Smurfit Westrock plc Leases Disclosure
Years ended December 31, | |||||
2025 | 2024 | 2023 | |||
Operating lease costs | $(391) | $(264) | $(118) | ||
Variable and short-term lease costs | (144) | (123) | (47) | ||
Finance lease cost: | |||||
Amortization of lease assets | (54) | (26) | (3) | ||
Interest on lease liabilities | (20) | (14) | (1) | ||
Total lease costs | $(609) | $(427) | $(169) | ||
Balance Sheet Location | December 31, | ||||
2025 | 2024 | ||||
Operating leases: | |||||
Operating lease right-of-use assets | $1,051 | $986 | |||
Current operating lease liabilities | $321 | $309 | |||
Non-current operating lease liabilities | 774 | 710 | |||
$1,095 | $1,019 | ||||
Finance leases: | |||||
Property, plant and equipment | Property, plant and equipment, net | $472 | $419 | ||
Accumulated amortization | (84) | (36) | |||
Property, plant and equipment, net | $388 | $383 | |||
Current finance lease liabilities | $43 | $33 | |||
Non-current finance lease liabilities | 507 | 506 | |||
$550 | $539 | ||||
December 31, | |||
2025 | 2024 | ||
Weighted average remaining lease term: | |||
Operating leases | 6.5 years | 5.1 years | |
Finance leases | 11.9 years | 13.1 years | |
Weighted average discount rate: | |||
Operating leases | 5.0% | 4.9% | |
Finance leases | 5.8% | 5.8% | |
Years ended December 31, | |||||
2025 | 2024 | 2023 | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash flows related to operating leases | $384 | $265 | $118 | ||
Operating cash flows related to finance leases | 20 | 14 | 1 | ||
Financing cash flows related to finance leases | 43 | 22 | 3 | ||
Leased assets obtained in exchange for lease liabilities: | |||||
Operating leases | $390 | $213 | $133 | ||
Finance leases | $50 | $7 | $— | ||
Year ended December 31, | Operating Leases | Finance Leases | Total | |||
2026 | $379 | $66 | $445 | |||
2027 | 289 | 144 | 433 | |||
2028 | 196 | 48 | 244 | |||
2029 | 133 | 42 | 175 | |||
2030 | 85 | 44 | 129 | |||
Thereafter | 324 | 454 | 778 | |||
Total lease payments | $1,406 | $798 | $2,204 | |||
Less: Interest | (311) | (248) | (559) | |||
Present value of future lease payments | $1,095 | $550 | $1,645 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
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.