LEASES

6 Months Ended

Dec. 31, 2020

Leases [Abstract]

LEASES

LEASES

The Company leases office space, warehouse and distribution facilities, manufacturing equipment and vehicles primarily in North America and Europe. The Company determines if an arrangement is or contains a lease at inception. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company’s lease agreements generally do not contain residual value guarantees or material restrictive covenants. A limited number of lease agreements include rental payments adjusted periodically for inflation.

Some of the Company’s leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index changes are recorded as variable lease expense in the period incurred. The Company does not have any related party leases, and sublease transactions are de minimis.

The components of lease expenses for the three and six months ended December 31, 2020 were as follows:

	Three Months Ended				Six Months Ended
	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019
Operating lease expenses	$	4,205	$	4,800	$	8,161	$	9,489
Finance lease expenses	61		188		246		489
Variable lease expenses	91		381		957		1,240
Short-term lease expenses	687		419		1,243		859
Total lease expenses	$	5,044	$	5,788	$	10,607	$	12,077

Supplemental balance sheet information related to leases was as follows:

Leases	Classification	December 31, 2020		June 30, 2020
Assets
Operating lease ROU assets, net	Operating lease right-of-use assets	$	89,971	$	88,165
Operating lease ROU assets, net	Assets held for sale	5,607		—
Finance lease ROU assets, net	Property, plant and equipment, net	386		691
Finance lease ROU assets, net	Assets held for sale	356		—
Total leased assets		$	96,320	$	88,856
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	11,584	$	12,338
Operating	Liabilities related to assets held for sale	5,311		—
Finance	Current portion of long-term debt	239		308
Finance	Liabilities related to assets held for sale	296		—
Non-current
Operating	Operating lease liabilities, noncurrent portion	83,268		82,962
Finance	Long-term debt, less current portion	162		316
Total lease liabilities		$	100,860	$	95,924

Additional information related to leases is as follows:

	Six Months Ended
	December 31, 2020			December 31, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,569		$	8,113
Operating cash flows from finance leases	$	6		$	12
Financing cash flows from finance leases	$	201		$	244
ROU assets obtained in exchange for lease obligations (a):
Operating leases	$	12,745		$	92,640
Finance leases	$	371		$	1,131
Weighted average remaining lease term:
Operating leases	10.0 years			8.6 years
Finance leases	1.8 years			2.4 years
Weighted average discount rate:
Operating leases	3.1		%	2.7		%
Finance leases	2.4		%	3.1		%

(a) ROU assets obtained in exchange for lease obligations includes leases which commenced, were modified or terminated. The balance as of December 31, 2019 also included $87,414 relating to the impact of the adoption of ASU 2016-02 effective July 1, 2019.

Maturities of lease liabilities as of December 31, 2020 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2021 (remainder of year)	$	7,471	$	222	$	7,693
2022	15,054		377		15,431
2023	14,139		113		14,252
2024	12,129		—		12,129
2025	10,823		—		10,823
Thereafter	59,500		—		59,500
Total lease payments	119,116		712		119,828
Less: Imputed interest	18,953		15		18,968
Total lease liabilities	$	100,163	$	697	$	100,860

Maturities of lease liabilities as of June 30, 2020 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2021	$	14,781	$	308	$	15,089
2022	13,798		205		14,003
2023	12,833		95		12,928
2024	10,941		18		10,959
2025	9,521		6		9,527
Thereafter	51,545		—		51,545
Total lease payments	113,419		632		114,051
Less: Imputed interest	18,119		8		18,127
Total lease liabilities	$	95,300	$	624	$	95,924

At December 31, 2020, the Company had an operating lease that had not yet commenced. Obligations under this lease are approximately $6,095, and the lease is expected to commence during the fiscal year ending June 30, 2021 with a lease term of 10 years, excluding renewal options.

LEASES

LEASES

The Company leases office space, warehouse and distribution facilities, manufacturing equipment and vehicles primarily in North America and Europe. The Company determines if an arrangement is or contains a lease at inception. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company’s lease agreements generally do not contain residual value guarantees or material restrictive covenants. A limited number of lease agreements include rental payments adjusted periodically for inflation.

Some of the Company’s leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index changes are recorded as variable lease expense in the period incurred. The Company does not have any related party leases, and sublease transactions are de minimis.

The components of lease expenses for the three and six months ended December 31, 2020 were as follows:

	Three Months Ended				Six Months Ended
	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019
Operating lease expenses	$	4,205	$	4,800	$	8,161	$	9,489
Finance lease expenses	61		188		246		489
Variable lease expenses	91		381		957		1,240
Short-term lease expenses	687		419		1,243		859
Total lease expenses	$	5,044	$	5,788	$	10,607	$	12,077

Supplemental balance sheet information related to leases was as follows:

Leases	Classification	December 31, 2020		June 30, 2020
Assets
Operating lease ROU assets, net	Operating lease right-of-use assets	$	89,971	$	88,165
Operating lease ROU assets, net	Assets held for sale	5,607		—
Finance lease ROU assets, net	Property, plant and equipment, net	386		691
Finance lease ROU assets, net	Assets held for sale	356		—
Total leased assets		$	96,320	$	88,856
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	11,584	$	12,338
Operating	Liabilities related to assets held for sale	5,311		—
Finance	Current portion of long-term debt	239		308
Finance	Liabilities related to assets held for sale	296		—
Non-current
Operating	Operating lease liabilities, noncurrent portion	83,268		82,962
Finance	Long-term debt, less current portion	162		316
Total lease liabilities		$	100,860	$	95,924

Additional information related to leases is as follows:

	Six Months Ended
	December 31, 2020			December 31, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,569		$	8,113
Operating cash flows from finance leases	$	6		$	12
Financing cash flows from finance leases	$	201		$	244
ROU assets obtained in exchange for lease obligations (a):
Operating leases	$	12,745		$	92,640
Finance leases	$	371		$	1,131
Weighted average remaining lease term:
Operating leases	10.0 years			8.6 years
Finance leases	1.8 years			2.4 years
Weighted average discount rate:
Operating leases	3.1		%	2.7		%
Finance leases	2.4		%	3.1		%

(a) ROU assets obtained in exchange for lease obligations includes leases which commenced, were modified or terminated. The balance as of December 31, 2019 also included $87,414 relating to the impact of the adoption of ASU 2016-02 effective July 1, 2019.

Maturities of lease liabilities as of December 31, 2020 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2021 (remainder of year)	$	7,471	$	222	$	7,693
2022	15,054		377		15,431
2023	14,139		113		14,252
2024	12,129		—		12,129
2025	10,823		—		10,823
Thereafter	59,500		—		59,500
Total lease payments	119,116		712		119,828
Less: Imputed interest	18,953		15		18,968
Total lease liabilities	$	100,163	$	697	$	100,860

Maturities of lease liabilities as of June 30, 2020 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2021	$	14,781	$	308	$	15,089
2022	13,798		205		14,003
2023	12,833		95		12,928
2024	10,941		18		10,959
2025	9,521		6		9,527
Thereafter	51,545		—		51,545
Total lease payments	113,419		632		114,051
Less: Imputed interest	18,119		8		18,127
Total lease liabilities	$	95,300	$	624	$	95,924

At December 31, 2020, the Company had an operating lease that had not yet commenced. Obligations under this lease are approximately $6,095, and the lease is expected to commence during the fiscal year ending June 30, 2021 with a lease term of 10 years, excluding renewal options.