Company: TEAM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001650372-25-000022
Chunk: 19

Company: Atlassian Corp
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 and unpaid interest to, but not including, the date of repurchase. The indenture governing the Notes also includes covenants (including certain limited covenants restricting the Company’s ability to incur certain liens and enter into certain sale and leaseback transactions), events of default, and other customary provisions. As of March 31, 2025, the Company was in compliance with all covenants associated with the Notes.The Company incurred debt discount and issuance costs of approximately $14.3 million in connection with the Notes offering, which were allocated on a pro rata basis to the 2029 Notes and 2034 Notes. The debt discount and issuance costs are amortized on an effective interest rate method to interest expense over the contractual term of the Notes. The proceeds from this offering, net of debt discounts and issuance costs, was $985.7 million. The components of the Notes were as follows (in thousands, except percentage data):InstrumentExpected Remaining Term (years)Contractual Interest RateEffective Interest RateMarch 31, 2025June 30, 20242029 Notes4.15.250 %5.55 %$500,000 $500,000 2034 Notes9.15.500 %5.71 %500,000 500,000 Unamortized debt discount and issuance costs(12,768)(14,089)Long-term debt$987,232 $985,911 The total estimated fair value of the Notes was approximately $1.0 billion as of March 31, 2025 and June 30, 2024. The estimated fair value of the Notes, which the Company deems Level 2 financial instruments, was determined based on quoted bid prices in an over-the-counter market on the last trading day of the reporting period.

10. Commitments and Contingencies Noncancellable Purchase ObligationsThe Company has contractual commitments for services with third-parties related to its cloud services platform and other services. These commitments are non-cancellable and expire within one to four years as disclosed in Note 12, “Commitments and Contingencies” of its Annual Report on Form 10-K for fiscal year 2024. During the nine months ended March 31, 2025, the Company entered into additional non-cancelable purchase commitments of approximately $157.3 million which expire within two to three years.

17

Operating LeasesThere were no material changes to the Company’s operating lease arrangements and future lease payments