LEASES

3 Months Ended

Sep. 30, 2023

LEASESWe have operating leases for facilities, vehicles and other equipment. Our facility leases are primarily used for administrative functions, research and development (“R&D”), manufacturing, and storage and distribution. Our finance leases are not material.

Our existing leases do not contain significant restrictive provisions or residual value guarantees; however, certain leases contain provisions for the payment of maintenance, real estate taxes or insurance costs by us. Our leases have remaining lease terms ranging from less than one year to 29 years, including periods covered by options to extend the lease when it is reasonably certain that the option will be exercised.

Lease expense was $12.4 million and $9.4 million for the three months ended September 30, 2023 and 2022, respectively. Expense related to short-term leases, which are not recorded on the Condensed Consolidated Balance Sheets, was not material for the three months ended September 30, 2023 and 2022. As of September 30, 2023 and June 30, 2023, the weighted-average remaining lease term was 6.6 and 6.7 years, respectively, and the weighted-average discount rate for operating leases was 3.43% and 3.36%, respectively.

Supplemental cash flow information related to leases was as follows:


	Three Months Ended September 30,
In thousands	2023		2022
Operating cash outflows from operating leases	$	10,002	$	9,627
Right of use assets obtained in exchange for new operating lease liabilities	$	12,968	$	9,220

Maturities of lease liabilities as of September 30, 2023 were as follows:


Fiscal Year Ending June 30:	(In thousands)
2024 (remaining nine months)	$	30,560
2025	37,843
2026	29,918
2027	23,728
2028	15,664
2029 and thereafter	61,970
Total lease payments	199,683
Less imputed interest	(25,487)
Total	$	174,196

As of September 30, 2023, we did not have material leases that had not yet commenced.