Leases

12 Months Ended

Jun. 30, 2024

We primarily enter into lease agreements for office space, distribution centers, certain manufacturing facilities and equipment. Certain leases contain options that provide us with the ability to extend the lease term. Such options are included in the lease term when it is reasonably certain that the option will be exercised. When accounting for leases, we combine payments for leased assets, related services and other components of a lease. Payments within certain lease agreements are adjusted periodically for changes in an index or rate. In addition, leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheet.

The discount rate implicit within our leases is generally not determinable, and therefore we determine the discount rate based on our incremental borrowing rate. The incremental borrowing rate for our leases is determined based on lease term and the currency in which lease payments are made.

The components of lease expense are as follows:


	2024		2023		2022
Operating lease expense	$	67,562	$	60,411	$	46,026
Finance lease cost:
Amortization of lease assets	7,511		5,604		1,861
Interest on lease liabilities	5,338		4,383		390
Short-term lease cost	8,653		7,577		7,041
Variable lease cost	6,051		5,747		5,849
Total lease cost	$	95,115	$	83,722	$	61,167

Supplemental cash flow information related to leases is as follows:


	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$	65,286	$	57,717	$	45,371
Operating cash outflows - interest payments on finance leases	5,338		4,383		390
Financing cash outflows - payments on finance lease obligations	4,658		5,141		1,992
Right-of-use assets obtained in exchange for operating lease obligations	41,965		45,365		50,925
Right-of-use assets obtained in exchange for finance lease obligations	4,084		1,340		—

Supplemental balance sheet information related to operating leases is as follows:


	2024			2023
Operating Leases
Operating lease right-of-use assets (included within Investments and other assets)	$	225,952		$	232,733

Current operating lease liabilities (included within Other accrued liabilities)	$	54,158		$	50,523
Long-term operating lease liabilities (included within Other liabilities)	179,849			187,445
Total operating lease liabilities	$	234,007		$	237,968

Finance Leases
Buildings and building equipment	$	106,667		$	107,910
Machinery and equipment	9,298			5,113
Accumulated depreciation	(15,443)			(8,196)
Property, plant and equipment, net	$	100,522		$	104,827

Notes payable and long-term debt payable within one year	$	5,042		$	4,198
Long-term debt	98,343			100,889
Total finance lease liabilities	$	103,385		$	105,087

Weighted-average remaining lease term
Operating leases	6.4 years			6.9 years
Finance leases	19.5 years			20.8 years

Weighted-average discount rate
Operating leases	4.2		%	3.9		%
Finance leases	5.2		%	5.2		%

Maturities of lease liabilities at June 30, 2024 are as follows:


	Operating Leases		Finance Leases
2025	$	62,573	$	10,243
2026	50,428		10,164
2027	38,914		9,728
2028	29,243		8,851
2029	20,245		8,932
Thereafter	70,756		118,354
Total lease payments	$	272,159	$	166,272
Less imputed interest	38,152		62,887
Total lease liabilities	$	234,007	$	103,385

Leases

The components of lease expense are as follows:


	2024		2023		2022
Operating lease expense	$	67,562	$	60,411	$	46,026
Finance lease cost:
Amortization of lease assets	7,511		5,604		1,861
Interest on lease liabilities	5,338		4,383		390
Short-term lease cost	8,653		7,577		7,041
Variable lease cost	6,051		5,747		5,849
Total lease cost	$	95,115	$	83,722	$	61,167

Supplemental cash flow information related to leases is as follows:


	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows - payments on operating leases	$	65,286	$	57,717	$	45,371
Operating cash outflows - interest payments on finance leases	5,338		4,383		390
Financing cash outflows - payments on finance lease obligations	4,658		5,141		1,992
Right-of-use assets obtained in exchange for operating lease obligations	41,965		45,365		50,925
Right-of-use assets obtained in exchange for finance lease obligations	4,084		1,340		—

Supplemental balance sheet information related to operating leases is as follows:


	2024			2023
Operating Leases
Operating lease right-of-use assets (included within Investments and other assets)	$	225,952		$	232,733

Current operating lease liabilities (included within Other accrued liabilities)	$	54,158		$	50,523
Long-term operating lease liabilities (included within Other liabilities)	179,849			187,445
Total operating lease liabilities	$	234,007		$	237,968

Finance Leases
Buildings and building equipment	$	106,667		$	107,910
Machinery and equipment	9,298			5,113
Accumulated depreciation	(15,443)			(8,196)
Property, plant and equipment, net	$	100,522		$	104,827

Notes payable and long-term debt payable within one year	$	5,042		$	4,198
Long-term debt	98,343			100,889
Total finance lease liabilities	$	103,385		$	105,087

Weighted-average remaining lease term
Operating leases	6.4 years			6.9 years
Finance leases	19.5 years			20.8 years

Weighted-average discount rate
Operating leases	4.2		%	3.9		%
Finance leases	5.2		%	5.2		%

Maturities of lease liabilities at June 30, 2024 are as follows:


	Operating Leases		Finance Leases
2025	$	62,573	$	10,243
2026	50,428		10,164
2027	38,914		9,728
2028	29,243		8,851
2029	20,245		8,932
Thereafter	70,756		118,354
Total lease payments	$	272,159	$	166,272
Less imputed interest	38,152		62,887
Total lease liabilities	$	234,007	$	103,385