Company: TEAM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001650372-25-000068
Chunk: 247

Company: Atlassian Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 247
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 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, were $985.7 million. The net proceeds were used primarily to repay the Term Loan.The components of the Notes were as follows (in thousands, except percentage data):InstrumentExpected Remaining Term (years)Contractual Interest RateEffective Interest RateSeptember 30, 2025June 30, 20252029 Notes3.65.250 %5.55 %$500,000 $500,000 2034 Notes8.65.500 %5.71 %500,000 500,000 Unamortized debt discount and issuance costs(11,857)(12,316)Long-term debt$988,143 $987,684 The total estimated fair value of the Notes was approximately $1.05 billion and $1.03 billion as of September 30, 2025, and June 30, 2025, respectively. 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.

11. Commitments and Contingencies Noncancellable Purchase ObligationsThe Company has contractual commitments for services with third parties related to its cloud services platform, marketing-related contracts, and other services. These commitments are non-cancellable and expire within two to seven years, as disclosed in Note 11, “Commitments and Contingencies” of its Annual Report on Form 10-K for fiscal year 2025.Operating LeasesDuring the three months ended September 30, 2025, the Company recorded a $25.2 million impairment charge for operating lease right-of-use assets as a result of its facilities consolidation restructuring efforts. Refer to Note 14, “Restructuring,” for additional information.There were no other material changes to the Company’s operating lease arrangements and future lease payments under non-cancelable operating leases, including, obligations for leases that have not yet commenced, disclosed in Note 9, “Leases,” of the Company’s Annual Report on Form 10-K for fiscal year 2025.Supplemental information related to operating leases was as follows (in thousands): Three Months Ended September 30, 202520