Company: TEAM
Filing Date: 2025-08-15
Form Type: 10-K
Source: 0001650372-25-000036
Chunk: 141

Company: Atlassian Corp
Filing Date: 2025-08-15
Form: 10-K
Item: Item 8
Chunk 141
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,334 $63,228 Weighted average remaining lease term (in years)567Weighted average discount rate3.1 %2.9 %2.5 %Supplemental cash flow information related to operating leases were as follows (in thousands):Fiscal Year Ended June 30, 202520242023Cash payments for operating leases$52,981 $49,803 $41,493 Right-of-use assets obtained in exchange for new operating lease liabilities$34,717 $23,265 $3,580 Future lease payments under non-cancelable operating leases with initial lease terms in excess of one year included in the Company’s lease liabilities as of June 30, 2025 were as follows (in thousands):Fiscal years:Operating Lease Payments2026$57,056 202757,224 202856,667 202946,237 203016,188 Thereafter38,743 Total future operating lease payments272,115 Less: imputed interest(20,468)Total lease liability balance$251,647 During fiscal year 2023, in addition to operating lease costs disclosed above, the Company recorded an impairment charge of $52.7 million in aggregate for operating lease right-of-use assets as part of the Company’s lease consolidation efforts.

The Company entered into an Agreement for Lease (the “AFL”) for the Australian HQ Property in March 2022. Following the completion of the development of the Australian HQ Property, the AFL requires the Company to enter into a lease agreement for the planned headquarters office space. The lease is expected to commence in fiscal year 2027 and will continue for fifteen years, with the Company’s option to extend the term for up to two additional ten-year periods. Future lease payments are approximately $912.3 million as of June 30, 2025, for the initial term of fifteen years. Please refer to Note 4, “Investments,” for details of the transaction. 

10. DebtCredit FacilityIn August 2024, the Company’s principal U.S. operating subsidiary, Atlassian US, Inc., entered into an amended and restated credit agreement (the “2024 Credit Agreement”) which eliminated a term loan facility and provides for a $750 million senior unsecured revolving credit facility (the “2024 Credit Facility”). The 2024 Credit Agreement replaced the Company’s prior credit agreement entered into in October 2020 (“2020 Credit Agreement”) which provided for