Leases

12 Months Ended

Jun. 30, 2020

Upon adoption of the new lease accounting guidance, the Company recognized operating lease liabilities of approximately $15.2 million based on the present value of the remaining minimum rental payments using an incremental borrowing rate of approximately 4%. The Company also recognized corresponding operating lease ROU assets of approximately $14.8 million. The difference relates to adjustments made to operating lease ROU assets for prepaid rent and deferred rent that existed as of the date of adoption. These operating lease ROU assets relate to offices, warehouses and other premises leased under non-cancelable operating leases expiring through June 2026 and vehicles and certain equipment leased under non-cancelable operating leases expiring through August 2023.

Operating lease expense recognized and supplemental cash flow information related to operating leases for the years ended June 30, 2020 and 2019 were as follows (in thousands):



	Years Ended June 30,
	2020
Operating lease expense (including expense for lease agreements with related parties of $1,421 and $0 for the years ended June 30, 2020 and 2019, respectively)	$	6,993
Cash payments for operating leases (including payments to related parties of $1,443 and $0 for the years ended June 30, 2020 and 2019, respectively)	$	6,411
New operating lease assets obtained in exchange for operating lease liabilities	$	15,229

During the years ended June 30, 2020 and 2019, the Company's costs related to short-term lease arrangements for real estate and non-real estate assets were immaterial. Non-lease variable payments expensed in the years ended June 30, 2020, 2019 and 2018 were $1.3 million, $0.0 million and $0.0 million respectively.

As of June 30, 2020, the weighted average remaining lease term for operating leases was 4.6 and the weighted average discount rate was 3.5%. Maturities of operating lease liabilities under noncancelable operating lease arrangements as of June 30, 2020 were as follows (in thousands):



Fiscal Year:	Maturities of operating leases
2021	$	7,073
2022	5,696
2023	4,246
2024	4,221
2025	4,309
2026 and beyond	956
Total future lease payments	$	26,501
Less: Imputed interest	(2,089		)
Present value of operating lease liabilities	$	24,412

As of June 30, 2019, prior to the adoption of the new lease accounting guidance, future minimum payments under operating leases having initial or remaining non-cancelable lease terms in excess of one year were as follows (in thousands):



Fiscal Year:	Minimum lease payments
2020	$	6,582
2021	3,831
2022	2,439
2023	1,175
2024	1,166
2025 and beyond	2,279
Total minimum lease payments	$	17,472

As of June 30, 2020, commitments under short-term lease and financing lease arrangements were immaterial. As of June 30, 2020, operating and financing leases that have not yet commenced were immaterial.

The Company has entered into lease agreements with related parties. See Note 13, "Related Party Transactions," for a further discussion.