LEASES

6 Months Ended

Dec. 31, 2023

We 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 $12.9 million and $25.2 million for the three and six months ended December 31, 2023, respectively and $9.6 million and $19.1 million for the three and six months ended December 31, 2022, respectively. Expenses related to short-term leases, which were not recorded on the Condensed Consolidated Balance Sheets, were not material for the three and six months ended December 31, 2023 and 2022. As of December 31, 2023 and June 30, 2023, the weighted-average remaining lease term was 6.8 and 6.7 years, respectively, and the weighted-average discount rate for operating leases was 3.98% and 3.36%, respectively.

Supplemental cash flow information related to leases was as follows:


	Six Months Ended December 31,
In thousands	2023		2022
Operating cash outflows from operating leases	$	20,504	$	19,363
Right of use assets obtained in exchange for new operating lease liabilities	$	38,513	$	18,760

Maturities of lease liabilities as of December 31, 2023 were as follows:


Fiscal Year Ending June 30:	(In thousands)
2024 (remaining six months)	$	20,308
2025	41,758
2026	34,409
2027	27,784
2028	19,492
2029 and thereafter	82,108
Total lease payments	225,859
Less imputed interest	(34,380)
Total	$	191,479

As of December 31, 2023, we did not have material leases that had not yet commenced.