Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.24.3
Leases
3 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Leases

Note 7. Leases:

As a lessee, the Company leases offices, labs, and manufacturing facilities, as well as vehicles, copiers, and other equipment. 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 three months ended September 30, 2024, the Company recognized $1.3 million in variable lease expense and $4.4 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):

    

    

As of

September 30, 

Balance Sheet Classification

2024

Operating leases:

 

  

 

  

Operating lease right-of-use assets

 

Right-of-use asset

$

89,221

Current operating lease liabilities

 

Operating lease liabilities - current

$

13,485

Noncurrent operating lease liabilities

 

Operating lease liabilities

 

85,433

Total operating lease liabilities

$

98,918

Weighted average remaining lease term (in years):

 

 

8.30

Weighted average discount rate (%):

 

 

4.24

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 three months ended (in thousands):

Quarter ended

September 30, 

    

2024

Cash amounts paid on operating lease liabilities

$

3,885

Right-of-use assets obtained in exchange for lease liabilities

$

799

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):

    

September 30, 

2024

Remainder 2025

$

12,668

2026

 

16,647

2027

 

13,767

2028

 

13,593

2029

 

13,125

Thereafter

 

48,790

Total

$

118,590

Less: Amounts representing interest

 

19,672

Total lease obligations

$

98,918

Certain leases include one or more options to renew, with terms that extend the lease term up to five years. Bio-Techne includes the 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.