IDEXX LABORATORIES INC /DEIDXX

IDEXX LABORATORIES INC /DE Leases Disclosure

10-KFiled Feb 20, 20263 min read
LEASE COMMITMENTS
We determine if an arrangement is a lease at its inception. The majority of our facilities are occupied under operating lease arrangements with various expiration dates through 2067, some of which include options to extend the life of the lease, and some of which include options to terminate the lease within one year. In certain instances, we are responsible for the real estate taxes and operating expenses related to these facilities. Additionally, we enter into operating leases for certain vehicles and equipment in the normal course of business.

We determine the expected term of executed agreements using the non-cancelable lease term plus optional renewal terms that we are reasonably certain to exercise. The derived expected term is then used in the determination of a financing or operating lease and in the calculation of straight-line rent expense for our operating leases. Rent escalations are considered in the calculation of minimum lease payments in our finance lease tests and in determining straight-line rent expense for operating leases. Minimum lease payments include the fixed lease component of the agreement, as well as fixed rate increases that are initially measured at the lease commencement date. Variable lease payments based on an index, payments associated with non-lease components, and short-term rentals (leases with terms less than twelve months) are expensed as incurred. Consideration is allocated to the lease and non-lease components based on the estimated standalone prices.

Operating leases are included in operating lease right-of-use assets, accrued liabilities, and long-term operating lease liabilities in our consolidated balance sheets. Financing leases are not material to the financial statements.

Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease liabilities and right-of-use assets are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an explicit rate, we generally use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Rent expense for lease payments is recognized on a straight-line basis over the lease term. The operating lease right-of-use assets also include any rent prepayments, lease incentives received, and straight-line rent expense impacts, which represent the differences between our operating lease liabilities and right-of-use assets.

Maturities of operating lease liabilities are as follows:
(in thousands)December 31, 2025
 
2026$32,104 
202729,848 
202823,582 
202918,616 
203011,739 
Thereafter31,569 
Total lease payments147,458 
Less imputed interest(19,233)
Total lease liabilities (current and long-term)
$128,225 

Total minimum future lease payments for leases that have not commenced as of December 31, 2025, were not material.

December 31, 2025December 31, 2024
Weighted average remaining lease term - operating leases7.8 years8.2 years
Weighted average discount rate - operating leases4.3 %4.4 %

Expenses incurred related to operating leases, excluding variable and short-term leases, were approximately $36.3 million and $32.4 million during the years ended December 31, 2025, and 2024, respectively. Total expenses incurred related to operating leases, including variable rent and short-term leases, were approximately $38.3 million and $34.0 million for the years ended December 31, 2025, and 2024, respectively.
Supplemental cash flow information for leases were as follows:
For the Years Ended
December 31,
(in thousands)20252024
 
Cash paid for amounts included in the measurement of operating lease liabilities$33,376 $27,926 
Right-of-use assets obtained in exchange for operating lease obligations, net of early lease terminations$31,385 $26,010 

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 21, 2025
2023Feb 22, 2024
2022Feb 16, 2023
2021Feb 16, 2022
2020Feb 12, 2021
2019Feb 14, 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.

Other Available Disclosures

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