Leases (Notes)

9 Months Ended

Apr. 30, 2025

Leases

The Company leases certain manufacturing facilities, warehouse and office spaces, and vehicles accounted for as operating leases. Lease terms typically range from one year to ten years. As of April 30, 2025, the Company did not have any finance leases.

Operating lease expense was $4,714 and $3,688 for the three months ended April 30, 2025 and 2024, respectively, and $13,988 and $11,557 for the nine months ended April 30, 2025 and 2024, respectively, which was recognized in either “Cost of goods sold” or “Selling, general and administrative” expenses in the condensed consolidated statements of income, based on the nature of the lease. Short-term lease expense, variable lease expenses, and sublease income were immaterial to the condensed consolidated statements of income for the three and nine months ended April 30, 2025 and 2024.

Supplemental cash flow information related to the Company's operating leases for the nine months ended April 30, 2025 and 2024 was as follows:


	Nine months ended April 30,
	2025		2024
Operating cash outflows from operating leases	$	13,780	$	12,441
Operating lease assets obtained in exchange for new operating lease liabilities (1)	30,964		8,903

(1) Includes new leases and remeasurements or modifications of existing leases.

BRADY CORP 10-Q