Playtika Holding Corp.PLTK

Playtika Holding Corp. Leases Disclosure

10-KFiled Feb 26, 20262 min read
LEASES
The Company's leases include office real estate and data center leases for its facilities worldwide, which are all classified as operating leases, and which expire on various dates, the latest of which is December 2035. Certain lease agreements include rental payments that are adjusted periodically for the consumer price index ("CPI"). The Company’s ROU assets and lease liabilities were calculated using the initial CPI and will not be subsequently adjusted. Any increases or decreases in lease payments resulting from subsequent changes in the CPI are expensed as incurred. Certain leases include renewal options that management believes are reasonably certain to be exercised.

The following is a summary of weighted average remaining lease terms and discount rates for all of the Company's operating leases:
December 31, 2025December 31, 2024
Weighted average remaining lease term (years)6.86.3
Weighted average discount rates4.7 %4.5 %

Total operating lease expense was $27.8 million, $23.9 million and $23.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $28.1 million, $24.6 million and $18.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.

The Company recognized $1.0 million, $0.6 million and $0.1 million of income in December 31, 2025, 2024 and 2023 respectively, related to the subleases for office space with a weighted average remaining lease term of 3.1 years.

Maturities of lease liabilities are as follows (in millions):
2026$33.0 
202727.8 
202822.0 
202921.3 
203017.9 
Thereafter43.3 
Total undiscounted cash flows165.3 
Less: imputed interest(22.4)
Present value of lease liabilities$142.9 

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

Income TaxesRevenueEarnings Per ShareFair ValuePP&ESegmentsDebtCommitmentsNew Standards