COHERENT CORP.COHR
COHERENT CORP. Leases Disclosure
Leases
The determination of whether an arrangement is, or contains, a lease is performed at the inception of the arrangement. Classification and initial measurement of the right-of-use asset and lease liability are determined at the lease commencement
date. The Company elected the short-term lease measurement and recognition exemption; therefore, leases with an initial term of 12 months or less are not recorded on the balance sheet.
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 on our 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 recorded in Other assets and Operating lease liabilities, current and non-current on our 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 lease 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, lease term, and discount rates ($000):
| Year Ended June 30, | 2025 | 2024 | 2023 | |||||||||||||||||
| Finance lease cost | ||||||||||||||||||||
| Amortization of right-of-use assets | $ | 1,528 | $ | 1,667 | $ | 1,667 | ||||||||||||||
| Interest on lease liabilities | 947 | 1,040 | 1,124 | |||||||||||||||||
| Total finance lease cost | 2,475 | 2,707 | 2,791 | |||||||||||||||||
| Operating lease cost | 59,213 | 52,909 | 53,127 | |||||||||||||||||
| Total lease cost | $ | 61,688 | $ | 55,616 | $ | 55,918 | ||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||||||
| Operating cash flows from finance leases | $ | 947 | $ | 1,040 | $ | 1,124 | ||||||||||||||
| Operating cash flows from operating leases | 58,117 | 50,672 | 50,503 | |||||||||||||||||
| Financing cash flows from finance leases | 1,749 | 1,584 | 1,430 | |||||||||||||||||
Assets obtained in exchange for lease liabilities | ||||||||||||||||||||
| Right-of-use assets obtained in acquisitions | $ | — | $ | — | $ | 56,315 | ||||||||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | 51,357 | 64,385 | 27,720 | |||||||||||||||||
| Total assets obtained in exchange for new operating lease liabilities | $ | 51,357 | $ | 64,385 | $ | 84,035 | ||||||||||||||
Weighted-average remaining lease term (in years) | ||||||||||||||||||||
| Finance leases | 6.5 | 7.5 | 8.5 | |||||||||||||||||
| Operating leases | 6.2 | 6.6 | 6.9 | |||||||||||||||||
Weighted-average discount rate | ||||||||||||||||||||
| Finance leases | 5.6 | % | 5.6 | % | 5.6 | % | ||||||||||||||
| Operating leases | 6.9 | % | 6.8 | % | 5.5 | % | ||||||||||||||
The following table presents future minimum lease payments, which includes leases for arrangements with an initial term of more than 12 months ($000):
| Future Years | Operating Leases | Finance Leases | Total | ||||||||||||||
| Year 1 | $ | 57,830 | $ | 2,771 | $ | 60,601 | |||||||||||
| Year 2 | 47,261 | 2,847 | 50,108 | ||||||||||||||
| Year 3 | 34,712 | 2,925 | 37,637 | ||||||||||||||
| Year 4 | 32,103 | 3,006 | 35,109 | ||||||||||||||
| Year 5 | 21,712 | 3,088 | 24,800 | ||||||||||||||
| Thereafter | 69,092 | 4,669 | 73,761 | ||||||||||||||
| Total minimum lease payments | $ | 262,710 | $ | 19,306 | $ | 282,016 | |||||||||||
| Less: amounts representing interest | 55,973 | 3,172 | 59,145 | ||||||||||||||
| Present value of total lease liabilities | $ | 206,737 | $ | 16,134 | $ | 222,871 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 15, 2025 | Showing above |
| 2024 | Aug 16, 2024 | |
| 2023 | Aug 18, 2023 | |
| 2022 | Aug 29, 2022 | |
| 2021 | Aug 20, 2021 | |
| 2020 | Aug 26, 2020 | |
| 2019 | Aug 16, 2019 | |
| 2018 | Aug 28, 2018 | |
| 2017 | Aug 21, 2017 | |
| 2016 | Aug 26, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.