LINCOLN ELECTRIC HOLDINGS INC Leases Disclosure
NOTE 17 – LEASES
The table below summarizes the right-of-use assets and lease liabilities in the Company’s Consolidated Balance sheets:
Operating Leases | | Balance Sheet Classification | | December 31, 2025 | | December 31, 2024 | ||
Right-of-use assets |
| $ | 52,989 | $ | 54,276 | |||
Current liabilities |
| $ | 13,460 | $ | 13,110 | |||
Noncurrent liabilities |
|
| 40,061 |
| 42,124 | |||
Total lease liabilities |
| | $ | 53,521 | $ | 55,234 | ||
The total future minimum lease payments for noncancelable operating leases were as follows:
| December 31, 2025 | ||
2026 | $ | 15,232 | |
2027 |
| 12,229 | |
2028 |
| 10,273 | |
2029 |
| 7,456 | |
2030 |
| 3,802 | |
After 2030 |
| 10,781 | |
Total lease payments | $ | 59,773 | |
Less: Imputed interest |
| 6,252 | |
Operating lease liabilities | $ | 53,521 | |
Other information related to leases was as follows:
| 2025 | 2024 | 2023 | |||||||
Lease expense (1) | $ | 27,674 | $ | 24,778 | $ | 24,408 | ||||
Cash paid for amounts included in the measurement of lease liabilities (2) | 15,031 | 15,874 | 13,450 | |||||||
Right-of-use assets obtained in exchange for operating lease liabilities | 12,683 | 17,591 | 9,249 | |||||||
Weighted average discount rate | 3.7 | % | 3.7 | % | 3.5 | % | ||||
Weighted average remaining lease term | 6.1 years | 6.4 years | 7.0 years | |||||||
| (1) | Amounts are included in Cost of goods sold and Selling, general and administrative expenses in the Company’s Consolidated Statement of Income. |
| (2) | Amounts are included in Net Cash Provided by Operating Activities in the Company’s Consolidated Statement of Cash Flows. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 25, 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.