NETGEAR, INC. Leases Disclosure
Note 15. Leases
The Company leases office space, cars, distribution centers and equipment under non-cancellable operating lease arrangements with various expiration dates through December 2037. The leases have remaining lease terms of approximately 1 year to 12 years, some of which include options to extend for up to a further 5 years, and some of which include options to terminate prior to completion of the contractual lease term with or without penalties. The Company determines the duration of the lease arrangement giving thought to whether or not it is reasonably certain that the Company will exercise options to extend or terminate the lease arrangement ahead of its contractual term. The leases do not contain any material residual value guarantees.
The components of lease cost were as follows:
|
|
|
Year Ended December 31, |
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|
|
|
2025 |
|
|
2024 |
|
|
2023 |
(In Thousands) |
|
|
|
||||||
Operating lease cost |
|
$ |
12,393 |
|
$ |
12,424 |
|
$ |
12,586 |
Short-term lease cost |
|
|
158 |
|
|
315 |
|
|
305 |
Total lease cost (1) |
|
$ |
12,551 |
|
$ |
12,739 |
|
$ |
12,891 |
_______________________
Supplemental cash flow information related to leases was as follows:
|
|
|
Year Ended December 31, |
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|
|
|
2025 |
|
|
2024 |
|
|
2023 |
(In Thousands) |
|
|
|||||||
Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
|
Operating cash flows relating to operating leases |
|
$ |
12,633 |
|
$ |
13,733 |
|
$ |
12,697 |
|
|
|
|
|
|
|
|
|
|
Lease liabilities arising from obtaining right-of-use assets: |
|
|
|
|
|
|
|
|
|
Operating leases |
|
$ |
18,996 |
|
$ |
1,273 |
|
$ |
6,987 |
Supplemental balance sheet information related to leases was as follows:
|
|
As of December 31, |
||
|
|
2025 |
|
2024 |
Weighted Average Remaining Lease Term (in years) |
|
|
|
|
Operating leases |
|
7.7 |
|
4.1 |
|
|
|
|
|
Weighted Average Discount Rate |
|
|
|
|
Operating leases |
|
6.6% |
|
6.1% |
As of December 31, 2025, maturities of operating lease liabilities were as follows (in thousands):
|
|
|
Operating Lease |
2026 |
|
$ |
12,925 |
2027 |
|
|
11,898 |
2028 |
|
|
5,623 |
2029 |
|
|
4,793 |
2030 |
|
|
4,788 |
Thereafter |
|
|
27,011 |
Total lease payments |
|
|
67,038 |
Less imputed interest |
|
|
(16,089) |
Total |
|
$ |
50,949 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 18, 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.