THERMO FISHER SCIENTIFIC INC.TMO

THERMO FISHER SCIENTIFIC INC. Leases Disclosure

10-KFiled Feb 26, 20262 min read
Leases
As a lessee, the company leases certain logistics, office, and manufacturing facilities, as well as vehicles, copiers, and other equipment. These operating leases generally have remaining lease terms between 1 month and 30 years, and some include options to extend (generally for 1 to 10 years) or have options to terminate the arrangement within 1 year.
The company has guaranteed the residual value of three leased operating facilities with lease terms ending in 2028, 2029, and 2030. The company has agreed with the lessor to comply with certain financial covenants consistent with its other debt arrangements (Note 3). The aggregate maximum guarantee under these three lease arrangements is $147 million. Operating lease ROU assets and lease liabilities for these lease arrangements are recorded on the consolidated balance sheet as of December 31, 2025, but exclude any amounts for residual value guarantees.
As a lessee, the consolidated financial statements include the following relating to operating leases:
(Dollars in millions)202520242023
Statement of income
Operating lease costs
$381 $353 $355 
Variable lease costs
116 115 115 
Statement of cash flows
Cash used in operating activities for payments of amounts included in the measurement of operating lease liabilities$374 $327 $410 
Operating lease ROU assets obtained in exchange for new operating lease liabilities197 262 234 
Balance sheet
ROU assets - included in other assets$1,447 $1,489 
Operating lease liabilities - included in other accrued expenses275 261 
Operating lease liabilities - included in other long-term liabilities1,195 1,239 
Weighted average at end of year
Remaining operating lease term7.9 years8.6 years
Discount rate4.7 %4.6 %
Lease costs arising from finance leases, short-term leases, and sublease income are not material. See Note 3 for additional information relating to finance leases.
As of December 31, 2025, future payments of operating lease liabilities are as follows:
(In millions)
2026 $331 
2027 283 
2028 237 
2029 174 
2030 142 
2031 and thereafter652 
Total lease payments1,819 
Less: imputed interest
349 
Total operating lease liability$1,470 
As a lessor, operating leases, sales-type leases and direct financing leases are not material.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 20, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 26, 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.

Other Available Disclosures

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