Leases

12 Months Ended

Jun. 30, 2020

Note 5. Leases

The Company adopted ASC 842 – Leases using the current period adjustment method beginning on July 1, 2019. Under this approach, the Company did not restate its comparative amounts and recognized a right-of-use asset equal to the present value of the future lease payments. The Company elected to apply the practical expedient that allows for not reassessing: (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. The practical expedient applied to transition contracts that were previously identified as leases and elected to not recognize right-of-use assets and lease obligations for leases of low value assets.

The Company has operating leases for corporate offices and warehouse facilities worldwide. Additionally, the Company leases cars, copy machines and laptops through various operating leases. For some leases the Company has entered into non-cancelable operating lease agreements with various expiration dates through June 2025. 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.

Operating lease costs for the twelve months ended June 30, 2020 were $9.5 million, not including short-term operating lease costs, which were not material.

For the twelve months ended June 30, 2020, cash paid for amounts included in the measurement of operating lease liabilities was approximately $9.5 million. Operating lease liabilities arising from obtaining operating right-of-use assets totaled $5.2 million for the year ended June 30, 2020.

Operating lease right-of-use assets and operating lease obligation as of June 30, 2020 represented in the table below (in thousands):

	Operating Lease			Finance Lease (a)			Total
Operating lease right-of-use asset - initial recognition	$	30,578		$	—		$	30,578
Lease asset added after initial recognition		5,244			10			5,254
Amortization for the year		(7,175	)		(2	)		(7,177	)
Balance at June 30, 2020	$	28,647		$	8		$	28,655

Operating lease obligation - initial recognition	$	34,465		$	—		$	34,465
Lease liability added after initial recognition		5,244			10			5,254
Repayment and interest accretion		(7,312	)		(2	)		(7,314	)
Balance at June 30, 2020	$	32,397		$	8		$	32,405

Current portion of operating lease obligation	$	8,224		$	5		$	8,229
Noncurrent portion of operating lease obligation	$	24,173		$	3		$	24,176

(a)	Finance lease assets included in property and equipment

Maturities of operating lease liabilities as of June 30, 2020 are presented in the table below (in thousands):

Year Ending June 30,	Amount
2021	$	9,449
2022		9,130
2023		8,510
2024		5,812
2025		3,005
Total operating lease payments		35,906
Less: imputed interest		(3,501	)
Present value of operating lease liabilities	$	32,405
Weighted average remaining lease term (in years)		3.94
Weighted average discount rate		5.30	%