Leases

6 Months Ended

Dec. 31, 2022

Note 5. Leases

The Company has operating leases for corporate offices and warehouse facilities worldwide. Additionally, the Company leases cars, copy machines and laptops that are considered operating leases. Some of the Company’s leases are non-cancellable operating lease agreements with various expiration dates through June 2035. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. In August 2022, the Company entered into a material lease agreement to extend the lease term at its office building and manufacturing facility in Madison, Wisconsin through 2035.

Operating lease costs were $2.4 million and $4.7 million during the three and six months ended December 31, 2022, respectively, not including short-term operating lease costs of $0.1 million and $0.2 million, respectively. Operating lease costs were $2.4 million and $4.8 million during the three and six months ended December 31, 2021, respectively, not including short-term operating lease costs of $0.1 million and $0.2 million, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was $2.2 million and $4.4 million during the three and six months ended December 31, 2022, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $2.4 million and $4.8 million during the three and six months ended December 31, 2021, respectively. Operating lease liabilities arising from obtaining operating right-of-use assets were $13.2 million and $4.9 million, during the six months ended December 31, 2022 and 2021, respectively.

Operating lease right-of-use assets and operating lease obligations consisted of the following (in thousands):


	December 31, 2022			June 30, 2022
Operating lease right-of-use assets
Balance at the beginning of period	$	16,798		$	22,522
Lease asset added		13,187			3,522
Amortization for the year		(4,651	)		(9,246	)
Balance at the end of period	$	25,334		$	16,798

Operating lease obligations
Balance at the beginning of period	$	19,020		$	25,609
Lease liability added		13,000			3,209
Repayment and interest accretion		(4,443	)		(9,798	)
Balance at the end of period	$	27,577		$	19,020

Current portion of operating lease obligations	$	4,913		$	8,567
Non-current portion of operating lease obligations		22,664			10,453

Maturities of operating lease liabilities as of December 31, 2022, are presented in the table below (dollars in thousands):


	Amount
2023 (remaining six months)	$	4,793
2024		2,839
2025		4,344
2026		3,315
2027		3,175
Thereafter		26,263
Total operating lease payments		44,729
Less: imputed interest		(17,152	)
Present value of operating lease liabilities	$	27,577
Weighted average remaining lease term (in years)		8.7
Weighted average discount rate		8.8	%