PARSONS CORP Leases Disclosure
The Company has operating and finance leases for corporate and project office spaces, vehicles, heavy machinery and office equipment. Our leases have remaining lease terms of year to ten years, some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases after the year.
The components of lease costs for the years ended December 31, 2025 and December 31, 2024 are as follows (in thousands):
|
|
2025 |
|
|
2024 |
|
||
Operating lease cost |
|
$ |
65,571 |
|
|
$ |
64,858 |
|
Short-term lease cost |
|
|
16,398 |
|
|
|
17,114 |
|
Amortization of right-of-use assets |
|
|
4,507 |
|
|
|
3,549 |
|
Interest on lease liabilities |
|
|
524 |
|
|
|
434 |
|
Sublease income |
|
|
(3,730 |
) |
|
|
(4,289 |
) |
Total lease cost |
|
$ |
83,270 |
|
|
$ |
81,666 |
|
Supplemental cash flow information related to leases for the years ended December 31, 2025 and December 31, 2024 is as follows (in thousands):
|
|
2025 |
|
|
2024 |
|
||
Operating cash flows for operating leases |
|
$ |
66,841 |
|
|
$ |
67,696 |
|
Operating cash flows for financing activities |
|
|
524 |
|
|
|
434 |
|
Financing cash flows for finance leases |
|
|
4,383 |
|
|
|
3,376 |
|
Right-of-use assets obtained in exchange for new |
|
|
26,574 |
|
|
|
36,583 |
|
Right-of-use assets obtained in exchange for new |
|
|
2,606 |
|
|
|
4,220 |
|
Supplemental balance sheet and other information related to leases as of December 31, 2025 and December 31, 2024 is as follows (in thousands):
|
|
2025 |
|
|
2024 |
|
||
Operating Leases: |
|
|
|
|
|
|
||
Right-of-use assets |
|
$ |
126,770 |
|
|
$ |
153,048 |
|
Lease liabilities: |
|
|
|
|
|
|
||
Current |
|
|
45,353 |
|
|
|
52,725 |
|
Long-term |
|
|
94,044 |
|
|
|
114,386 |
|
Total operating lease liabilities |
|
$ |
139,397 |
|
|
$ |
167,111 |
|
Finance Leases: |
|
|
|
|
|
|
||
Other noncurrent assets |
|
$ |
8,990 |
|
|
$ |
9,864 |
|
|
$ |
4,118 |
|
|
$ |
3,645 |
|
|
|
$ |
5,240 |
|
|
$ |
6,441 |
|
|
|
|
|
|
|
|
|
||
Weighted Average Remaining Lease Term: |
|
|
|
|
|
|
||
Operating leases |
|
3.7 Years |
|
|
3.9 Years |
|
||
Finance leases |
|
2.6 Years |
|
|
2.8 Years |
|
||
Weighted Average Discount Rate: |
|
|
|
|
|
|
||
Operating leases |
|
|
4.6 |
% |
|
|
4.5 |
% |
Finance leases |
|
|
4.9 |
% |
|
|
5.0 |
% |
As of December 31, 2025, the Company has no additional operating leases that have not yet commenced.
A maturity analysis of the future undiscounted cash flows associated with the Company’s operating and finance lease liabilities as of December 31, 2025 is as follows (in thousands):
|
|
Operating Leases |
|
|
Finance Leases |
|
||
2026 |
|
$ |
50,952 |
|
|
$ |
4,546 |
|
2027 |
|
|
35,670 |
|
|
|
3,293 |
|
2028 |
|
|
29,467 |
|
|
|
1,950 |
|
2029 |
|
|
21,893 |
|
|
|
504 |
|
2030 |
|
|
8,540 |
|
|
|
58 |
|
Thereafter |
|
|
5,147 |
|
|
|
- |
|
Total lease payments |
|
|
151,669 |
|
|
|
10,351 |
|
Less: imputed interest |
|
|
(12,272 |
) |
|
|
(993 |
) |
Total present value of lease liabilities |
|
$ |
139,397 |
|
|
$ |
9,358 |
|
Rental expense for the years ended December 31, 2025, December 31, 2024 and December 31, 2023 was $82.0 million, $82.0 million and $81.0 million, respectively, and is recorded in “Selling, general and administrative expenses” in the consolidated statements of income.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 11, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Mar 10, 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.