MANHATTAN ASSOCIATES INC Leases Disclosure
7. Leases
We lease our facilities and some of our equipment under noncancelable operating lease arrangements that expire at various dates through 2036. The total operating lease liabilities for these leases at December 31, 2025 was approximately $61.1 million. For a few of our facility leases, we have certain options to extend the lease term for up to 10 years, at our sole discretion. We have no finance leases.
We present below the operating lease right-of-use assets and lease liabilities as of December 31, 2025 (in thousands):
|
|
December 31, 2025 |
ASSETS |
|
|
Operating lease right-of-use assets |
|
$50,443 |
|
|
|
LIABILITIES |
|
|
Operating lease liabilities, current (included in ) |
|
$4,883 |
Operating lease liabilities, long-term |
|
56,180 |
Total operating lease liabilities |
|
$61,063 |
Aggregate future minimum lease payments under noncancelable operating leases as of December 31, 2025 are as follows (in thousands):
Year Ending December 31, |
|
|
|
|
2026 |
|
$ |
11,590 |
|
2027 |
|
|
11,296 |
|
2028 |
|
|
10,843 |
|
2029 |
|
|
7,498 |
|
2030 |
|
|
6,680 |
|
Thereafter |
|
|
37,103 |
|
Total minimum payments required |
|
|
85,010 |
|
Less short-term leases |
|
|
(257 |
) |
Less imputed interest |
|
|
(23,690 |
) |
Total operating lease liabilities |
|
$ |
61,063 |
|
We are applying the practical expedient to not separate lease and non-lease components, which allows us to account for lease and non-lease components as a single lease component. The total lease cost in 2025 was $10.1 million, consisting of $9.8 million of operating lease costs and $0.3 million of short-term lease costs. The total lease cost in 2024 was $9.3 million, consisting of $9.0 million of operating lease costs, and $0.3 million of short-term lease costs. Total lease costs in 2023 were $8.1 million, consisting of $7.8 million of operating lease costs, and $0.3 million of short-term lease costs. Our variable lease cost during 2025, 2024 and 2023 were immaterial.
Weighted average remaining lease term |
|
8.9 years |
|
|
Weighted average discount rate |
|
|
5.46 |
% |
Supplemental cash flow information - operating cash flows (in thousands): |
|
|
|
|
Cash paid for amounts included in the measurement of lease liabilities |
|
|
|
|
Operating cash flows for operating leases |
|
$ |
9,709 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 4, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 6, 2024 | |
| 2022 | Feb 6, 2023 | |
| 2021 | Feb 7, 2022 | |
| 2020 | Feb 5, 2021 | |
| 2019 | Feb 10, 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.