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 2026. 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, 2021 and 2020 were $9.1 million and $9.5 million, respectively, not including short-term operating lease costs for the twelve months ended June 30, 2021 and 2020 of $0.2 million and $0.5 million, respectively.

For the twelve months ended June 30, 2021 and 2020, cash paid for amounts included in the measurement of operating lease liabilities was approximately $9.7 million and $9.5 million, respectively. Operating lease liabilities arising from obtaining operating right-of-use assets totaled $1.1 million and $5.2 million, respectively for the years ended June 30, 2021 and 2020.

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

	June 30, 2021			June 30, 2020
Beginning balance operating lease right-of-use asset (1)	$	28,647		$	30,578
Lease asset added		1,069			5,244
Amortization for the year		(7,194	)		(7,175	)
Ending balance operating lease right-of-use asset	$	22,522		$	28,647

Beginning balance operating lease obligation (1)	$	32,397		$	34,465
Lease liability added		1,069			5,244
Repayment and interest accretion		(7,857	)		(7,312	)
Ending balance operating lease obligation	$	25,609		$	32,397

Current portion of operating lease obligation	$	8,169		$	8,224
Noncurrent portion of operating lease obligation	$	17,441		$	24,173

Maturities of operating lease liabilities as of June 30, 2021 are presented in the table below (in thousands):

Year Ending June 30,	Amount
2022	$	9,564
2023		8,906
2024		6,148
2025		3,163
2026		5
Total operating lease payments		27,786
Less: imputed interest		(2,177	)
Present value of operating lease liabilities	$	25,609

The weighted average remaining lease term for the Company’s operating leases was 3.09 years and the weighted average discount rate was 5.39% as of June 30, 2021.