When a company leases equipment or property on terms that amount to a financed purchase, accounting puts the asset on the balance sheet with a matching lease liability beside it. The current portion is the slice due within twelve months.
Treat it as debt: the payments are fixed and owed regardless of how business goes. Separating it out matters most for lease-heavy businesses, retailers, airlines, telecoms, where lease commitments can rival actual borrowings and hide real leverage from anyone reading only the debt lines.