US Foods Holding Corp.USFD
US Foods Holding Corp. Leases Disclosure
LEASES
The Company leases certain distribution and warehouse facilities, office facilities, fleet vehicles, and office and warehouse equipment. The Company determines if an arrangement is a lease at inception and recognizes a financing or operating lease liability and right-of-use (“ROU”) asset in the Company’s Consolidated Balance Sheets. ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments over the lease term as of commencement date. For the Company’s leases that do not provide an implicit borrowing rate, the Company uses its incremental borrowing rate based on the information available as of commencement date in determining the present value of future payments. The lease terms may include options to extend, terminate or buy out the lease. When it is reasonably certain that the Company will exercise these options, the associated payments are included in ROU assets and the estimated lease liabilities. Leases with an initial term of 12 months or less are not recorded in the Company’s Consolidated Balance Sheets. The Company recognizes lease expense for leases on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for separately. For office and warehouse equipment leases, the Company accounts for the lease and non-lease components as a single lease component. Variable lease payments that do not depend on an index or a rate, such as insurance and property taxes, are excluded from the measurement of the lease liability and are recognized as variable lease cost when the obligation for that payment is incurred. As of December 27, 2025, lease agreements included residual value guarantees of up to $265 million that could potentially come due in future periods. For leases which we believe amounts will be owed under these guarantees we have included the probable residual value guarantee within the lease payments to measure the right-of-use assets and lease liabilities.
As of December 27, 2025, the Company had entered into three additional finance and operating leases related to warehouse leases for distribution centers and will commence upon building completion, with expected commencement dates ranging from 2026 to 2027 with terms of up to 15 years.
The following table presents the location of the ROU assets and lease liabilities in the Company’s Consolidated Balance Sheets:
| Leases | Consolidated Balance Sheet Location | December 27, 2025 | December 28, 2024 | |||||||||||||||||
| Assets | ||||||||||||||||||||
Operating | $ | 332 | $ | 271 | ||||||||||||||||
Financing(2) | 575 | 494 | ||||||||||||||||||
Total leased assets | $ | 907 | $ | 765 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Operating | Accrued expenses and other current liabilities | $ | 48 | $ | 42 | |||||||||||||||
Financing | Current portion of long-term debt | 130 | 102 | |||||||||||||||||
Noncurrent: | ||||||||||||||||||||
Operating | 307 | 248 | ||||||||||||||||||
Financing(2) | 427 | 389 | ||||||||||||||||||
Total lease liabilities | $ | 912 | $ | 781 | ||||||||||||||||
(1)Financing lease assets are recorded net of accumulated amortization of $307 million and $300 million as of December 27, 2025 and December 28, 2024, respectively.
(2)For the fiscal year ended 2024, excludes leases classified as held for sale in relation to the Freshway divestiture. Refer to Note 5, Acquisitions and Divestitures for additional information.
The following table presents the location of lease costs in fiscal years 2025, 2024 and 2023 in the Company’s Consolidated Statements of Comprehensive Income:
| Lease Cost | Statements of Comprehensive Income Location | 2025 | 2024 | 2023 | ||||||||||||||||||||||
| Operating lease cost | Distribution, selling and administrative costs | $ | 71 | $ | 66 | $ | 59 | |||||||||||||||||||
| Financing lease cost: | ||||||||||||||||||||||||||
Amortization of leased assets | Distribution, selling and administrative costs | 95 | 88 | 86 | ||||||||||||||||||||||
Interest on lease liabilities | Interest expense-net | 28 | 27 | 22 | ||||||||||||||||||||||
| Short-term lease cost | Distribution, selling and administrative costs | 3 | 3 | 2 | ||||||||||||||||||||||
| Variable lease cost | Distribution, selling and administrative costs | 14 | 12 | 12 | ||||||||||||||||||||||
| Net lease cost | $ | 211 | $ | 196 | $ | 181 | ||||||||||||||||||||
Future lease payments under lease agreements as of December 27, 2025 were as follows:
| Maturity of Lease Liabilities | Operating Leases | Financing Lease Obligation | Total | ||||||||||||||
| 2026 | $ | 70 | $ | 153 | $ | 223 | |||||||||||
| 2027 | 67 | 135 | 202 | ||||||||||||||
| 2028 | 53 | 106 | 159 | ||||||||||||||
| 2029 | 49 | 86 | 135 | ||||||||||||||
| 2030 | 47 | 76 | 123 | ||||||||||||||
| After 2030 | 181 | 69 | 250 | ||||||||||||||
| Total lease payments | 467 | 625 | 1,092 | ||||||||||||||
| Less amount representing interest | (112) | (68) | (180) | ||||||||||||||
| Present value of lease liabilities | $ | 355 | $ | 557 | $ | 912 | |||||||||||
Other information related to lease agreements for fiscal years 2025, 2024 and 2023 was as follows:
| Cash Paid For Amounts Included In Measurement of Liabilities | 2025 | 2024 | 2023 | |||||||||||||||||
| Operating cash flows from operating leases | $ | 68 | $ | 69 | $ | 62 | ||||||||||||||
| Operating cash flows from financing leases | 26 | 24 | 21 | |||||||||||||||||
| Financing cash flows from financing leases | 120 | 124 | 111 | |||||||||||||||||
| Lease Term and Discount Rate | December 27, 2025 | December 28, 2024 | December 31, 2023 | |||||||||||||||||
| Weighted-average remaining lease term (years): | ||||||||||||||||||||
Operating leases | 8.37 | 7.61 | 7.57 | |||||||||||||||||
Financing leases | 7.09 | 7.10 | 7.03 | |||||||||||||||||
| Weighted-average discount rate: | ||||||||||||||||||||
Operating leases | 6.6 | % | 6.8 | % | 6.5 | % | ||||||||||||||
Financing leases | 4.8 | % | 4.4 | % | 4.2 | % | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 17, 2022 | |
| 2021 | Feb 16, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 27, 2018 | |
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.