TPG Inc.TPG

TPG Inc. Leases Disclosure

10-KFiled Feb 17, 20262 min read
15. Operating Leases
The following tables summarize the Company’s lease cost, cash flows, and other supplemental information related to its operating leases.

The components of lease expense were as follows (in thousands):

Year Ended December 31,
202520242023
Lease cost(a):
Operating lease cost$90,121 $47,966 $29,878 
Short-term lease costs1,058 730 587 
Variable lease cost11,833 11,254 8,089 
Sublease income(2,391)(2,482)(3,400)
Total lease cost$100,621 $57,468 $35,154 
Weighted-average remaining lease term12.15.96.7
Weighted-average discount rate5.62 %5.03 %5.09 %
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(a)Office rent expense for the years ended December 31, 2025, 2024 and 2023, was $90.0 million, $48.2 million and $29.7 million, respectively.
Supplemental Consolidated Statements of Cash Flows information related to leases were as follows (in thousands):
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of lease liabilities$54,046 $42,272 $34,492 
Right-of-use assets obtained in the acquisition of Angelo Gordon— — 107,716 
Right-of-use assets obtained in exchange for new operating lease liabilities400,339 19,502 13,057 
Other non-cash changes in right-of-use assets and operating lease liabilities(114)(2,038)(743)
The following table shows the undiscounted cash flows on an annual basis for operating lease liabilities as of December 31, 2025 (in thousands):
Year Due
Lease Amount(a)
2026$6,020 
202785,898 
202888,345 
202985,749 
203080,286 
Thereafter551,877 
Total future undiscounted operating lease payments
898,175 
Less: imputed interest(293,582)
Present value of operating lease liabilities
$604,593 
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(a)Net of tenant improvement allowances

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 18, 2025
2023Feb 23, 2024
2022Feb 24, 2023

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.

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