Annual report [Section 13 and 15(d), not S-K Item 405]

Leases

v3.25.2
Leases
12 Months Ended
Jun. 30, 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 determines whether a contract is a lease or contains a lease at inception date. Upon commencement date, operating lease right-of-use assets and liabilities are recognized based on the present value of lease payments over the lease term. The discount rate used to calculate present value is the Company’s incremental borrowing rate or, if available, the rate implicit in the lease. The Company determines the incremental borrowing rate for each lease based primarily on its lease term and the economic environment of the applicable country or region. The Company recognizes operating lease expense on a straight-line basis over the lease term. Further, as part of our adoption of ASC 842, the Company also made the accounting policy elections to not capitalize short term leases (defined as a lease with a lease term that is less than 12 months) and to combine lease and non-lease components for all asset classes in determining the lease payments.

The Consolidated Financial Statements include the following amounts related to operating leases where the Company is the lessee ($ in thousands):

Year ended

June 30, 

2025

2024

2023

Consolidated Statements of Earnings

Fixed operating lease expense

$

17,414

$

18,195

$

15,941

Variable operating lease expense

5,426

4,988

4,437

Total operating lease expense

$

22,840

$

23,183

$

20,378

Consolidated Statements of Cash Flows

Cash paid for amounts included in the measurement of operating lease liabilities

$

16,320

$

17,729

$

14,934

ROU assets obtained in exchange for operating lease obligations

8,767

11,051

48,103

Consolidated Balance Sheets

Lease Assets and Liabilities

Balance Sheet Classification

Operating lease ROU assets

Right-of-use asset

$

73,399

$

91,285

Operating lease liabilities - current

Operating lease liabilities - current

$

14,098

$

12,920

Operating lease liabilities - long-term

Operating lease liabilities

83,960

87,618

Total operating lease liabilities

$

98,058

$

100,538

Weighted average remaining lease term:

7.6 years

8.5 years

Weighted average discount rate:

4.3

%

4.2

%

The following table summarizes payments by date for the Company’s operating leases, which is then reconciled to our total lease obligation (in thousands):

    

June 30, 

2025

2026

$

17,685

2027

 

16,587

2028

 

16,312

2029

 

15,905

2030

 

13,444

Thereafter

 

35,932

Total

$

115,865

Less: Amounts representing interest

 

17,807

Total lease obligations

$

98,058

Certain leases include one or more options to renew, with terms that extend the lease term up to five years. The Company 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, the Company is not reasonably certain to exercise such options.