Company: TEAM
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001650372-25-000022
Chunk: 259

Company: Atlassian Corp
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 259
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 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.

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Operating LeasesThere were no 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 10, “Leases,” of the Company’s Annual Report on Form 10-K for fiscal year 2024.Supplemental information related to operating leases were as follows (in thousands): Three Months Ended March 31,Nine Months Ended March 31, 2025202420252024Operating lease costs$10,982 $10,462 $32,557 $31,068 Right-of-use assets obtained in exchange for new operating lease liabilities$248 $1,313 $21,037 $23,265 Legal ProceedingsFrom time to time, the Company is party to litigation and other legal proceedings