Leases (Notes)

3 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

Leases

The Company has entered into leases for building facilities, vehicles and other equipment. The Company’s leases have remaining contractual terms of up to 10 years, some of which have options to extend the lease for up to 10 years. For purposes of calculating operating lease liabilities, lease terms are deemed not to include options to extend the lease termination until it is reasonably certain that the Company will exercise that option. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

In September 2020, the Company entered a new 89 month lease for its western U.S. distribution center. The lease terminates on March 31, 2028, with a one 5 year renewal option. The lease has been classified as an operating lease and included in the lease tables and the related disclosures below.

Supplemental unaudited consolidated balance sheet information related to leases is as follows:

	Classification	September 30, 2020		June 30, 2020
(In thousands)
Operating lease assets	Right-of-use operating lease assets	$	29,025	21,117
Finance lease assets	Property, plant and equipment, net	—		9
Total lease assets		$	29,025	$	21,126
Operating lease liabilities - current	Operating lease liabilities - current	$	7,631	5,854
Operating lease liabilities - noncurrent	Operating lease liabilities - noncurrent	21,818		15,628
Finance lease liabilities	Other long-term liabilities	—		9
Total lease liabilities		$	29,449	$	21,491

The components of lease expense are as follows:

		Three Months Ended September 30,
	Classification	2020		2019
(In thousands)
Operating lease expense	General and administrative expenses and cost of goods sold	$	1,625	$	1,109
Finance lease expense:
Amortization of finance lease assets	General and administrative expenses	9		13
Interest on finance lease liabilities	Interest expense	—		1
Total lease expense		$	1,634	$	1,123

	September 30, 2020
(In thousands)	Operating Leases		Finance Leases
Maturities of lease liabilities are as follows:
2021	$	6,056	$	—
2022	5,901		—
2023	5,376		—
2024	5,112		—
2025	3,971		—
Thereafter	7,873		—
Total lease payments	34,289		—
Less: interest	(4,840)		—
Total lease obligations	$	29,449	$	—

Lease term and discount rate:

	September 30, 2020		June 30, 2020
Weighted-average remaining lease terms (in years):
Operating lease	8.0		8.3
Finance lease	0.0		0.2
Weighted-average discount rate:
Operating lease	5.01	%	4.50	%
Finance lease	—	%	4.50	%

    Other Information:

	Three Months Ended September 30,
(In thousands)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,593	$	1,041
Operating cash flows from finance leases	$	—	$	1
Financing cash flows from finance leases	$	9	$	13
Leased assets obtained in exchange for new finance lease liabilities	$	—	$	—
Leased assets obtained in exchange for new operating lease liabilities	$	—	$	—

Leases

Leases

The Company has entered into leases for building facilities, vehicles and other equipment. The Company’s leases have remaining contractual terms of up to 10 years, some of which have options to extend the lease for up to 10 years. For purposes of calculating operating lease liabilities, lease terms are deemed not to include options to extend the lease termination until it is reasonably certain that the Company will exercise that option. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

In September 2020, the Company entered a new 89 month lease for its western U.S. distribution center. The lease terminates on March 31, 2028, with a one 5 year renewal option. The lease has been classified as an operating lease and included in the lease tables and the related disclosures below.

Supplemental unaudited consolidated balance sheet information related to leases is as follows:

	Classification	September 30, 2020		June 30, 2020
(In thousands)
Operating lease assets	Right-of-use operating lease assets	$	29,025	21,117
Finance lease assets	Property, plant and equipment, net	—		9
Total lease assets		$	29,025	$	21,126
Operating lease liabilities - current	Operating lease liabilities - current	$	7,631	5,854
Operating lease liabilities - noncurrent	Operating lease liabilities - noncurrent	21,818		15,628
Finance lease liabilities	Other long-term liabilities	—		9
Total lease liabilities		$	29,449	$	21,491

The components of lease expense are as follows:

		Three Months Ended September 30,
	Classification	2020		2019
(In thousands)
Operating lease expense	General and administrative expenses and cost of goods sold	$	1,625	$	1,109
Finance lease expense:
Amortization of finance lease assets	General and administrative expenses	9		13
Interest on finance lease liabilities	Interest expense	—		1
Total lease expense		$	1,634	$	1,123

	September 30, 2020
(In thousands)	Operating Leases		Finance Leases
Maturities of lease liabilities are as follows:
2021	$	6,056	$	—
2022	5,901		—
2023	5,376		—
2024	5,112		—
2025	3,971		—
Thereafter	7,873		—
Total lease payments	34,289		—
Less: interest	(4,840)		—
Total lease obligations	$	29,449	$	—

Lease term and discount rate:

	September 30, 2020		June 30, 2020
Weighted-average remaining lease terms (in years):
Operating lease	8.0		8.3
Finance lease	0.0		0.2
Weighted-average discount rate:
Operating lease	5.01	%	4.50	%
Finance lease	—	%	4.50	%

    Other Information:

	Three Months Ended September 30,
(In thousands)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,593	$	1,041
Operating cash flows from finance leases	$	—	$	1
Financing cash flows from finance leases	$	9	$	13
Leased assets obtained in exchange for new finance lease liabilities	$	—	$	—
Leased assets obtained in exchange for new operating lease liabilities	$	—	$	—