance lease cost - interest |
|
|
429 |
|
|
|
519 |
|
|
|
602 |
|
Short-term lease cost |
|
|
961 |
|
|
|
724 |
|
|
|
669 |
|
Variable lease cost |
|
|
488 |
|
|
|
289 |
|
|
|
222 |
|
Sublease income |
|
|
(621 |
) |
|
|
— |
|
|
|
(28 |
) |
Total lease cost |
|
$ |
21,951 |
|
|
$ |
25,657 |
|
|
$ |
28,542 |
|
Future minimum lease payments under non-cancellable operating and finance leases as of December 31, 2025 were as follows:
|
|
Operating |
|
|
Finance |
|
||
2026 |
|
$ |
23,857 |
|
|
$ |
3,041 |
|
2027 |
|
|
19,254 |
|
|
|
3,041 |
|
2028 |
|
|
16,162 |
|
|
|
2,985 |
|
2029 |
|
|
13,873 |
|
|
|
2,967 |
|
2030 |
|
|
13,293 |
|
|
|
— |
|
Thereafter |
|
|
105,094 |
|
|
|
— |
|
Total future minimum lease payments |
|
|
191,533 |
|
|
|
12,034 |
|
Less: Interest |
|
|
(32,811 |
) |
|
|
(772 |
) |
Total lease liabilities |
|
$ |
158,722 |
|
|
$ |
11,262 |
|
|
|
|
|
|
|
|
||
Lease liabilities - current |
|
$ |
18,787 |
|
|
$ |
2,704 |
|
Lease liabilities - non-current |
|
|
139,935 |
|
|
|
8,558 |
|
Total lease liabilities |
|
$ |
158,722 |
|
|
$ |
11,262 |
|
Other information related to operating and finance leases is as follows:
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
||
Operating cash flows from operating leases |
|
$ |
27,407 |
|
|
$ |
27,267 |
|
Financing cash flows from finance leases |
|
$ |
2,612 |
|
|
$ |
2,522 |
|
Operating cash flows from finance leases |
|
$ |
429 |
|
|
$ |
519 |
|
Right-of-use assets obtained in exchange for new operating lease liabilities |
|
$ |
3,544 |
|
|
$ |
3,730 |
|
Weighted-average remaining lease term |
|
|
|
|
|
|
||
Operating leases |
|
|
11.0 |
|
|
|
11.4 |
|
Finance leases |
|
|
4.0 |
|
|
|
5.0 |
|
Weighted-average discount rate |
|
|
|
|
|
|
||
Operating leases |
|
|
3.5 |
% |
|
|
3.5 |
% |
Finance leases |
|
|
3.4 |
% |
|
|
3.4 |
% |
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.