LEASES

6 Months Ended

Dec. 31, 2021

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, 2021 were as follows:

	Three Months Ended				Six Months Ended
	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Operating lease expenses	$	3,665	$	4,205	$	7,417	$	8,161
Finance lease expenses	67		61		137		246
Variable lease expenses	306		91		709		957
Short-term lease expenses	677		687		2,042		1,243
Total lease expenses	$	4,715	$	5,044	$	10,305	$	10,607

Supplemental balance sheet information related to leases was as follows:

Leases	Classification	December 31, 2021		June 30, 2021
Assets
Operating lease ROU assets, net	Operating lease right-of-use assets	$	91,739	$	92,010
Finance lease ROU assets, net	Property, plant and equipment, net	519		547
Total leased assets		$	92,258	$	92,557
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	12,437	$	10,870
Finance	Current portion of long-term debt	206		229
Non-current
Operating	Operating lease liabilities, noncurrent portion	84,219		85,929
Finance	Long-term debt, less current portion	324		326
Total lease liabilities		$	97,186	$	97,354

Additional information related to leases is as follows:

	Six Months Ended
	December 31, 2021			December 31, 2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,560		$	8,569
Operating cash flows from finance leases	$	10		$	6
Financing cash flows from finance leases	$	123		$	201
ROU assets obtained in exchange for lease obligations:
Operating leases	$	3,182		$	12,745
Finance leases	$	116		$	371
ROU assets obtained in connection with an acquisition (See Note 4):
Operating leases	$	4,098		$	—
Weighted average remaining lease term:
Operating leases	9.5 years			10.0 years
Finance leases	4.2 years			1.8 years
Weighted average discount rate:
Operating leases	3.2		%	3.1		%
Finance leases	3.9		%	2.4		%

Maturities of lease liabilities as of December 31, 2021 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2022 (remainder of year)	$	7,007	$	113	$	7,120
2023	15,932		162		16,094
2024	14,258		80		14,338
2025	12,092		80		12,172
2026	11,463		67		11,530
Thereafter	53,779		78		53,857
Total lease payments	114,531		580		115,111
Less: Imputed interest	17,875		50		17,925
Total lease liabilities	$	96,656	$	530	$	97,186

On December 17, 2021, the Company entered into an operating lease in the United States that has not yet commenced. Obligations under this lease are approximately $41,638, and the lease is expected to commence during the fourth quarter of fiscal year ending June 30, 2022 with a lease term of 10.5 years, excluding one renewal option.

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, 2021 were as follows:

	Three Months Ended				Six Months Ended
	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Operating lease expenses	$	3,665	$	4,205	$	7,417	$	8,161
Finance lease expenses	67		61		137		246
Variable lease expenses	306		91		709		957
Short-term lease expenses	677		687		2,042		1,243
Total lease expenses	$	4,715	$	5,044	$	10,305	$	10,607

Supplemental balance sheet information related to leases was as follows:

Leases	Classification	December 31, 2021		June 30, 2021
Assets
Operating lease ROU assets, net	Operating lease right-of-use assets	$	91,739	$	92,010
Finance lease ROU assets, net	Property, plant and equipment, net	519		547
Total leased assets		$	92,258	$	92,557
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	12,437	$	10,870
Finance	Current portion of long-term debt	206		229
Non-current
Operating	Operating lease liabilities, noncurrent portion	84,219		85,929
Finance	Long-term debt, less current portion	324		326
Total lease liabilities		$	97,186	$	97,354

Additional information related to leases is as follows:

	Six Months Ended
	December 31, 2021			December 31, 2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,560		$	8,569
Operating cash flows from finance leases	$	10		$	6
Financing cash flows from finance leases	$	123		$	201
ROU assets obtained in exchange for lease obligations:
Operating leases	$	3,182		$	12,745
Finance leases	$	116		$	371
ROU assets obtained in connection with an acquisition (See Note 4):
Operating leases	$	4,098		$	—
Weighted average remaining lease term:
Operating leases	9.5 years			10.0 years
Finance leases	4.2 years			1.8 years
Weighted average discount rate:
Operating leases	3.2		%	3.1		%
Finance leases	3.9		%	2.4		%

Maturities of lease liabilities as of December 31, 2021 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2022 (remainder of year)	$	7,007	$	113	$	7,120
2023	15,932		162		16,094
2024	14,258		80		14,338
2025	12,092		80		12,172
2026	11,463		67		11,530
Thereafter	53,779		78		53,857
Total lease payments	114,531		580		115,111
Less: Imputed interest	17,875		50		17,925
Total lease liabilities	$	96,656	$	530	$	97,186

On December 17, 2021, the Company entered into an operating lease in the United States that has not yet commenced. Obligations under this lease are approximately $41,638, and the lease is expected to commence during the fourth quarter of fiscal year ending June 30, 2022 with a lease term of 10.5 years, excluding one renewal option.