The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in selling, distribution, and administrative expense in the statements of consolidated income. Operating lease costs and short-term lease costs were $66,745 and $1,021, respectively, in 2026 and $47,591 and $14,458, respectively, in 2025. Variable lease costs and sublease income were not material.


June 30,	2026		2025
Operating lease assets, net	$	213,199	$	188,654

Operating lease liabilities
Other current liabilities	$	52,913	$	39,776
Other liabilities	168,231		158,544
Total operating lease liabilities	$	221,144	$	198,320


June 30,	2026		2025
Weighted average remaining lease term (years)	5.7		6.6
Weighted average incremental borrowing rate	5.34	%	5.01	%


Year Ended June 30,	2026		2025
Cash paid for operating leases	$	65,558	$	45,919
Right of use assets obtained in exchange for new operating lease liabilities	36,228		98,196

The table below summarizes the aggregate maturities of liabilities pertaining to operating leases with terms greater than one year for each of the next five years:


Year Ended June 30,	Maturity of Operating Lease Liabilities
2027	$	62,171
2028	51,477
2029	41,236
2030	28,754
2031	20,705
Thereafter	58,482
Total lease payments	262,825
Less interest	41,681
Present value of lease liabilities	$	221,144

The Company maintains lease agreements for many of the operating facilities of businesses it acquires from previous owners. In many cases, the previous owners of the business acquired become employees of the Company and occupy management positions within those businesses. The payments under lease agreements of this nature totaled $2,537 in 2026, $2,100 in 2025, and $2,250 in 2024.