MAGNACHIP SEMICONDUCTOR Corp Leases Disclosure
The Company has operating and finance leases for buildings and other assets such as vehicles and office equipment. The Company’s leases have remaining lease terms ranging from 1 year to 4 years.
The tables below present financial information related to the Company’s leases.
Supplemental balance sheets information related to leases as of December 31, 2025 and 2024 are as follows (in thousands):
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December 31, |
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Leases |
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Classification |
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2025 |
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2024 |
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Assets |
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Operating lease |
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|
$ |
2,070 |
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$ |
3,107 |
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Finance lease |
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Property, plant and equipment, net |
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|
217 |
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|
390 |
|
Total lease assets |
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$ |
2,287 |
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|
$ |
3,497 |
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Liabilities |
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Current |
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Operating lease |
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$ |
1,427 |
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$ |
1,393 |
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Finance lease |
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Other current liabilities |
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|
130 |
|
|
|
153 |
|
Non-current |
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Operating lease |
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|
|
690 |
|
|
|
1,823 |
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Finance lease |
|
Other non-current liabilities |
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|
128 |
|
|
|
294 |
|
Total lease liabilities |
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|
|
$ |
2,375 |
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|
$ |
3,663 |
|
The following table presents the weighted average remaining lease term and discount rate:
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December 31, |
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2025 |
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2024 |
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Weighted average remaining lease term |
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Operating leases |
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1.5 years |
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2.5 years |
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Finance leases |
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2.1 years |
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2.9 years |
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Weighted average discount rate |
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Operating leases |
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|
6.5 |
% |
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|
6.8 |
% |
Finance leases |
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|
7.0 |
% |
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|
7.1 |
% |
The components of lease cost from continuing operations included in the Company’s consolidated statements of operations, are as follows (in thousands):
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Year Ended December 31, |
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2025 |
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2024 |
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Operating lease cost |
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$ |
1,781 |
|
|
$ |
1,868 |
|
Finance lease cost |
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|
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Amortization of right-of-use assets |
|
|
144 |
|
|
|
138 |
|
Interest on lease liabilities |
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|
26 |
|
|
|
35 |
|
Total lease cost |
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$ |
1,951 |
|
|
$ |
2,041 |
|
The above table does not include an immaterial cost of short-term leases for the years ended December 31, 2025 and 2024.
Other lease information associated with continuing operations is as follows (in thousands):
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Year Ended December 31, |
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2025 |
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2024 |
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Cash paid for amounts included in the measurement of |
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Operating cash flows from operating leases |
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$ |
1,844 |
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$ |
1,913 |
|
Operating cash flows from finance leases |
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|
26 |
|
|
|
35 |
|
Financing cash flows from finance leases |
|
|
154 |
|
|
|
140 |
|
Non-cash transaction amounts of lease liabilities arising from obtaining right-of-use assets were $1,225 thousand and $959 thousand for the years ended December 31, 2025 and 2024, respectively.
The aggregate future lease payments for operating and finance leases as of December 31, 2025 are as follows (in thousands):
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Operating |
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2026 |
|
$ |
1,520 |
|
|
$ |
144 |
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2027 |
|
|
701 |
|
|
|
110 |
|
2028 |
|
|
9 |
|
|
|
22 |
|
2029 |
|
|
— |
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|
|
2 |
|
Total future lease payments |
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|
2,230 |
|
|
|
278 |
|
Less: Imputed interest |
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|
(113 |
) |
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|
(20 |
) |
Present value of future payments |
|
$ |
2,117 |
|
|
$ |
258 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Mar 9, 2021 | |
| 2019 | Feb 21, 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.