In its latest 10-K, Asana, a work management platform, disclosed that it discounts operating leases by 9.5%. This rate is significantly higher than Asana’s work management and software peers, which report the following discount rates in their most recent filings:

*Adobe: 2.28%
*Intuit: 2.2%
*Workday: 2.35%
*Smartsheet: 5.0%

Using an inflated discount rate hides a firm’s true liabilities from investors.

Asana has $373.6 million in future operating lease obligations. The present value of those obligations, according to Asana, is $220.9 million. If we use the blended average discount rate for Asana’s peer group— 2.95%— we calculate a lease liability of $312.4 million. It means Asana is understating the present value of its lease liabilities by approximately $91.5 million, or 41.4% of its discounted future operating lease obligations and 18.2% of total liabilities.