LivaNova PLCLIVN

LivaNova PLC Leases Disclosure

10-KFiled Feb 25, 20262 min read
Note 10. Leases
LivaNova has operating leases primarily for (i) office space; (ii) manufacturing, warehouse, and R&D facilities; and (iii) vehicles. LivaNova’s leases include options to extend the leases, and some of which include options to terminate the leases at the Company’s sole discretion. The following table presents the components of operating lease assets and liabilities (in thousands):
December 31,
20252024
Assets:
Operating lease right-of-use assets$55,519 $46,837 
Liabilities:
Accrued liabilities and other$8,788 $9,040 
Long-term operating lease liabilities48,327 40,105 
Total lease liabilities$57,115 $49,145 
The following table presents the components of operating lease cost (in thousands):
202520242023
Operating lease cost$12,893 $11,333 $10,286 
Variable lease cost433 964 871 
Short-term lease cost708 749 644 
Total lease cost
$14,034 $13,046 $11,801 
The following table presents the contractual maturities of LivaNova’s lease liabilities as of December 31, 2025 (in thousands):
Operating Leases
2026$11,853 
202710,496 
20289,416 
20297,960 
20307,170 
Thereafter26,563 
Total lease payments73,458 
Less: Amount representing interest16,343 
Present value of lease liabilities$57,115 
The following table presents the weighted-average remaining lease terms and discount rates:
December 31,
20252024
Weighted average remaining lease term:
Operating leases
8.1 years8.7 years
Weighted average discount rate:
Operating leases
6.3%5.9%
The following table presents the supplemental lease information (in thousands):
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$13,259 $12,412 $11,652 
Lease assets obtained in exchange for lease liabilities:
Operating leases
12,161 7,373 24,800 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 25, 2025
2023Feb 29, 2024
2022Feb 27, 2023
2021Mar 1, 2022
2020Mar 1, 2021
2019Mar 2, 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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