We have operating leases with initial noncancelable lease terms in excess of one year covering the rental of various facilities and equipment. Certain of these leases contain renewal options and some provide options to purchase during the lease term. Our operating leases include leases for real estate for some of our office and manufacturing facilities as well as manufacturing and non-manufacturing equipment used in our business. The remaining lease terms for these operating leases range from 1 year to 8 years.

We have finance leases with initial noncancelable lease terms in excess of one year covering the rental of various facilities and equipment. Certain of these leases contain renewal options and some provide options to purchase during the lease term. These leases are generally for manufacturing and non-manufacturing equipment used in our business and warehouse facilities. The remaining lease terms for these finance leases range from 4 years to 8 years.

As of June 30, 2026 and 2025, the weighted-average discount rate of our operating leases was 5.2% and 5.1%, respectively. As of June 30, 2026 and 2025, the weighted-average discount rate of our finance leases was 4.5%.


	2026		2025		2024
Operating lease cost in Cost of Sales and Selling, General and Administrative Expenses	$	14,315	$	14,222	$	10,004
Finance lease cost:
Amortization of assets in Cost of Sales and Selling, General and Administrative Expenses	$	2,308	$	2,156	$	2,056
Interest on lease liabilities in Other, Net	434		78		66
Total finance lease cost	$	2,742	$	2,234	$	2,122
Short-term lease cost in Cost of Sales and Selling, General and Administrative Expenses	3,402		3,526		5,653
Total net lease cost	$	20,459	$	19,982	$	17,779


	2026		2025
Operating Leases
Operating Lease Right-Of-Use Assets	$	42,628	$	52,227

Current operating lease liabilities in Accrued Liabilities	$	9,175	$	11,255
Noncurrent Operating Lease Liabilities	34,966		42,720
Total operating lease liabilities	$	44,141	$	53,975

Finance Leases


Finance lease right-of-use assets in Property, Plant and Equipment-Net	$	10,167	$	1,560

Current finance lease liabilities in Accrued Liabilities	$	2,134	$	463
Noncurrent finance lease liabilities in Other Noncurrent Liabilities	8,230		1,115
Total finance lease liabilities	$	10,364	$	1,578


	2026		2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	14,432	$	13,532	$	10,199
Operating cash flows from finance leases	$	434	$	78	$	66
Financing cash flows from finance leases	$	2,128	$	2,053	$	1,958

Supplemental noncash information on operating lease liabilities arising from obtaining right-of-use assets	$	625	$	10,102	$	38,318

Supplemental noncash information on finance lease liabilities arising from obtaining right-of-use assets	$	10,914	$	854	$	534


	Operating Leases		Finance Leases
2027	$	11,237	$	2,557
2028	7,638		2,623
2029	6,866		2,690
2030	5,713		2,731
2031	5,900		529
Thereafter	15,127		349
Total minimum payments	$	52,481	$	11,479
Less amount representing interest	(8,340)		(1,115)
Present value of lease obligations	$	44,141	$	10,364

As of June 30, 2026 and 2025, the weighted-average remaining term of our operating leases was 6.3 years and 6.7 years, respectively. As of June 30, 2026 and 2025, the weighted-average remaining term of our finance leases was 4.4 years and 6.1 years, respectively.

We have a lease commitment with fixed cash payments totaling approximately $159 million for a lease that had not commenced as of June 30, 2026. This lease has an initial term of 15 years for warehousing space in Columbus, Ohio. In accordance with accounting guidance for leases, this commitment is properly excluded from the Consolidated Balance Sheet as of June 30, 2026. A right-of-use asset and lease liability will be recorded based on the present value of the lease payments when the lease commences in fiscal 2027.