Leases

12 Months Ended

Jun. 30, 2023

Note 4. 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 terms at its administrative and manufacturing facilities in Madison, Wisconsin through 2035.

Operating lease costs during the years ended June 30, 2023, 2022, and 2021, were $9.4 million, $9.2 million and $9.1 million, respectively, not including short-term operating lease costs during the years ended June 30, 2023, 2022, and 2021, of $0.4 million, $0.4 million and $0.2 million, respectively. Cash paid for amounts included in the measurement of operating lease liabilities during the years ended June 30, 2023, 2022, and 2021, were $9.4 million, $9.8 million and $9.7 million, respectively.

Operating lease right-of-use assets and operating lease obligations are represented in the table below (in thousands):


	June 30, 2023			June 30, 2022
Beginning balance operating lease right-of-use assets	$	16,798		$	22,522
Lease assets added		17,157			3,522
Amortization for the year		(8,102	)		(9,246	)
Ending balance operating lease right-of-use assets	$	25,853		$	16,798

Beginning balance operating lease obligations	$	19,020		$	25,609
Lease liabilities added		16,834			3,209
Repayment and interest accretion		(8,101	)		(9,798	)
Ending balance operating lease obligations	$	27,753		$	19,020

Current portion of operating lease obligations	$	4,151		$	8,567
Noncurrent portion of operating lease obligations	$	23,602		$	10,453

Maturities of operating lease liabilities as of June 30, 2023, are presented in the table below (in thousands):


Year Ending June 30,	Amount
2024	$	4,394
2025		5,777
2026		3,798
2027		3,591
2028		3,347
Thereafter		23,308
Total operating lease payments		44,215
Less: imputed interest		(16,462	)
Present value of operating lease liabilities	$	27,753
Weighted average remaining lease term (in years)		8.4
Weighted average discount rate		9.6	%