Toast, Inc.TOST

Toast, Inc. Leases Disclosure

10-KFiled Feb 26, 20251 min read
6. Lessee Arrangements

The components of lease expense were as follows during the fiscal years ended December 31, 2024, 2023, and 2022 (in millions):

Year Ended December 31,
202420232022
Operating lease expense
$11 $12 $21 
Variable lease expense
3 3 4 
Total
$14 $15 $25 

Operating lease expense reflects the non-cash amortization of right-of-use-assets recorded within operating lease right-of-use assets and operating lease liabilities, net on Consolidated Statements of Operations.
Current operating lease liabilities, recorded within other current liabilities on our Consolidated Balance Sheets, were $10 million and $11 million as of December 31, 2024 and 2023, respectively.

The weighted-average remaining lease term and discount rate for our operating leases were as follows:

Year Ended December 31,
20242023
Weighted-average remaining lease term (years)
3.84.4
Weighted-average discount rate
6.74 %6.34 %

At December 31, 2024, future lease payments under our operating leases were as follows (in millions):

Amount
2025$12 
202611 
20278 
20284 
20291 
Thereafter3 
Total future minimum lease payments39 
Less: Imputed interest5 
Present value of future minimum lease payments$34 

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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