// definition
Operating lease (US GAAP)
Lessee accounting for an operating lease
Short definition
A lessee lease category under US accounting rules when finance-lease criteria are unmet. A right-of-use asset and liability are generally recognised at commencement, subject to a possible short-term lease exemption. Lease cost is usually spread over the lease term. Payments are generally operating cash flows, with exceptions for certain costs capitalised in another asset. The scope of an issuer’s capital-expenditure measure depends on its definition.
risk atlas
Knowledge map
Intuition
Lease classification shapes the presentation of expenses and payments.
Related analyses
- Microsoft: AI reporting, capex and cash flowLeases, cash investment and accounting measures with their boundaries made explicit.
Primary sources
- FASB, ASU 2016-02, Topic 842, Section AClassification criteria; lessee recognition and costs; ASC 842-20-45-5 cash-flow presentation, including certain costs capitalised in another asset. The Codification is authoritative.
- Microsoft / SEC, FY2026 Form 10-K, Note 13, LeasesRight-of-use assets, liabilities and lease payments classified as operating or financing cash flows.
- Microsoft, July 29, 2026 earnings callManagement’s capex definition includes finance leases and excludes operating leases; expected impact on future datacenter contracts.