Note 7 - Leases

3 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 7. Leases: 

As a lessee, the company leases offices, labs, and manufacturing facilities, as well as vehicles, copiers, and other equipment. The Company adopted ASU No. 2016-02 and related standards (collectively ASC 842, Leases), which replaced previous lease accounting guidance, on July 1, 2019. 

The Company recognizes operating lease expense on a straight-line basis over the lease term. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to calculate present value is Bio-Techne’s incremental borrowing rate or, if available, the rate implicit in the lease. Bio-Techne determines the incremental borrowing rate for each lease based primarily on its lease term and the economic environment of the applicable country or region. During the three months ended September 30, 2021, the Company recognized $1.1 million in variable lease expense and $3.7 million relating to fixed lease expense in the Condensed Consolidated Statements of Earnings and Comprehensive Income. 

The following table summarizes the balance sheet classification of the Company’s operating leases and amounts of right of use assets and lease liabilities and the weighted average remaining lease term and weighted average discount rate for the Company’s operating leases (asset and liability amounts are in thousands):

	Balance Sheet Classification	As of September 30, 2021
Operating leases:
Operating lease right of use assets	Right of Use Asset	$	71,396
Current operating lease liabilities	Operating lease liabilities current	$	12,001
Noncurrent operating lease liabilities	Operating lease liabilities		65,059
Total operating lease liabilities		$	77,060
Weighted average remaining lease term (in years):			7.77
Weighted average discount rate:			3.93	%

The following table summarizes the cash paid for amounts included in the measurement of operating lease liabilities and right of use assets obtained in exchange for new operating lease liabilities for the three months ended (in thousands):

	Three months ended September 30, 2021
Cash amounts paid on operating lease liabilities	$	3,758
Right of use assets obtained in exchange for lease liabilities		278

The following table summarizes the fair value of the lease liability by payment date for the Company’s operating leases by fiscal year (in thousands):

	Operating Leases
Remainder of 2022	$	10,865
2023		13,566
2024		11,897
2025		10,805
2026		10,148
Thereafter		32,236
Total	$	89,517
Less: Amounts representing interest		12,457
Total Lease obligations	$	77,060

Certain leases include one or more options to renew, with terms that extend the lease term up to five years. Bio-Techne includes option to renew the lease as part of the right of use lease asset and liability when it is reasonably certain the Company will exercise the option. In addition, certain leases contain fair value purchase and termination options with an associated penalty. In general, Bio-Techne is not reasonably certain to exercise such options.