WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPWAB

WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORP Leases Disclosure

10-KFiled Feb 13, 20261 min read
LEASES
The Company leases certain property, buildings and equipment. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of lease payments. Many of the Company's leases include rental escalation clauses, renewal options, and/or termination options that are factored into our determination of lease payments when appropriate. The Company does not separate lease and non-lease components. Operating lease expense for the years ended December 31, 2025, 2024, and 2023 was $72 million, $71 million, and $64 million, respectively. During 2025 and 2024, new operating leases of $149 million and $76 million, respectively, were added during the year. As most of the Company's leases do not provide a readily stated discount rate, the Company must estimate the rate to discount lease payments using its incremental borrowing rate. Wabtec does not have material financing leases, short-term or variable leases or sublease income.

Scheduled payments of operating lease liabilities are as follows:
In millionsOperating Leases
2026
$77 
2027
66 
2028
57 
2029
50 
2030
43 
Thereafter156 
Total lease payments449 
Less: Present value discount(57)
Present value lease liabilities$392 

The following table summarizes the remaining lease term and discount rate assumptions used to develop the present value of operating lease liabilities:
December 31, 2025December 31, 2024
Weighted-average remaining lease term (years)7.97.9
Weighted-average discount rate3.6 %2.9 %

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 12, 2025
2023Feb 14, 2024
2022Feb 15, 2023
2021Feb 17, 2022
2020Feb 19, 2021
2019Feb 24, 2020
2017Feb 26, 2018
2016Feb 28, 2017
2015Feb 19, 2016

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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