JABIL INCJBL

JABIL INC Leases Disclosure

10-KFiled Oct 17, 20253 min read
Leases
The following table sets forth the amount of lease assets and lease liabilities included on the Company's Consolidated Balance Sheets, as of the periods indicated (in millions):
Financial Statement Line ItemAugust 31, 2025August 31, 2024
Assets
Operating lease assetsOperating lease right-of-use assets$462 $360 
Finance lease assets(1)
Property, plant and equipment, net391 378 
Total lease assets$853 $738 
Liabilities
Current
Operating lease liabilitiesCurrent operating lease liabilities$93 $93 
Finance lease liabilitiesAccrued expenses199 119 
Non-current
Operating lease liabilitiesNon-current operating lease liabilities388 284 
Finance lease liabilitiesOther liabilities166 235 
Total lease liabilities$846 $731 
(1)    Net of accumulated amortization of $136 million and $162 million as of August 31, 2025 and 2024, respectively.
The following table is a summary of expenses related to leases included on the Company's Consolidated Statements of Operations, for the periods indicated (in millions):
Fiscal Year Ended August 31,
 20252024
Operating lease cost$119 $118 
Finance lease cost
Amortization of leased assets42 50 
Interest on lease liabilities11 10 
Net lease cost(1)(2)
$172 $178 
(1)Lease costs are primarily recognized in cost of revenue.
(2)Excludes immaterial amounts of short term leases, variable lease costs and sublease income.
The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company's leases, as of the periods indicated:
August 31, 2025August 31, 2024
Weighted-average remaining lease termWeighted-average discount rateWeighted-average remaining lease termWeighted-average discount rate
Operating leases7.7 years4.39 %5.7 years3.80 %
Finance leases6.5 years3.57 %5.2 years4.23 %
The following table sets forth other supplemental information related to the Company's lease portfolio (in millions):
Fiscal Year Ended August 31,
 20252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases(1)
$104 $116 
Operating cash flows for finance leases(1)
$11 $10 
Financing activities for finance leases(2)
$142 $111 
Non-cash right-of-use assets obtained in exchange for lease liabilities:
Operating leases$208 $109 
Finance leases$136 $163 
(1)Included in accounts payable, accrued expenses and other liabilities in Operating Activities of the Company's Consolidated Statements of Cash Flows.
(2)Included in payments toward debt agreements in Financing Activities of the Company's Consolidated Statements of Cash Flows.
The following table sets forth a maturity analysis of operating and finance lease liabilities as of August 31, 2025 (in millions):
Fiscal Year Ended August 31,
Operating Leases(1)
Finance Leases(1)(2)(3)
Total
2026
$112 $208 $320 
2027
91 43 134 
2028
74 22 96 
2029
67 16 83 
2030
51 14 65 
Thereafter199 119 318 
Total lease payments$594 $422 $1,016 
Less: Imputed interest(113)(57)(170)
Present value of lease liabilities$481 $365 $846 
(1)Excludes $176 million of payments related to leases signed but not yet commenced. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable.
(2)Includes a $101 million lease liability related to a lease with a variable interest entity (“VIE”), for which the Company is not the primary beneficiary. The Company’s maximum exposure to loss related to the VIE is $144 million.
(3)Excludes $280 million of residual value guarantees that could potentially come due in future periods. The Company does not believe it is probable that any amounts will be owed under these guarantees. Therefore, no amounts related to the residual value guarantees are included in the lease payments used to measure the right-of-use assets and lease liabilities.

Historical Timeline

Fiscal YearFiled
2025Oct 17, 2025Showing above
2024Oct 28, 2024
2023Oct 20, 2023
2022Oct 25, 2022
2021Oct 22, 2021
2020Oct 22, 2020
2017Oct 19, 2017
2016Oct 20, 2016
2015Oct 16, 2015

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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