Quarterly report [Sections 13 or 15(d)]

Leases

v3.26.1
Leases
9 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Leases

Note 6. 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 Condensed Consolidated Financial Statements include the following amounts related to operating leases where the Company is the lessee ($ in thousands):

Quarter Ended

Nine Months Ended

March 31, 

March 31, 

2026

2025

2026

2025

Condensed Consolidated Statements of Earnings

Fixed operating lease expense

$

4,826

$

4,307

$

13,636

$

13,030

Variable operating lease expense

1,154

1,413

3,651

3,994

Total operating lease expense

$

5,980

$

5,720

$

17,287

$

17,024

Condensed Consolidated Statements of Cash Flows

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

$

4,935

$

4,271

$

13,870

$

12,339

ROU assets obtained in exchange for operating lease obligations

2,627

1,166

3,275

2,487

As of

Condensed Consolidated Balance Sheets

March 31, 

June 30,

Lease Assets and Liabilities

Balance Sheet Classification

2026

2025

Operating lease ROU assets

Right-of-use assets

$

68,316

$

73,399

Operating lease liabilities - current

Operating lease liabilities - current

$

14,181

$

14,098

Operating lease liabilities - long-term

Operating lease liabilities

76,141

83,960

Total operating lease liabilities

$

90,322

$

98,058

Weighted average remaining lease term:

7.0 years

7.6 years

Weighted average discount rate:

4.3

%

4.3

%

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

  ​ ​ ​

March 31, 

2026

Remaining 2026

$

4,108

2027

 

17,618

2028

 

17,093

2029

 

16,484

2030

 

13,377

Thereafter

 

36,432

Total

$

105,112

Less: Amounts representing interest

 

14,790

Total lease obligations

$

90,322

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.