LEASES

3 Months Ended

Sep. 30, 2020

Leases [Abstract]

LEASES

LEASES

The Company leases office space, warehouse and distribution facilities, manufacturing equipment and vehicles primarily in North America and Europe. The Company determines if an arrangement is or contains a lease at inception. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company’s lease agreements generally do not contain residual value guarantees or material restrictive covenants. A limited number of lease agreements include rental payments adjusted periodically for inflation.

Some of the Company’s leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index changes are recorded as variable lease expense in the period incurred. The Company does not have any related party leases, and sublease transactions are de minimis.

The components of lease expenses for the three months ended September 30, 2020 were as follows:

	Three Months Ended
	September 30, 2020		September 30, 2019
Operating lease expenses	$	3,956	$	4,689
Finance lease expenses	185		301
Variable lease expenses	866		859
Short-term lease expenses	555		440
Total lease expenses	$	5,562	$	6,289

Supplemental balance sheet information related to leases was as follows:

Leases	Classification	September 30, 2020		June 30, 2020
Assets
Operating lease ROU assets, net	Operating lease right-of-use assets	$	89,397	$	88,165
Operating lease ROU assets, net	Assets held for sale	2,765		—
Finance lease ROU assets, net	Property, plant and equipment, net	435		691
Total leased assets		$	92,597	$	88,856
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	13,146	$	12,338
Operating	Liabilities related to assets held for sale	2,591		—
Finance	Current portion of long-term debt	228		308
Non-current
Operating	Operating lease liabilities, noncurrent portion	82,962		82,962
Finance	Long-term debt, less current portion	210		316
Total lease liabilities		$	99,137	$	95,924

Additional information related to leases is as follows:

	Three Months Ended
	September 30, 2020			September 30, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,359		$	3,735
Operating cash flows from finance leases	$	3		$	6
Financing cash flows from finance leases	$	85		$	119
ROU assets obtained in exchange for lease obligations (a):
Operating leases	$	7,766		$	86,213
Finance leases	$	15		$	948
Weighted average remaining lease term:
Operating leases	10.1 years			8.9 years
Finance leases	2.1 years			2.3 years
Weighted average discount rate:
Operating leases	3.0		%	3.2		%
Finance leases	2.6		%	2.2		%

(a) ROU assets obtained in exchange for lease obligations includes leases which commenced, were modified or terminated. The three months ended September 30, 2019 also includes $87,414 relating to the impact of the adoption of ASU 2016-02 effective July 1, 2019.

Maturities of lease liabilities as of September 30, 2020 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2021 (remainder of year)	$	10,570	$	173	$	10,743
2022	14,399		195		14,594
2023	13,460		82		13,542
2024	11,539		—		11,539
2025	10,162		—		10,162
Thereafter	57,367		—		57,367
Total lease payments	117,497		450		117,947
Less: Imputed interest	18,798		12		18,810
Total lease liabilities	$	98,699	$	438	$	99,137

Maturities of lease liabilities as of June 30, 2020 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2021	$	14,781	$	308	$	15,089
2022	13,798		205		14,003
2023	12,833		95		12,928
2024	10,941		18		10,959
2025	9,521		6		9,527
Thereafter	51,545		—		51,545
Total lease payments	113,419		632		114,051
Less: Imputed interest	18,119		8		18,127
Total lease liabilities	$	95,300	$	624	$	95,924

At September 30, 2020, the Company had an operating lease that had not yet commenced. Obligations under this lease are approximately $6,095, and the lease is expected to commence during the fiscal year ending June 30, 2021 with a lease term of 10 years, excluding renewal options.

LEASES

LEASES

The Company leases office space, warehouse and distribution facilities, manufacturing equipment and vehicles primarily in North America and Europe. The Company determines if an arrangement is or contains a lease at inception. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company’s lease agreements generally do not contain residual value guarantees or material restrictive covenants. A limited number of lease agreements include rental payments adjusted periodically for inflation.

Some of the Company’s leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index changes are recorded as variable lease expense in the period incurred. The Company does not have any related party leases, and sublease transactions are de minimis.

The components of lease expenses for the three months ended September 30, 2020 were as follows:

	Three Months Ended
	September 30, 2020		September 30, 2019
Operating lease expenses	$	3,956	$	4,689
Finance lease expenses	185		301
Variable lease expenses	866		859
Short-term lease expenses	555		440
Total lease expenses	$	5,562	$	6,289

Supplemental balance sheet information related to leases was as follows:

Leases	Classification	September 30, 2020		June 30, 2020
Assets
Operating lease ROU assets, net	Operating lease right-of-use assets	$	89,397	$	88,165
Operating lease ROU assets, net	Assets held for sale	2,765		—
Finance lease ROU assets, net	Property, plant and equipment, net	435		691
Total leased assets		$	92,597	$	88,856
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	13,146	$	12,338
Operating	Liabilities related to assets held for sale	2,591		—
Finance	Current portion of long-term debt	228		308
Non-current
Operating	Operating lease liabilities, noncurrent portion	82,962		82,962
Finance	Long-term debt, less current portion	210		316
Total lease liabilities		$	99,137	$	95,924

Additional information related to leases is as follows:

	Three Months Ended
	September 30, 2020			September 30, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,359		$	3,735
Operating cash flows from finance leases	$	3		$	6
Financing cash flows from finance leases	$	85		$	119
ROU assets obtained in exchange for lease obligations (a):
Operating leases	$	7,766		$	86,213
Finance leases	$	15		$	948
Weighted average remaining lease term:
Operating leases	10.1 years			8.9 years
Finance leases	2.1 years			2.3 years
Weighted average discount rate:
Operating leases	3.0		%	3.2		%
Finance leases	2.6		%	2.2		%

(a) ROU assets obtained in exchange for lease obligations includes leases which commenced, were modified or terminated. The three months ended September 30, 2019 also includes $87,414 relating to the impact of the adoption of ASU 2016-02 effective July 1, 2019.

Maturities of lease liabilities as of September 30, 2020 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2021 (remainder of year)	$	10,570	$	173	$	10,743
2022	14,399		195		14,594
2023	13,460		82		13,542
2024	11,539		—		11,539
2025	10,162		—		10,162
Thereafter	57,367		—		57,367
Total lease payments	117,497		450		117,947
Less: Imputed interest	18,798		12		18,810
Total lease liabilities	$	98,699	$	438	$	99,137

Maturities of lease liabilities as of June 30, 2020 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2021	$	14,781	$	308	$	15,089
2022	13,798		205		14,003
2023	12,833		95		12,928
2024	10,941		18		10,959
2025	9,521		6		9,527
Thereafter	51,545		—		51,545
Total lease payments	113,419		632		114,051
Less: Imputed interest	18,119		8		18,127
Total lease liabilities	$	95,300	$	624	$	95,924

At September 30, 2020, the Company had an operating lease that had not yet commenced. Obligations under this lease are approximately $6,095, and the lease is expected to commence during the fiscal year ending June 30, 2021 with a lease term of 10 years, excluding renewal options.