MARSH & MCLENNAN COMPANIES, INC.MRSH

MARSH & MCLENNAN COMPANIES, INC. Leases Disclosure

10-KFiled Feb 9, 20262 min read
Leases
The Company leases office facilities under non-cancelable operating leases with terms generally ranging between 10 and 25 years. The Company utilizes these leased office facilities for use by its employees in countries in which the Company conducts its business. The Company’s leases have no restrictions on the payment of dividends, the acquisition of debt or additional lease obligations, or entering into additional lease obligations. The leases also do not contain significant purchase options.
Operating leases are recognized on the consolidated balance sheets as ROU assets and operating lease liabilities based on the present value of the remaining future minimum payments over the lease term at the commencement date of the lease. On November 15, 2024, the Company recorded approximately $76 million of ROU assets and lease liabilities from the McGriff acquisition.
In 2025 and 2024, the Company determined that a total of $11 million and $15 million, respectively, of the ROU assets were impaired and recorded a charge to the consolidated statements of income with an offsetting reduction to the ROU assets.
The following table provides additional information about the Company’s property leases:
For the Years Ended December 31,
(In millions, except weighted average data)
20252024
Lease Cost:
Operating lease cost (a)$351$331
Short-term lease cost56
Variable lease cost134116
Sub-lease income(22)(15)
Net lease cost$468$438
Other information:
Operating cash outflows from operating leases$402$376
Right of use assets obtained in exchange for new operating lease liabilities$187$279
Weighted average remaining lease term – real estate7.23 years7.57 years
Weighted average discount rate – real estate leases3.73 %3.73 %
(a)Excludes ROU asset impairment charges.
Future minimum lease payments for the Company’s operating leases at December 31, 2025 are as follows:
(In millions)Real Estate Leases
2026$393 
2027359 
2028281 
2029233 
2030199 
Subsequent years653 
Total future lease payments2,118 
Less: imputed interest(256)
Total$1,862 
Current lease liabilities$333 
Long-term lease liabilities1,529 
Total lease liabilities$1,862 
Note: The above table excludes obligations for leases with original terms of 12 months or less which have not been recognized as a ROU asset or liability in the consolidated balance sheets.
At December 31, 2025, the Company had additional operating leases that had not yet commenced of $36 million. These operating leases will commence over the next 12 months.

Historical Timeline

Fiscal YearFiled
2025Feb 9, 2026Showing above
2024Feb 10, 2025
2023Feb 12, 2024
2022Feb 13, 2023
2021Feb 16, 2022
2020Feb 17, 2021
2019Feb 20, 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.

Other Available Disclosures

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