Nutanix, Inc. Leases Disclosure
NOTE 6. LEASES
We have operating leases for offices, research and development facilities and data centers and finance leases for certain data center equipment. Our leases have remaining lease terms of one year to approximately five years, some of which include options to renew or terminate. We do not include renewal options in the lease terms for calculating our lease liability, as we are not reasonably certain that we will exercise these renewal options at the time of the lease commencement. Our lease agreements do not contain any residual value guarantees or restrictive covenants.
Total operating lease cost was $42.4 million, $38.6 million and $37.7 million for the fiscal years ended July 31, 2023, 2024 and 2025, respectively, excluding short-term lease costs, variable lease costs and sublease income, each of which were not material. Variable lease costs primarily include common area maintenance charges. Total finance lease cost was $3.9 million, $4.8 million, and $4.5 million for the fiscal years ended July 31, 2023, 2024 and 2025, respectively.
During fiscal 2023, we signed agreements to early exit certain office spaces in the United States and the Netherlands. The reductions in the lease terms resulted in decreases to the carrying amounts of the operating lease liabilities and the operating lease right-of-use assets on our consolidated balance sheet as of July 31, 2023. In addition, we recorded $1.7 million of expense in our consolidated statement of operations for the fiscal year ended July 31, 2023.
Supplemental balance sheet information related to our leases is as follows:
|
|
As of |
|
|||||
|
|
July 31, |
|
|
July 31, |
|
||
|
|
(in thousands) |
|
|||||
Operating leases: |
|
|
|
|
|
|
||
Operating lease right-of-use assets, gross |
|
$ |
180,843 |
|
|
$ |
217,060 |
|
Accumulated amortization |
|
|
(71,710 |
) |
|
|
(82,534 |
) |
Operating lease right-of-use assets, net |
|
$ |
109,133 |
|
|
$ |
134,526 |
|
Operating lease liabilities—current |
|
$ |
24,163 |
|
|
$ |
23,234 |
|
Operating lease liabilities—non-current |
|
|
90,359 |
|
|
|
115,754 |
|
Total operating lease liabilities |
|
$ |
114,522 |
|
|
$ |
138,988 |
|
Weighted average remaining lease term (in years): |
|
|
4.8 |
|
|
|
4.5 |
|
Weighted average discount rate: |
|
|
6.4 |
% |
|
|
6.3 |
% |
|
|
As of |
|
|||||
|
|
July 31, |
|
|
July 31, |
|
||
|
|
(in thousands) |
|
|||||
Finance leases: |
|
|
|
|
|
|
||
Finance lease right-of-use assets, gross (1) |
|
$ |
19,345 |
|
|
$ |
18,288 |
|
Accumulated amortization (1) |
|
|
(9,412 |
) |
|
|
(12,805 |
) |
, net (1) |
|
$ |
9,933 |
|
|
$ |
5,483 |
|
(2) |
|
$ |
3,954 |
|
|
$ |
3,301 |
|
(3) |
|
|
6,666 |
|
|
|
2,734 |
|
|
$ |
10,620 |
|
|
$ |
6,035 |
|
|
Weighted average remaining lease term (in years): |
|
|
2.9 |
|
|
|
2.0 |
|
Weighted average discount rate: |
|
|
7.0 |
% |
|
|
7.1 |
% |
Supplemental cash flow and other information related to our leases is as follows:
|
|
Fiscal Year Ended July 31, |
|
|||||||||
|
|
2023 |
|
|
2024 |
|
|
2025 |
|
|||
|
|
(in thousands) |
|
|||||||||
Cash paid for amounts included in the measurement of |
|
|
|
|
|
|
|
|
|
|||
Operating cash flows from operating leases |
|
$ |
46,886 |
|
|
$ |
39,973 |
|
|
$ |
37,419 |
|
Operating cash flows from finance leases |
|
$ |
— |
|
|
$ |
885 |
|
|
$ |
614 |
|
Financing cash flows from finance leases |
|
$ |
4,757 |
|
|
$ |
3,601 |
|
|
$ |
3,922 |
|
Lease liabilities arising from obtaining right-of-use assets: |
|
|
|
|
|
|
|
|
|
|||
Operating leases |
|
$ |
10,358 |
|
|
$ |
46,153 |
|
|
$ |
54,435 |
|
Finance leases |
|
$ |
7,827 |
|
|
$ |
1,066 |
|
|
$ |
— |
|
The undiscounted cash flows for our lease liabilities as of July 31, 2025 were as follows:
Fiscal Year Ending July 31: |
|
Operating |
|
|
Finance |
|
|
Total |
|
|||
|
|
(in thousands) |
|
|||||||||
2026 |
|
$ |
31,573 |
|
|
$ |
3,618 |
|
|
$ |
35,191 |
|
2027 |
|
|
37,052 |
|
|
|
1,908 |
|
|
|
38,960 |
|
2028 |
|
|
36,521 |
|
|
|
961 |
|
|
|
37,482 |
|
2029 |
|
|
33,232 |
|
|
|
42 |
|
|
|
33,274 |
|
2030 |
|
|
22,574 |
|
|
|
— |
|
|
|
22,574 |
|
Thereafter |
|
|
234 |
|
|
|
— |
|
|
|
234 |
|
Total lease payments |
|
|
161,186 |
|
|
|
6,529 |
|
|
|
167,715 |
|
Less: imputed interest |
|
|
(22,198 |
) |
|
|
(494 |
) |
|
|
(22,692 |
) |
Total lease obligation |
|
|
138,988 |
|
|
|
6,035 |
|
|
|
145,023 |
|
Less: current lease obligations |
|
|
(23,234 |
) |
|
|
(3,301 |
) |
|
|
(26,535 |
) |
Long-term lease obligations |
|
$ |
115,754 |
|
|
$ |
2,734 |
|
|
$ |
118,488 |
|
As of July 31, 2025, we had additional operating lease commitments of approximately $7.5 million on an undiscounted basis for certain office leases that have not yet commenced. These operating leases will commence during fiscal 2025, with lease terms of approximately five years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 24, 2025 | Showing above |
| 2024 | Sep 19, 2024 | |
| 2023 | Sep 21, 2023 | |
| 2022 | Sep 21, 2022 | |
| 2021 | Sep 21, 2021 | |
| 2020 | Sep 23, 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.