Leases

9 Months Ended

Mar. 31, 2026

Leases [Abstract]

Leases

Leases

We determine if an arrangement is a lease at inception for arrangements with an initial term of more than 12 months, and classify it as either finance or operating.

Finance leases are generally those that allow us to substantially utilize or pay for the entire asset over its estimated useful life. Finance lease assets are recorded in Property, plant and equipment, net, and finance lease liabilities within Other accrued liabilities and Other liabilities on our Condensed Consolidated Balance Sheets. Finance lease assets are amortized in operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term, with the interest component for lease liabilities included in interest expense and recognized using the effective interest method over the lease term.

Operating leases are leases that do not qualify as finance leases and are recorded in Other assets and Operating lease current liabilities and Operating lease liabilities on our Condensed Consolidated Balance Sheets. Operating lease assets are amortized on a straight-line basis in operating expenses over the lease term.

Our lease liabilities are recognized based on the present value of the remaining fixed lease payments, over the lease term, using a discount rate of similarly secured borrowings available to the Company. For the purpose of lease liability measurement, we consider only payments that are fixed and determinable at the time of commencement. Any variable payments that depend on an index or rate are expensed as incurred. We account for non-lease components, such as common area maintenance, as a component of the lease, and include it in the initial measurement of our leased assets and corresponding liabilities. Our lease terms and conditions may include options to extend or terminate. An option is recognized when it is reasonably certain that we will exercise that option.

Our lease assets also include any lease payments made, and exclude any lease incentives received prior to commencement. Our lease assets are tested for impairment in the same manner as long-lived assets used in operations.

The following table presents lease costs, which include leases for arrangements with an initial term of more than 12 months, remaining lease terms, and discount rates ($000):

	Three Months Ended March 31, 2026			Nine Months Ended March 31, 2026
Finance lease cost
Interest on lease liabilities	$	208		$	644
Total finance lease cost	208			644
Operating lease cost	15,616			44,871
Sublease income	(89)			(901)
Total lease cost	$	15,735		$	44,614
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	208		$	644
Operating cash flows from operating leases	15,857			44,936
Financing cash flows from finance leases	494			1,425
Weighted-average remaining lease term (in years)
Finance leases	5.8
Operating leases	5.7
Weighted-average discount rate
Finance leases	5.6		%
Operating leases	6.6		%

	Three Months Ended March 31, 2025		Nine Months Ended March 31, 2025
Finance lease cost
Amortization of right-of-use assets	$	417	$	1,250
Interest on lease liabilities	234		720
Total finance lease cost	651		1,970
Operating lease cost	14,140		42,507
Total lease cost	$	14,791	$	44,477
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	234	$	720
Operating cash flows from operating leases	13,565		41,194
Financing cash flows from finance leases	449		1,294

Leases

Leases

We determine if an arrangement is a lease at inception for arrangements with an initial term of more than 12 months, and classify it as either finance or operating.

Finance leases are generally those that allow us to substantially utilize or pay for the entire asset over its estimated useful life. Finance lease assets are recorded in Property, plant and equipment, net, and finance lease liabilities within Other accrued liabilities and Other liabilities on our Condensed Consolidated Balance Sheets. Finance lease assets are amortized in operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term, with the interest component for lease liabilities included in interest expense and recognized using the effective interest method over the lease term.

Operating leases are leases that do not qualify as finance leases and are recorded in Other assets and Operating lease current liabilities and Operating lease liabilities on our Condensed Consolidated Balance Sheets. Operating lease assets are amortized on a straight-line basis in operating expenses over the lease term.

Our lease liabilities are recognized based on the present value of the remaining fixed lease payments, over the lease term, using a discount rate of similarly secured borrowings available to the Company. For the purpose of lease liability measurement, we consider only payments that are fixed and determinable at the time of commencement. Any variable payments that depend on an index or rate are expensed as incurred. We account for non-lease components, such as common area maintenance, as a component of the lease, and include it in the initial measurement of our leased assets and corresponding liabilities. Our lease terms and conditions may include options to extend or terminate. An option is recognized when it is reasonably certain that we will exercise that option.

Our lease assets also include any lease payments made, and exclude any lease incentives received prior to commencement. Our lease assets are tested for impairment in the same manner as long-lived assets used in operations.

The following table presents lease costs, which include leases for arrangements with an initial term of more than 12 months, remaining lease terms, and discount rates ($000):

	Three Months Ended March 31, 2026			Nine Months Ended March 31, 2026
Finance lease cost
Interest on lease liabilities	$	208		$	644
Total finance lease cost	208			644
Operating lease cost	15,616			44,871
Sublease income	(89)			(901)
Total lease cost	$	15,735		$	44,614
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	208		$	644
Operating cash flows from operating leases	15,857			44,936
Financing cash flows from finance leases	494			1,425
Weighted-average remaining lease term (in years)
Finance leases	5.8
Operating leases	5.7
Weighted-average discount rate
Finance leases	5.6		%
Operating leases	6.6		%

	Three Months Ended March 31, 2025		Nine Months Ended March 31, 2025
Finance lease cost
Amortization of right-of-use assets	$	417	$	1,250
Interest on lease liabilities	234		720
Total finance lease cost	651		1,970
Operating lease cost	14,140		42,507
Total lease cost	$	14,791	$	44,477
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	234	$	720
Operating cash flows from operating leases	13,565		41,194
Financing cash flows from finance leases	449		1,294