Xperi Inc. Leases Disclosure
NOTE 10 – LEASES
The Company leases office and research facilities, data centers and office equipment under operating leases with various expiration dates through 2032. Certain leases offer the option to renew and to terminate before the expiration date. Leases with an initial term of 12 months or less are not recognized on the balance sheets; expense for these leases is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not considered when evaluating the ROU assets and lease liabilities.
The Company subleases certain real estate to third parties. The sublease portfolio consists of operating leases for previously exited office space. Certain subleases include variable payments for operating costs. The subleases are generally co-terminus with the head lease, or shorter. Subleases generally do not include any residual value guarantees or restrictions or covenants imposed by the leases. Income from subleases is recognized as a reduction to selling, general and administrative expenses.
Due to factors such as changes in how certain office facilities were being used, significant decrease in the expected market price associated with the leased facilities, and expected delays in the ability to sublease vacated office spaces, the Company impaired certain ROU assets. There was no impairment of ROU assets for the year ended December 31, 2025. Impairment charges of $1.5 million and $1.7 million were recorded in the years ended December 31, 2024 and 2023, respectively, to reduce the carrying amount of certain ROU assets, including the related leasehold improvements.
The components of operating lease costs were as follows (in thousands):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Fixed lease cost (1) |
|
$ |
16,631 |
|
|
$ |
16,966 |
|
|
$ |
20,306 |
|
Variable lease cost |
|
|
4,655 |
|
|
|
4,164 |
|
|
|
5,130 |
|
Less: sublease income |
|
|
(8,609 |
) |
|
|
(8,192 |
) |
|
|
(9,896 |
) |
Total operating lease cost |
|
$ |
12,677 |
|
|
$ |
12,938 |
|
|
$ |
15,540 |
|
The following table presents supplemental cash flow information arising from lease transactions (in thousands):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cash payments included in the measurement of operating lease liabilities |
|
$ |
16,502 |
|
|
$ |
17,669 |
|
|
$ |
19,968 |
|
ROU assets obtained in exchange for lease obligations |
|
$ |
11,475 |
|
|
$ |
5,975 |
|
|
$ |
11,563 |
|
The weighted-average remaining term of the Company’s operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Weighted-average remaining lease term (in years) |
|
|
4.4 |
|
|
|
2.9 |
|
Weighted-average discount rate |
|
|
6.9 |
% |
|
|
5.5 |
% |
Future minimum lease payments and related lease liabilities as of December 31, 2025 were as follows (in thousands):
|
|
Operating Lease Payments (1) |
|
|
Sublease Income |
|
|
Net Operating Lease Payments |
|
|||
2026 |
|
$ |
10,662 |
|
|
$ |
(1,563 |
) |
|
$ |
9,099 |
|
2027 |
|
|
8,591 |
|
|
|
(368 |
) |
|
|
8,223 |
|
2028 |
|
|
5,981 |
|
|
|
(379 |
) |
|
|
5,602 |
|
2029 |
|
|
3,906 |
|
|
|
(291 |
) |
|
|
3,615 |
|
2030 |
|
|
2,404 |
|
|
|
— |
|
|
|
2,404 |
|
Thereafter |
|
|
3,879 |
|
|
|
— |
|
|
|
3,879 |
|
Total lease payments |
|
|
35,423 |
|
|
$ |
(2,601 |
) |
|
$ |
32,822 |
|
Less: imputed interest |
|
|
(5,078 |
) |
|
|
|
|
|
|
||
Present value of operating lease liabilities |
|
$ |
30,345 |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|||
Less: operating lease liabilities, current portion |
|
|
(8,858 |
) |
|
|
|
|
|
|
||
Noncurrent operating lease liabilities |
|
$ |
21,487 |
|
|
|
|
|
|
|
||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 1, 2024 | |
| 2022 | Mar 6, 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.