Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Leases

Note 7 - Leases
9 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

Note 7. Leases: 


As a lessee, the company leases offices, labs, and manufacturing facilities, as well as vehicles, copiers, and other equipment. The Company adopted ASU No. 2016-02 and related standards (collectively ASC 842, Leases), which replaced previous lease accounting guidance, on July 1, 2019. 


The Company recognizes operating lease expense on a straight-line basis over the lease term. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is Bio-Techne’s incremental borrowing rate or, if available, the rate implicit in the lease. Bio-Techne determines the incremental borrowing rate for each lease based primarily on its lease term and the economic environment of the applicable country or region. During the nine months ended March 31, 2021, the Company recognized $2.4 million in variable lease expense and $9.9 million relating to fixed lease expense in the Condensed Consolidated Statements of Earnings and Comprehensive Income. 


The following table summarizes the balance sheet classification of the Company’s operating leases and amounts of right of use assets and lease liabilities and the weighted average remaining lease term and weighted average discount rate for the Company’s operating leases (asset and liability amounts are in thousands):



Balance Sheet



As of: March

31, 2021


Operating leases:


Operating lease right of use assets

Right of Use Asset

  $ 71,830  

Current operating lease liabilities

Operating lease liabilities current

  $ 10,414  

Noncurrent operating lease liabilities

Operating lease liabilities


Total operating lease liabilities

  $ 77,230  

Weighted average remaining lease term (in years):


Weighted average discount rate:




The following table summarizes the cash paid for amounts included in the measurement of operating lease liabilities and right of use assets obtained in exchange for new operating lease liabilities for the nine months ended (in thousands):



Nine months

ended March

31, 2021


Cash amounts paid on operating lease liabilities

  $ 9,898  

Right of use assets obtained in exchange for lease liabilities




The following table summarizes the fair value of the lease liability by payment date for the Company’s operating leases by fiscal year (in thousands):






Remainder of 2021

  $ 4,498  












  $ 92,741  

Less: Amounts representing interest


Total Lease obligations

  $ 77,230  


Certain leases include one or more options to renew, with terms that extend the lease term up to five years. Bio-Techne includes option to renew the lease as part of the right of use lease asset and liability when it is reasonably certain the Company will exercise the option. In addition, certain leases contain fair value purchase and termination options with an associated penalty. In general, Bio-Techne is not reasonably certain to exercise such options.