Lumentum Holdings Inc.LITE

Lumentum Holdings Inc. Leases Disclosure

10-KFiled Aug 19, 20252 min read
Note 8. Leases
We lease certain real and personal property from unrelated third parties under non-cancellable operating leases that expire at various dates through fiscal year 2033. These operating leases are primarily for administrative offices, research and development and manufacturing facilities, as well as sales offices in various countries around the world. Certain leases require us to pay property taxes, insurance and routine maintenance, and include escalation clauses. Many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement.
As of June 28, 2025, we sublease a portion of our offices in the United States, Canada, the United Kingdom and China. These subleases will expire at various dates through fiscal year 2029. We anticipate receiving approximately $0.9 million in sublease income over the next fiscal year.
The components of lease costs, lease term, and discount rate are as follows (in millions, except for weighted average data):
June 28, 2025June 29, 2024July 1, 2023
Operating lease cost$13.3 $16.8 $14.4 
Short-term and variable lease cost3.5 4.6 2.7 
Sublease income(0.8)(2.0)(2.6)
Total lease cost$16.0 $19.4 $14.5 
Weighted average remaining lease term (in years):
Operating leases3.35.25.8
Weighted average discount rate (in percentages):
Operating leases 3.8 %3.5 %3.1 %
As of June 28, 2025, maturities of our operating lease liabilities, which do not include short-term leases and variable lease payments, were as follows (in millions):
Fiscal Years
Operating Leases (1)
2026$12.7 
202711.7 
20287.5 
20294.4 
20301.0 
Thereafter0.3 
Total minimum lease payments37.6 
Less: amount representing interest(2.6)
Present value of total lease liabilities$35.0 
(1) Non-cancellable sublease proceeds for fiscal year 2025 of $0.9 million are not included in the table above.

Historical Timeline

Fiscal YearFiled
2025Aug 19, 2025Showing above
2024Aug 21, 2024
2023Aug 23, 2023
2022Aug 24, 2022
2021Aug 31, 2021
2020Aug 25, 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.

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