OSI SYSTEMS INC Leases Disclosure
6.LEASES
The components of operating lease expense for the fiscal years ended June 30, 2024 and 2025 were as follows (in thousands):
| Fiscal Year Ended June 30, | |||||
2024 |
| 2025 | ||||
Operating lease cost | $ | 11,227 | $ | 12,342 | ||
Variable lease cost |
| 1,127 |
| 954 | ||
Short-term lease cost |
| 1,441 |
| 1,673 | ||
$ | 13,795 | $ | 14,969 | |||
Supplemental balance sheet assets and liabilities related to operating leases were as follows (dollar amounts in thousands):
| Balance Sheet Category |
| June 30, 2024 |
| June 30, 2025 |
| ||||
Operating lease ROU assets, net |
| $ | 30,040 | $ | 32,040 | |||||
Operating lease liabilities, current portion |
| $ | 9,706 | $ | 11,712 | |||||
Operating lease liabilities, long-term |
|
| 21,127 |
| 20,977 | |||||
Total operating lease liabilities | $ | 30,833 | $ | 32,689 | ||||||
Weighted average remaining lease term |
|
|
| 3.5 years | ||||||
Weighted average discount rate |
|
|
| 5.2 | % | |||||
Supplemental cash flow information related to operating leases for the year ended June 30, 2025 was as follows (in thousands):
Fiscal Year Ended June 30, | ||||||
| 2024 |
| 2025 | |||
Cash paid for operating lease liabilities | $ | 11,914 | $ | 13,047 | ||
ROU assets obtained in exchange for new lease obligations |
| 7,197 |
| 11,628 | ||
Maturities of operating lease liabilities at June 30, 2025 were as follows (in thousands):
| June 30, 2025 | ||
Less than one year | $ | 13,043 | |
1 – 2 years |
| 11,233 | |
2 – 3 years |
| 5,585 | |
3 – 4 years |
| 2,829 | |
4 – 5 years |
| 1,451 | |
Thereafter |
| 1,406 | |
| 35,547 | ||
Less: Imputed interest |
| (2,858) | |
Total lease liabilities | $ | 32,689 | |
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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.