REGENERON PHARMACEUTICALS, INC.REGN
REGENERON PHARMACEUTICALS, INC. Leases Disclosure
Leases
The Company conducts certain of its research, development, and administrative activities at leased facilities. The Company also leases vehicles and other assets.
Tarrytown, New York Corporate Headquarters
The Company leases laboratory and office facilities for its corporate headquarters in Tarrytown, New York (the "Facility") under the Third Amended and Restated Lease and Remedies Agreement (the "Lease") with BA Leasing BSC, LLC, an affiliate of Banc of America Leasing & Capital, LLC ("BAL"), as lessor, and the Third Amended and Restated Participation Agreement (the "Participation Agreement") with Bank of America, N.A., as administrative agent, and a syndicate of lenders (collectively with BAL, the "Participants"), as rent assignees. The Lease, Participation Agreement, and certain related agreements provide for $720.0 million of lease financing (previously advanced by the Participants in March 2017 in connection with the acquisition by BAL of the Facility and the Company's lease of the Facility from BAL), which matures when the term of the Lease expires in March 2027, at which time all amounts outstanding thereunder will become payable in full. The Company has the option to further extend the maturity date of the Participation Agreement and the term of the Lease for an additional five-year period, subject to the consent of the Participants and certain other conditions. The Company also has the option to (a) purchase the Facility by paying an amount equal to the outstanding principal amount of the Participants' advances under the Participation Agreement, all accrued and unpaid yield thereon, and all other outstanding amounts under the Participation Agreement, Lease, and certain related documents or (b) sell the Facility to a third party on behalf of BAL.
Pursuant to the Lease, the Company pays all maintenance, insurance, taxes, and other costs arising out of the use of the Facility. The Company is also required to make monthly payments of basic rent to satisfy the yield payable to the Participants on their outstanding advances under the Participation Agreement. Such advances accrue yield at a variable rate per annum based on the one-month forward-looking Secured Overnight Financing Rate ("SOFR") term rate, plus a spread adjustment, plus an applicable margin that varies with the Company's debt rating and total leverage ratio.
The Lease is classified as a finance lease as the Company has the option to purchase the Facility under terms that make it reasonably certain to be exercised. The agreements governing the Lease financing contain financial and operating covenants. Such financial covenants and certain of the operating covenants are substantially similar to the covenants set forth in the Credit Agreement. The Company was in compliance with all such covenants as of December 31, 2025.
Aggregate Lease Information
Amounts recognized in the Consolidated Balance Sheet related to the Company's leases are included in the table below.
| As of December 31, | ||||||||||||||||||||
| (In millions) | Classification | 2025 | 2024 | |||||||||||||||||
Assets: | ||||||||||||||||||||
| Finance lease right-of-use assets | $ | 576.7 | $ | 591.2 | ||||||||||||||||
Operating lease right-of-use assets | 245.8 | 217.4 | ||||||||||||||||||
| $ | 822.5 | $ | 808.6 | |||||||||||||||||
Liabilities: | ||||||||||||||||||||
Finance lease liabilities - noncurrent | Finance lease liabilities | $ | 720.0 | $ | 720.0 | |||||||||||||||
Operating lease liabilities - current | 37.8 | 30.3 | ||||||||||||||||||
Operating lease liabilities - noncurrent | 229.0 | 204.1 | ||||||||||||||||||
| $ | 986.8 | $ | 954.4 | |||||||||||||||||
(a) Finance lease right-of-use assets were recorded net of accumulated amortization of $162.9 million and $148.4 million as of December 31, 2025 and 2024, respectively | ||||||||||||||||||||
(b) Operating lease right-of-use assets were recorded net of accumulated amortization of $68.8 million and $78.4 million as of December 31, 2025 and 2024, respectively | ||||||||||||||||||||
Lease costs consist of the following:
| Year Ended December 31, | ||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
Operating lease costs | $ | 35.8 | $ | 36.5 | $ | 19.2 | ||||||||||||||
Finance lease costs: | ||||||||||||||||||||
| Amortization of finance lease right-of-use assets | 14.5 | 14.5 | 14.5 | |||||||||||||||||
| Interest on finance lease liabilities | 39.1 | 46.1 | 45.0 | |||||||||||||||||
Total finance lease costs | 53.6 | 60.6 | 59.5 | |||||||||||||||||
Total lease costs | $ | 89.4 | $ | 97.1 | $ | 78.7 | ||||||||||||||
Other information related to the Company's leases includes the following:
| As of December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
Weighted-average remaining lease term (in years): | ||||||||||||||
Finance leases | 1.2 | 2.2 | ||||||||||||
Operating leases | 6.9 | 7.2 | ||||||||||||
Weighted-average discount rate: | ||||||||||||||
Finance leases | 4.40% | 5.03% | ||||||||||||
Operating leases | 5.38% | 5.52% | ||||||||||||
Supplemental cash flow information related to the Company's leases includes the following:
| Year Ended December 31, | ||||||||||||||||||||
| (In millions) | 2025 | 2024 | 2023 | |||||||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities (included within cash flows from operating activities) | $ | 39.6 | $ | 41.4 | $ | 22.5 | ||||||||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 59.1 | $ | 188.1 | $ | 31.9 | ||||||||||||||
The following is a maturity analysis of the Company's lease liabilities as of December 31, 2025:
| (In millions) | Finance Leases | Operating Leases | Total | |||||||||||||||||
| 2026 | $ | 33.7 | $ | 52.1 | $ | 85.8 | ||||||||||||||
| 2027 | 727.6 | 52.3 | 779.9 | |||||||||||||||||
| 2028 | — | 48.5 | 48.5 | |||||||||||||||||
| 2029 | — | 40.3 | 40.3 | |||||||||||||||||
| 2030 | — | 31.2 | 31.2 | |||||||||||||||||
Thereafter | — | 97.5 | 97.5 | |||||||||||||||||
| Total undiscounted lease payments | 761.3 | 321.9 | 1,083.2 | |||||||||||||||||
| Imputed interest | (41.3) | (55.1) | (96.4) | |||||||||||||||||
Total lease liabilities | $ | 720.0 | $ | 266.8 | $ | 986.8 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 4, 2026 | Showing above |
| 2024 | Feb 5, 2025 | |
| 2023 | Feb 5, 2024 | |
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.