Leases

12 Months Ended

Jun. 30, 2023

We have operating leases with initial noncancelable lease terms in excess of one year covering the rental of various facilities and equipment. Certain of these leases contain renewal options and some provide options to purchase during the lease term. Our operating leases include leases for real estate for some of our office and manufacturing facilities as well as manufacturing and non-manufacturing equipment used in our business. The remaining lease terms for these operating leases range from 1 year to 9 years.

We have finance leases with initial noncancelable lease terms in excess of one year covering the rental of various facilities and equipment. Certain of these leases contain renewal options and some provide options to purchase during the lease term. These leases are generally for non-manufacturing equipment used in our business and warehouse facilities. The remaining lease terms for these finance leases range from 1 year to 2 years.

As of June 30, 2023 and 2022, the weighted-average discount rate of our operating leases was 3.6% and 2.6%, respectively. As of June 30, 2023 and 2022, the weighted-average discount rate of our finance leases was 1.7% and 1.8%, respectively.

The components of lease expense in each of the years ended June 30 have been provided as follows:


	2023		2022		2021
Operating lease cost in Cost of Sales and Selling, General and Administrative Expenses	$	9,702	$	9,246	$	8,300
Finance lease cost:
Amortization of assets in Cost of Sales and Selling, General and Administrative Expenses	$	2,228	$	2,413	$	1,571
Interest on lease liabilities in Other, Net	97		153		156
Total finance lease cost	$	2,325	$	2,566	$	1,727
Short-term lease cost in Cost of Sales and Selling, General and Administrative Expenses	4,362		4,639		2,652
Total net lease cost	$	16,389	$	16,451	$	12,679

Supplemental balance sheet information related to leases at June 30 is as follows:


	2023		2022
Operating Leases
Operating Lease Right-Of-Use Assets	$	24,743	$	28,177

Current operating lease liabilities in Accrued Liabilities	$	8,821	$	8,874
Noncurrent Operating Lease Liabilities	16,967		20,494
Total operating lease liabilities	$	25,788	$	29,368

Finance Leases


Finance lease right-of-use assets in Property, Plant and Equipment-Net	$	4,682	$	7,217

Current finance lease liabilities in Accrued Liabilities	$	1,944	$	2,542
Noncurrent finance lease liabilities in Other Noncurrent Liabilities	2,255		4,320
Total finance lease liabilities	$	4,199	$	6,862

Supplemental cash flow information related to leases in each of the years ended June 30 is as follows:


	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	9,848	$	9,603	$	8,501
Operating cash flows from finance leases	$	97	$	153	$	156
Financing cash flows from finance leases	$	2,334	$	2,655	$	2,002

Supplemental noncash information on operating lease liabilities arising from obtaining right-of-use assets	$	5,698	$	16,617	$	7,005

Supplemental noncash information on finance lease liabilities arising from obtaining right-of-use assets	$	—	$	334	$	9,035

As of June 30, 2023, the maturities of lease liabilities were as follows:


	Operating Leases		Finance Leases
2024	$	9,585	$	2,000
2025	7,694		1,973
2026	6,154		306
2027	3,230		—
2028	408		—
Thereafter	240		—
Total minimum payments	$	27,311	$	4,279
Less amount representing interest	(1,523)		(80)
Present value of lease obligations	$	25,788	$	4,199

As of June 30, 2023 and 2022, the weighted-average remaining term of our operating leases was 3.4 years and 4.0 years, respectively. As of June 30, 2023 and 2022, the weighted-average remaining term of our finance leases was 2.1 years and 3.0 years, respectively.