v3.25.2
Leases
 12 Months Ended
Jun. 30, 2025
Leases [Abstract]  
Lessee, Operating Leases LEASES
The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in selling, distribution, and administrative expense on the statements of consolidated income. Operating lease costs and short-term lease costs were $47,591 and $14,458, respectively, for the year ended June 30, 2025 and $38,905 and $12,683, respectively, for the year ended June 30, 2024. Variable lease costs and sublease income were not material.
Information related to operating leases is as follows:
June 30,20252024
Operating lease assets, net$188,654 $133,289 
Operating lease liabilities
Other current liabilities$39,776 $33,466 
Other liabilities158,544 104,143 
Total operating lease liabilities$198,320 $137,609 
June 30,20252024
Weighted average remaining lease term (years)6.65.5
Weighted average incremental borrowing rate5.01 %4.51 %
Year Ended June 30,20252024
Cash paid for operating leases$45,919 $38,130 
Right of use assets obtained in exchange for new operating lease liabilities$98,196 $67,535 

The table below summarizes the aggregate maturities of liabilities pertaining to operating leases with terms greater than one year for each of the next five years:
Fiscal YearMaturity of Operating Lease Liabilities
2026$48,696 
202742,252 
202834,087 
202927,723 
203018,787 
Thereafter65,160 
Total lease payments236,705 
Less interest38,385 
Present value of lease liabilities$198,320 
The Company maintains lease agreements for many of the operating facilities of businesses it acquires from previous owners. In many cases, the previous owners of the business acquired become employees of Applied and occupy management positions within those businesses. The payments under lease agreements of this nature totaled $2,100 in fiscal 2025, $2,250 in fiscal 2024, and $1,500 in fiscal 2023.