v3.26.1
Leases
 12 Months Ended
Jun. 30, 2026
Leases [Abstract]  
Leases Leases
We determine if an arrangement is a lease at inception for arrangements with an initial term of more than 12 months, and classify it as either finance or operating.
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 leases that do not qualify as finance leases and are recorded in Other assets and Operating lease current liabilities and Operating lease liabilities 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 leased 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 ($000):
Year Ended June 30,202620252024
Finance lease cost
Amortization of right-of-use assets$—$1,528$1,667
Interest on lease liabilities8459471,040
Total finance lease cost8452,4752,707
Operating lease cost64,03559,21352,909
Sublease income(1,373)——
Total lease cost$63,507$61,688$55,616
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases$845 $947 $1,040 
Operating cash flows from operating leases62,996 58,117 50,672 
Financing cash flows from finance leases1,926 1,749 1,584 
Assets obtained in exchange for lease liabilities
Right-of-use assets obtained in exchange for new operating lease liabilities$135,996 $51,357 $64,385 
Weighted-average remaining lease term (in years)
Finance leases5.56.57.5
Operating leases5.86.26.6
Weighted-average discount rate
Finance leases5.6 %5.6 %5.6 %
Operating leases6.1 %6.9 %6.8 %
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$77,516 $2,847 $80,363 
Year 269,533 2,925 72,458 
Year 360,689 3,006 63,695 
Year 451,357 3,088 54,445 
Year 540,652 3,173 43,825 
Thereafter74,763 1,521 76,284 
Total minimum lease payments374,510 16,560 391,070 
Less: amounts representing interest58,300 2,327 60,627 
Present value of total lease liabilities$316,210 $14,233 $330,443 
Leases Leases
We determine if an arrangement is a lease at inception for arrangements with an initial term of more than 12 months, and classify it as either finance or operating.
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 leases that do not qualify as finance leases and are recorded in Other assets and Operating lease current liabilities and Operating lease liabilities 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 leased 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 ($000):
Year Ended June 30,202620252024
Finance lease cost
Amortization of right-of-use assets$—$1,528$1,667
Interest on lease liabilities8459471,040
Total finance lease cost8452,4752,707
Operating lease cost64,03559,21352,909
Sublease income(1,373)——
Total lease cost$63,507$61,688$55,616
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases$845 $947 $1,040 
Operating cash flows from operating leases62,996 58,117 50,672 
Financing cash flows from finance leases1,926 1,749 1,584 
Assets obtained in exchange for lease liabilities
Right-of-use assets obtained in exchange for new operating lease liabilities$135,996 $51,357 $64,385 
Weighted-average remaining lease term (in years)
Finance leases5.56.57.5
Operating leases5.86.26.6
Weighted-average discount rate
Finance leases5.6 %5.6 %5.6 %
Operating leases6.1 %6.9 %6.8 %
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$77,516 $2,847 $80,363 
Year 269,533 2,925 72,458 
Year 360,689 3,006 63,695 
Year 451,357 3,088 54,445 
Year 540,652 3,173 43,825 
Thereafter74,763 1,521 76,284 
Total minimum lease payments374,510 16,560 391,070 
Less: amounts representing interest58,300 2,327 60,627 
Present value of total lease liabilities$316,210 $14,233 $330,443