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Leases (Notes)

9 Months Ended

Mar. 31, 2021

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 renewal 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.

In January 2021, the Company entered into a 60 month lease for various office copier equipment terminating on December 31, 2025. The lease term is for a major part of the remaining economic life of the lease assets. Therefore, the lease has been classified as a finance 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	March 31, 2021		June 30, 2020
(In thousands)
Operating lease assets	Right-of-use operating lease assets	$	25,800	21,117
Finance lease assets	Property, plant and equipment, net	779		9
Total lease assets		$	26,579	$	21,126

Operating lease liabilities - current	Operating lease liabilities - current	6,036		5,854
Finance lease liabilities - current	Other current liabilities	193		—
Operating lease liabilities - noncurrent	Operating lease liabilities - noncurrent	19,770		15,628
Finance lease liabilities	Other long-term liabilities	593		9
Total lease liabilities		$	26,592	$	21,491

The components of lease expense are as follows:


		Three Months Ended March 31,				Nine Months Ended March 31,
	Classification	2021		2020		2021		2020
(In thousands)
Operating lease expense	General and administrative expenses and cost of goods sold	$	1,838	$	1,497	$	5,415	$	3,858
Finance lease expense:
Amortization of finance lease assets	General and administrative expenses	54		13		63		39
Interest on finance lease liabilities	Interest expense	13		—		13		1
Total lease expense		$	1,905	$	1,510	$	5,491	$	3,898


	March 31, 2021
(In thousands)	Operating Leases		Finance Leases
Maturities of lease liabilities are as follows:
2021	$	1,546	$	48
2022	5,899		193
2023	5,476		193
2024	5,184		193
2025	4,019		193
Thereafter	7,877		96
Total lease payments	30,001		916
Less: interest	(4,195)		(130)
Total lease obligations	$	25,806	$	786

Lease term and discount rate:


	March 31, 2021		June 30, 2020
Weighted-average remaining lease terms (in years):
Operating lease	7.5		8.3
Finance lease	4.7		0.2

Weighted-average discount rate:
Operating lease	5.01	%	4.50	%
Finance lease	5.01	%	4.50	%

Other Information:


	Nine Months Ended March 31,
(In thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,807	$	3,585
Operating cash flows from finance leases	$	13	$	1
Financing cash flows from finance leases	$	44	$	38

Leased assets obtained in exchange for new finance lease liabilities	$	—	$	—
Leased assets obtained in exchange for new operating lease liabilities	$	—	$	—

Leases

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


	Classification	March 31, 2021		June 30, 2020
(In thousands)
Operating lease assets	Right-of-use operating lease assets	$	25,800	21,117
Finance lease assets	Property, plant and equipment, net	779		9
Total lease assets		$	26,579	$	21,126

Operating lease liabilities - current	Operating lease liabilities - current	6,036		5,854
Finance lease liabilities - current	Other current liabilities	193		—
Operating lease liabilities - noncurrent	Operating lease liabilities - noncurrent	19,770		15,628
Finance lease liabilities	Other long-term liabilities	593		9
Total lease liabilities		$	26,592	$	21,491

The components of lease expense are as follows:


		Three Months Ended March 31,				Nine Months Ended March 31,
	Classification	2021		2020		2021		2020
(In thousands)
Operating lease expense	General and administrative expenses and cost of goods sold	$	1,838	$	1,497	$	5,415	$	3,858
Finance lease expense:
Amortization of finance lease assets	General and administrative expenses	54		13		63		39
Interest on finance lease liabilities	Interest expense	13		—		13		1
Total lease expense		$	1,905	$	1,510	$	5,491	$	3,898


	March 31, 2021
(In thousands)	Operating Leases		Finance Leases
Maturities of lease liabilities are as follows:
2021	$	1,546	$	48
2022	5,899		193
2023	5,476		193
2024	5,184		193
2025	4,019		193
Thereafter	7,877		96
Total lease payments	30,001		916
Less: interest	(4,195)		(130)
Total lease obligations	$	25,806	$	786

Lease term and discount rate:


	March 31, 2021		June 30, 2020
Weighted-average remaining lease terms (in years):
Operating lease	7.5		8.3
Finance lease	4.7		0.2

Weighted-average discount rate:
Operating lease	5.01	%	4.50	%
Finance lease	5.01	%	4.50	%

Other Information:


	Nine Months Ended March 31,
(In thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,807	$	3,585
Operating cash flows from finance leases	$	13	$	1
Financing cash flows from finance leases	$	44	$	38

Leased assets obtained in exchange for new finance lease liabilities	$	—	$	—
Leased assets obtained in exchange for new operating lease liabilities	$	—	$	—