Leases
The Company records ROU assets and operating lease liabilities on the consolidated balance sheets for several types of operating leases, including land and buildings, equipment (e.g. trucks and forklifts), vehicles and computer equipment. On the lease commencement date, the Company measures and records a ROU asset and lease liability equal to the present value of the remaining lease payments, discounted using the rate implicit in the lease (or if that rate cannot be readily determined, the Company's incremental borrowing rate). Operating leases are included in other assets, accrued liabilities (current) and other liabilities (long-term) on the consolidated balance sheets.
The Company elected the practical expedient to not separate lease components from nonlease components for all asset classes. The Company recognizes lease expense in the consolidated statements of operations on a straight-line basis over the lease term. The Company elected to not recognize ROU assets and lease liabilities for short-term leases with an initial term of 12 months or less for all asset classes. Leases with the option to extend their term or terminate early are reflected in the lease term when it is reasonably certain that the Company will exercise such options. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable lease payments are not presented as part of the ROU asset or lease liability.
Total lease cost was $15.1 million, $14.6 million and $14.0 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively. The following table sets forth the components of the Company's lease cost for the fiscal years ended June 30, 2025, 2024 and 2023:
| | | | | | | | | | | | | | | | | | | | |
| | Years Ended June 30, |
| ($ in millions) | | 2025 | | 2024 | | 2023 |
| Operating lease cost | | $ | 10.1 | | | $ | 11.0 | | | $ | 11.3 | |
| Short-term lease cost | | 5.7 | | | 4.4 | | | 3.8 | |
| Variable lease cost | | 0.2 | | | 0.2 | | | 0.1 | |
| Sublease income | | (0.9) | | | (1.0) | | | (1.2) | |
| Total lease cost | | $ | 15.1 | | | $ | 14.6 | | | $ | 14.0 | |
| | | | | | |
| Operating cash flow payments from operating leases | | $ | 10.8 | | | $ | 11.6 | | | $ | 12.3 | |
| Noncash ROU assets obtained in exchange for lease obligations | | $ | 3.9 | | | $ | 4.3 | | | $ | 9.9 | |
The leases have a remaining term of one to twelve years. The following table sets forth the Company's weighted-average remaining lease term and weighted-average discount rate at June 30, 2025, 2024 and 2023:
| | | | | | | | | | | | | | | | | | | | |
| | Years Ended June 30, |
| | 2025 | | 2024 | | 2023 |
| Weighted-average remaining lease term - operating leases | | 6.8 years | | 7.4 years | | 8.0 years |
| Weighted-average discount rate - operating leases | | 4.5 | % | | 4.4 | % | | 4.1 | % |
The following table sets forth the Company's ROU assets and lease liabilities at June 30, 2025 and June 30, 2024:
| | | | | | | | | | | | | | |
| | June 30, |
| ($ in millions) | | 2025 | | 2024 |
| Operating lease assets: | | | | |
| Other assets | | $ | 35.4 | | | $ | 39.0 | |
| Operating lease liabilities: | | | | |
| Accrued liabilities | | $ | 8.0 | | | $ | 8.8 | |
| Other liabilities | | 34.9 | | | 38.4 | |
| Total operating lease liabilities | | $ | 42.9 | | | $ | 47.2 | |
Minimum lease payments by fiscal year for operating leases expiring subsequent to June 30, 2025, are as follows:
| | | | | | | | |
| ($ in millions) | | Lease Payments |
| 2026 | | $ | 9.5 | |
| 2027 | | 8.7 | |
| 2028 | | 7.1 | |
| 2029 | | 5.6 | |
| 2030 | | 4.7 | |
| Thereafter | | 13.9 | |
| Total future minimum lease payments | | 49.5 | |
| Less: imputed interest | | 6.6 | |
| Total | | $ | 42.9 | |