Leases

12 Months Ended

Jun. 30, 2023

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 $35,982 and $9,153, respectively, for the year ended June 30, 2023 and $34,144 and $7,501, respectively, for the year ended June 30, 2022. Variable lease costs and sublease income were not material.

Information related to operating leases is as follows:

June 30,	2023		2022
Operating lease assets, net	$	100,677	$	108,052
Operating lease liabilities
Other current liabilities	$	31,173	$	30,114
Other liabilities	72,704		80,807
Total operating lease liabilities	$	103,877	$	110,921

June 30,	2023		2022
Weighted average remaining lease term (years)	4.9		5.5
Weighted average incremental borrowing rate	3.67	%	2.92	%

Year Ended June 30,	2023		2022
Cash paid for operating leases	$	35,545	$	35,313
Right of use assets obtained in exchange for new operating lease liabilities	$	30,605	$	50,743

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 Year	Maturity of Operating Lease Liabilities
2024	$	34,235
2025	25,253
2026	19,742
2027	14,230
2028	8,416
Thereafter	11,375
Total lease payments	113,251
Less interest	9,374
Present value of lease liabilities	$	103,877

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 $1,500 in 2023, and $2,100 in each of 2022 and 2021.