Quarterly report [Sections 13 or 15(d)]

Leases

v3.25.1
Leases
9 Months Ended
Mar. 31, 2025
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 quarter and nine months ended March 31, 2025, the Company recognized $1.4 million and $4.0 million in variable lease expense and $4.3 million and $13.0 million relating to fixed lease expense in the Condensed Consolidated Statements of Earnings and Comprehensive Income. During the quarter and nine months ended March 31, 2024, the Company

recognized $1.3 million and $3.8 million in variable lease expense and $4.5 million and $13.7 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 (in thousands):

    

    

As of

As of

March 31, 

June 30,

Balance Sheet Classification

2025

2024

Operating leases:

 

  

 

  

  

Operating lease right-of-use assets

 

Right-of-use asset

$

83,744

$

91,285

Current operating lease liabilities

 

Operating lease liabilities - current

$

14,049

$

12,920

Noncurrent operating lease liabilities

 

Operating lease liabilities

 

79,450

 

87,618

Total operating lease liabilities

$

93,499

$

100,538

Weighted average remaining lease term (in years):

 

 

7.92

 

8.45

Weighted average discount rate (%):

 

 

4.25

 

4.23

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 quarter and nine months ended March 31(in thousands):

Quarter ended

Nine months ended

March 31, 

March 31, 

2025

 

2024

2025

 

2024

Cash amounts paid on operating lease liabilities

$

4,271

$

4,290

$

12,339

$

12,352

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

$

1,166

$

667

$

2,487

$

10,255

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):

    

March 31, 

2025

Remainder 2025

$

4,284

2026

 

17,053

2027

 

14,114

2028

 

13,789

2029

 

13,315

Thereafter

 

48,614

Total

$

111,169

Less: Amounts representing interest

 

17,670

Total lease obligations

$

93,499

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.