v3.25.2
Leases
 12 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Leases Leases
The determination of whether an arrangement is, or contains, a lease is performed at the inception of the arrangement. Classification and initial measurement of the right-of-use asset and lease liability are determined at the lease commencement
date. The Company elected the short-term lease measurement and recognition exemption; therefore, leases with an initial term of 12 months or less are not recorded on the balance sheet.
Finance leases are generally those that allow us to substantially utilize or pay for the entire asset over its estimated useful life. Finance lease assets are recorded in Property, plant and equipment, net, and finance lease liabilities within Other accrued liabilities and Other liabilities on our Consolidated Balance Sheets. Finance lease assets are amortized in operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term, with the interest component for lease liabilities included in interest expense and recognized using the effective interest method over the lease term.
Operating leases are recorded in Other assets and Operating lease liabilities, current and non-current on our Consolidated Balance Sheets. Operating lease assets are amortized on a straight-line basis in operating expenses over the lease term.
Our lease liabilities are recognized based on the present value of the remaining fixed lease payments, over the lease term, using a discount rate of similarly secured borrowings available to the Company. For the purpose of lease liability measurement, we consider only payments that are fixed and determinable at the time of commencement. Any variable payments that depend on an index or rate are expensed as incurred. We account for non-lease components, such as common area maintenance, as a component of the lease, and include it in the initial measurement of our lease assets and corresponding liabilities. Our lease terms and conditions may include options to extend or terminate. An option is recognized when it is reasonably certain that we will exercise that option.
Our lease assets also include any lease payments made, and exclude any lease incentives received prior to commencement. Our lease assets are tested for impairment in the same manner as long-lived assets used in operations.
The following table presents lease costs, which include leases for arrangements with an initial term of more than 12 months, lease term, and discount rates ($000):
Year Ended June 30,202520242023
Finance lease cost
Amortization of right-of-use assets$1,528$1,667$1,667
Interest on lease liabilities9471,0401,124
Total finance lease cost2,4752,7072,791
Operating lease cost59,21352,90953,127
Total lease cost$61,688$55,616$55,918
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases$947 $1,040 $1,124 
Operating cash flows from operating leases58,117 50,672 50,503 
Financing cash flows from finance leases1,749 1,584 1,430 
Assets obtained in exchange for lease liabilities
Right-of-use assets obtained in acquisitions$— $— $56,315 
Right-of-use assets obtained in exchange for new operating lease liabilities51,357 64,385 27,720 
Total assets obtained in exchange for new operating lease liabilities$51,357 $64,385 $84,035 
Weighted-average remaining lease term (in years)
Finance leases6.57.58.5
Operating leases6.26.66.9
Weighted-average discount rate
Finance leases5.6 %5.6 %5.6 %
Operating leases6.9 %6.8 %5.5 %
The following table presents future minimum lease payments, which includes leases for arrangements with an initial term of more than 12 months ($000):
Future YearsOperating LeasesFinance LeasesTotal
Year 1$57,830 $2,771 $60,601 
Year 247,261 2,847 50,108 
Year 334,712 2,925 37,637 
Year 432,103 3,006 35,109 
Year 521,712 3,088 24,800 
Thereafter69,092 4,669 73,761 
Total minimum lease payments$262,710 $19,306 $282,016 
Less: amounts representing interest55,973 3,172 59,145 
Present value of total lease liabilities$206,737 $16,134 $222,871 
Leases Leases
The determination of whether an arrangement is, or contains, a lease is performed at the inception of the arrangement. Classification and initial measurement of the right-of-use asset and lease liability are determined at the lease commencement
date. The Company elected the short-term lease measurement and recognition exemption; therefore, leases with an initial term of 12 months or less are not recorded on the balance sheet.
Finance leases are generally those that allow us to substantially utilize or pay for the entire asset over its estimated useful life. Finance lease assets are recorded in Property, plant and equipment, net, and finance lease liabilities within Other accrued liabilities and Other liabilities on our Consolidated Balance Sheets. Finance lease assets are amortized in operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term, with the interest component for lease liabilities included in interest expense and recognized using the effective interest method over the lease term.
Operating leases are recorded in Other assets and Operating lease liabilities, current and non-current on our Consolidated Balance Sheets. Operating lease assets are amortized on a straight-line basis in operating expenses over the lease term.
Our lease liabilities are recognized based on the present value of the remaining fixed lease payments, over the lease term, using a discount rate of similarly secured borrowings available to the Company. For the purpose of lease liability measurement, we consider only payments that are fixed and determinable at the time of commencement. Any variable payments that depend on an index or rate are expensed as incurred. We account for non-lease components, such as common area maintenance, as a component of the lease, and include it in the initial measurement of our lease assets and corresponding liabilities. Our lease terms and conditions may include options to extend or terminate. An option is recognized when it is reasonably certain that we will exercise that option.
Our lease assets also include any lease payments made, and exclude any lease incentives received prior to commencement. Our lease assets are tested for impairment in the same manner as long-lived assets used in operations.
The following table presents lease costs, which include leases for arrangements with an initial term of more than 12 months, lease term, and discount rates ($000):
Year Ended June 30,202520242023
Finance lease cost
Amortization of right-of-use assets$1,528$1,667$1,667
Interest on lease liabilities9471,0401,124
Total finance lease cost2,4752,7072,791
Operating lease cost59,21352,90953,127
Total lease cost$61,688$55,616$55,918
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases$947 $1,040 $1,124 
Operating cash flows from operating leases58,117 50,672 50,503 
Financing cash flows from finance leases1,749 1,584 1,430 
Assets obtained in exchange for lease liabilities
Right-of-use assets obtained in acquisitions$— $— $56,315 
Right-of-use assets obtained in exchange for new operating lease liabilities51,357 64,385 27,720 
Total assets obtained in exchange for new operating lease liabilities$51,357 $64,385 $84,035 
Weighted-average remaining lease term (in years)
Finance leases6.57.58.5
Operating leases6.26.66.9
Weighted-average discount rate
Finance leases5.6 %5.6 %5.6 %
Operating leases6.9 %6.8 %5.5 %
The following table presents future minimum lease payments, which includes leases for arrangements with an initial term of more than 12 months ($000):
Future YearsOperating LeasesFinance LeasesTotal
Year 1$57,830 $2,771 $60,601 
Year 247,261 2,847 50,108 
Year 334,712 2,925 37,637 
Year 432,103 3,006 35,109 
Year 521,712 3,088 24,800 
Thereafter69,092 4,669 73,761 
Total minimum lease payments$262,710 $19,306 $282,016 
Less: amounts representing interest55,973 3,172 59,145 
Present value of total lease liabilities$206,737 $16,134 $222,871