Leases

6 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

5. Leases

Substantially all the Company’s leases are classified as operating leases and are predominately related to real property for distribution centers, office space, and integration facilities with a lease term of up to 15 years. The Company’s equipment leases are primarily for automobiles and equipment and are not material to the consolidated financial statements.

The components of lease cost related to the Company’s operating leases were as follows (in thousands):

	Second Quarters Ended				Six Months Ended
	December 31,		January 1,		December 31,		January 1,
	2022		2022		2022		2022
Operating lease cost	$	16,917	$	17,129	$	33,482	$	34,975
Variable lease cost		5,715		6,733		12,028		12,851
Total lease cost	$	22,632	$	23,862	$	45,510	$	47,826

Future minimum operating lease payments as of December 31, 2022, are as follows (in thousands):

Fiscal Year
Remainder of fiscal 2023	$	32,757
2024		53,201
2025		42,838
2026		33,816
2027		22,376
Thereafter		114,900
Total future operating lease payments		299,888
Total imputed interest on operating lease liabilities		(47,958)
Total operating lease liabilities	$	251,930

Other information pertaining to operating leases consists of the following:

	Six Months Ended
	December 31,		January 1,
	2022		2022
Operating Lease Term and Discount Rate
Weighted-average remaining lease term in years	8.4		8.9
Weighted-average discount rate	3.8	%	3.8	%

Supplemental cash flow information related to the Company’s operating leases was as follows (in thousands):

	Six Months Ended
	December 31,		January 1,
	2022		2022
Supplemental Cash Flow Information:
Cash paid for operating lease liabilities	$	28,463	$	29,456
Operating lease assets obtained from new operating lease liabilities		29,640		13,478