MOOG INC.MOG-A
MOOG INC. Leases Disclosure
Leases
We lease certain manufacturing facilities, office space and machinery and equipment globally. At inception we evaluate whether a contractual arrangement contains a lease. Specifically, we consider whether we control the underlying asset and have the right to obtain substantially all the economic benefits or outputs from the asset. If the contractual arrangement contains a lease, we then determine the classification of the lease, operating or finance, using the classification criteria described in ASC 842. We then determine the term of the lease based on terms and conditions of the contractual arrangement, including whether the options to extend or terminate the lease are reasonably certain to be exercised. We have elected to not separate lease components from non-lease components, such as common area maintenance charges and instead, account for the lease and non-lease components as a single component.
Our lease right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and our lease liabilities represent our obligation to make lease payments. The ROU assets and lease liabilities for both operating and finance leases are recognized as of the commencement date at the net present value of the fixed minimum lease payments over the term of the lease including expected buyouts, using the discount rate described below. Variable lease payments are recorded in the period in which the obligation for the payment is incurred. Variable lease payments based on an index or rate are initially measured using the index or rate as of the commencement date of the lease and included in the fixed minimum lease payments. For short-term leases that have a term of 12 months or less as of the commencement date, we do not recognize a ROU asset or lease liability on our balance sheet; we recognize expense as the lease payments are made over the lease term.
Operating lease cost is included in Cost of sales and Selling, general and administrative on the Consolidated Statements of Earnings. Finance lease cost is included in Cost of sales, Selling, general and administrative and Interest on the Consolidated Statements of Earnings.
The discount rate used to calculate the present value of our leases is the rate implicit in the lease. If the information necessary to determine the rate implicit in the lease is not available, we use our incremental borrowing rate for collateralized debt, which is determined using our credit rating and other information available as of the lease commencement date.
The components of lease expense were as follows:
| 2025 | 2024 | 2023 | |||||||||||||||
| Operating lease cost | $ | 32,428 | $ | 31,065 | $ | 29,982 | |||||||||||
| Finance lease cost: | |||||||||||||||||
| Amortization of right-of-use assets | $ | 10,909 | $ | 7,443 | $ | 4,380 | |||||||||||
| Interest on lease liabilities | 7,623 | 5,963 | 3,247 | ||||||||||||||
| Total finance lease cost | $ | 18,532 | $ | 13,406 | $ | 7,627 | |||||||||||
Supplemental cash flow information related to leases was as follows:
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flow for operating leases | $ | 33,495 | $ | 31,346 | $ | 30,281 | |||||||||||
| Operating cash flow for finance leases | 7,623 | 5,963 | 3,247 | ||||||||||||||
| Financing cash flow for finance leases | 10,159 | 6,037 | 4,313 | ||||||||||||||
| Assets obtained in exchange for lease obligations: | |||||||||||||||||
| Operating leases | 13,462 | 10,162 | 6,014 | ||||||||||||||
| Finance leases | 33,552 | 29,221 | 58,020 | ||||||||||||||
Supplemental balance sheet information related to leases was as follows:
| September 27, 2025 | September 28, 2024 | ||||||||||
| Operating Leases: | |||||||||||
| Operating lease right-of-use assets | $ | 52,799 | $ | 52,591 | |||||||
| $ | 11,697 | $ | 11,124 | ||||||||
| 52,549 | 53,228 | ||||||||||
| $ | 64,246 | $ | 64,352 | ||||||||
| Finance Leases: | |||||||||||
| Property, plant, and equipment, at cost | $ | 157,533 | $ | 124,770 | |||||||
| Accumulated depreciation | (27,186) | (17,101) | |||||||||
| $ | 130,347 | $ | 107,669 | ||||||||
| $ | 14,920 | $ | 8,713 | ||||||||
| 119,155 | 101,683 | ||||||||||
| $ | 134,075 | $ | 110,396 | ||||||||
| Weighted average remaining lease term in years: | |||||||||||
| Operating leases | 6.2 | 6.2 | |||||||||
| Finance leases | 17.6 | 20.1 | |||||||||
| Weighted average discount rates: | |||||||||||
| Operating leases | 5.3 | % | 5.2 | % | |||||||
| Finance leases | 6.4 | % | 6.4 | % | |||||||
Maturities of lease liabilities were as follows:
| September 27, 2025 | ||||||||||||||
| Operating Leases | Finance Leases | |||||||||||||
| 2026 | $ | 14,566 | $ | 22,296 | ||||||||||
| 2027 | 13,698 | 19,885 | ||||||||||||
| 2028 | 11,571 | 20,801 | ||||||||||||
| 2029 | 10,098 | 21,824 | ||||||||||||
| 2030 | 7,467 | 18,678 | ||||||||||||
| Thereafter | 18,132 | 143,900 | ||||||||||||
| Total lease payments | 75,532 | 247,384 | ||||||||||||
| Less: imputed interest | (11,286) | (113,309) | ||||||||||||
| Total | $ | 64,246 | $ | 134,075 | ||||||||||
The operating lease ROU and finance lease disclosures above reflect a write down of $2,849 in 2024, as a result of restructuring actions taken to simplify our business operations through facility closures.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 26, 2025 | Showing above |
| 2024 | Nov 27, 2024 | |
| 2023 | Nov 14, 2023 | |
| 2022 | Nov 14, 2022 | |
| 2021 | Nov 15, 2021 | |
| 2020 | Nov 17, 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.