Leases

9 Months Ended

Mar. 31, 2023

Note 5. Leases

The Company has operating leases for corporate offices and warehouse facilities worldwide. Additionally, the Company leases cars, copy machines and laptops that are considered operating leases. Some of the Company’s leases are non-cancellable operating lease agreements with various expiration dates through June 2035. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. In August 2022, the Company entered into a material lease agreement to extend the lease term at its office building and manufacturing facility in Madison, Wisconsin through 2035.

Operating lease costs were $2.4 million and $7.0 million during the three and nine months ended March 31, 2023, respectively, not including short-term operating lease costs of $0.1 million and $0.3 million, respectively. Operating lease costs were $2.3 million and $7.0 million during the three and nine months ended March 31, 2022, respectively, not including short-term operating lease costs of $0.1 million and $0.3 million, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was $2.5 million and $6.9 million during the three and nine months ended March 31, 2023, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $2.4 million and $7.3 million during the three and nine months ended March 31, 2022, respectively. Operating lease liabilities arising from obtaining operating right-of-use assets were $13.7 million and $1.5 million during the nine months ended March 31, 2023 and 2022, respectively.

Operating lease right-of-use assets and operating lease obligations consisted of the following (in thousands):


	March 31, 2023			June 30, 2022
Operating lease right-of-use assets
Balance at the beginning of period	$	16,798		$	22,522
Lease asset added		14,003			3,522
Amortization for the year		(6,393	)		(9,246	)
Balance at the end of period	$	24,408		$	16,798

Operating lease obligations
Balance at the beginning of period	$	19,020		$	25,609
Lease liability added		13,747			3,209
Repayment and interest accretion		(6,292	)		(9,798	)
Balance at the end of period	$	26,475		$	19,020

Current portion of operating lease obligations	$	4,009		$	8,567
Non-current portion of operating lease obligations		22,466			10,453

Maturities of operating lease liabilities as of March 31, 2023, are presented in the table below (dollars in thousands):


	Amount
2023 (remaining three months)	$	2,421
2024		3,069
2025		4,486
2026		3,409
2027		3,212
Thereafter		26,265
Total operating lease payments		42,862
Less: imputed interest		(16,387	)
Present value of operating lease liabilities	$	26,475
Weighted average remaining lease term (in years)		8.7
Weighted average discount rate		9.0	%