Leases

12 Months Ended

Jun. 30, 2026

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, except weighted averages):


		Year Ended
		June 30,
			2026			2025			2024
Consolidated Statements of Earnings
Fixed operating lease expense		$	18,126		$	17,414		$	18,195
Variable operating lease expense			4,671			5,426			4,988
Total operating lease expense		$	22,797		$	22,840		$	23,183

Consolidated Statements of Cash Flows
Cash paid for amounts included in the measurement of operating lease liabilities		$	18,071		$	16,320		$	17,729
ROU assets obtained in exchange for operating lease obligations			6,453			8,767			11,051

		As of
Consolidated Balance Sheets		June 30,
Lease Assets and Liabilities	Balance Sheet Classification		2026			2025
Operating lease ROU assets	Right-of-use assets	$	67,333		$	73,399

Operating lease liabilities - current	Operating lease liabilities - current	$	14,935		$	14,098
Operating lease liabilities - long-term	Operating lease liabilities		74,152			83,960
Total operating lease liabilities		$	89,087		$	98,058

Weighted average remaining lease term:			6.8 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):



	June 30,
	2026
2027	$	18,155
2028		17,626
2029		17,015
2030		13,664
2031		11,376
Thereafter		25,611
Total	$	103,447
Less: Amounts representing interest		14,360
Total lease obligations	$	89,087

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.