MKS INC Leases Disclosure
The Company has various operating leases for real estate and non-real estate items. The non-real estate leases are mainly comprised of automobiles but also include office equipment and other lower-valued items.
Leases consist of the following:
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Years Ended December 31, |
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2025 |
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2024 |
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2023 |
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Operating lease cost (1) |
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$ |
41 |
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$ |
37 |
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$ |
31 |
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Finance lease cost |
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10 |
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9 |
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9 |
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Short-term lease |
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6 |
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8 |
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12 |
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Total lease cost |
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$ |
57 |
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$ |
54 |
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$ |
52 |
|
Supplemental cash flow information related to leases was as follows:
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Years Ended December 31, |
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2025 |
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2024 |
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2023 |
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Cash paid for amounts included in measurement of liabilities: |
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Operating cash flows used for operating leases(1) |
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$ |
37 |
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$ |
33 |
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$ |
34 |
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Operating cash flows used for finance leases |
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3 |
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2 |
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1 |
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Financing cash flows used for finance leases |
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3 |
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15 |
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4 |
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ROU assets obtained in exchange for new lease liabilities: |
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Operating leases |
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14 |
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26 |
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25 |
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Finance leases |
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46 |
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12 |
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1 |
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The weighted average remaining terms for all leases were as follows:
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Years Ended December 31, |
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2025 |
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2024 |
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Weighted-average remaining lease term years-operating leases |
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10.5 |
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11.5 |
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Weighted-average remaining lease term years-finance leases |
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22.5 |
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13.1 |
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Weighted-average discount rate-operating leases |
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3.8 |
% |
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3.7 |
% |
Weighted-average discount rate-finance leases |
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5.5 |
% |
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5.2 |
% |
Future lease payments under non-cancelable leases as of December 31, 2025 are detailed as follows:
Year Ending December 31, |
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Operating |
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Finance |
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2026 |
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$ |
35 |
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$ |
6 |
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2027 |
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31 |
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6 |
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2028 |
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23 |
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6 |
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2029 |
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20 |
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6 |
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2030 |
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16 |
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6 |
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Thereafter |
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118 |
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|
102 |
|
Total lease payments |
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243 |
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132 |
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Less: imputed interest |
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41 |
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|
57 |
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Total |
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$ |
202 |
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$ |
75 |
|
Amounts presented above do not include payments relating to immaterial leases excluded from the consolidated balance sheets as well as leases with terms of less than twelve months.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2019 | Feb 28, 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.