LEASES

9 Months Ended

Mar. 31, 2022

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.

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 and nine months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended				Nine Months Ended
	March 31, 2022		March 31, 2021		March 31, 2022		March 31, 2021
Operating lease expenses	$	4,155	$	4,129	$	11,572	$	12,290
Finance lease expenses	50		72		187		319
Variable lease expenses	129		247		838		1,204
Short-term lease expenses	813		458		2,855		1,701
Total lease expenses	$	5,147	$	4,906	$	15,452	$	15,514

Supplemental balance sheet information related to leases was as follows:

Leases	Classification	March 31, 2022		June 30, 2021
Assets
Operating lease ROU assets, net	Operating lease right-of-use assets, net	$	88,636	$	92,010
Finance lease ROU assets, net	Property, plant and equipment, net	466		547
Total leased assets		$	89,102	$	92,557
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	13,097	$	10,870
Finance	Current portion of long-term debt	182		229
Non-current
Operating	Operating lease liabilities, noncurrent portion	81,379		85,929
Finance	Long-term debt, less current portion	296		326
Total lease liabilities		$	94,954	$	97,354

Additional information related to leases is as follows:

	Nine Months Ended
	March 31, 2022			March 31, 2021
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11,632		$	12,954
Operating cash flows from finance leases	$	16		$	13
Financing cash flows from finance leases	$	182		$	285
ROU assets obtained in exchange for lease obligations:
Operating leases	$	4,100		$	18,349
Finance leases	$	251		$	671
ROU assets obtained in connection with an acquisition (See Note 4):
Operating leases	$	4,098		$	—
Weighted average remaining lease term:
Operating leases	9.0 years			10.0 years
Finance leases	4.2 years			4.1 years
Weighted average discount rate:
Operating leases	3.3		%	3.2		%
Finance leases	4.0		%	3.9		%

Maturities of lease liabilities as of March 31, 2022 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2022 (remainder of year)	$	3,427	$	56	$	3,483
2023	16,144		162		16,306
2024	14,498		80		14,578
2025	12,270		80		12,350
2026	11,581		67		11,648
Thereafter	53,640		78		53,718
Total lease payments	111,560		523		112,083
Less: Imputed interest	17,084		45		17,129
Total lease liabilities	$	94,476	$	478	$	94,954

On December 17, 2021, the Company entered into an operating lease in the United States that has not yet commenced. Obligations under this lease are approximately $41,638, and the lease is expected to commence during the fourth quarter of fiscal year ending June 30, 2022 with a lease term of 10.5 years, excluding one renewal option.

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.

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 and nine months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended				Nine Months Ended
	March 31, 2022		March 31, 2021		March 31, 2022		March 31, 2021
Operating lease expenses	$	4,155	$	4,129	$	11,572	$	12,290
Finance lease expenses	50		72		187		319
Variable lease expenses	129		247		838		1,204
Short-term lease expenses	813		458		2,855		1,701
Total lease expenses	$	5,147	$	4,906	$	15,452	$	15,514

Supplemental balance sheet information related to leases was as follows:

Leases	Classification	March 31, 2022		June 30, 2021
Assets
Operating lease ROU assets, net	Operating lease right-of-use assets, net	$	88,636	$	92,010
Finance lease ROU assets, net	Property, plant and equipment, net	466		547
Total leased assets		$	89,102	$	92,557
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	13,097	$	10,870
Finance	Current portion of long-term debt	182		229
Non-current
Operating	Operating lease liabilities, noncurrent portion	81,379		85,929
Finance	Long-term debt, less current portion	296		326
Total lease liabilities		$	94,954	$	97,354

Additional information related to leases is as follows:

	Nine Months Ended
	March 31, 2022			March 31, 2021
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11,632		$	12,954
Operating cash flows from finance leases	$	16		$	13
Financing cash flows from finance leases	$	182		$	285
ROU assets obtained in exchange for lease obligations:
Operating leases	$	4,100		$	18,349
Finance leases	$	251		$	671
ROU assets obtained in connection with an acquisition (See Note 4):
Operating leases	$	4,098		$	—
Weighted average remaining lease term:
Operating leases	9.0 years			10.0 years
Finance leases	4.2 years			4.1 years
Weighted average discount rate:
Operating leases	3.3		%	3.2		%
Finance leases	4.0		%	3.9		%

Maturities of lease liabilities as of March 31, 2022 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2022 (remainder of year)	$	3,427	$	56	$	3,483
2023	16,144		162		16,306
2024	14,498		80		14,578
2025	12,270		80		12,350
2026	11,581		67		11,648
Thereafter	53,640		78		53,718
Total lease payments	111,560		523		112,083
Less: Imputed interest	17,084		45		17,129
Total lease liabilities	$	94,476	$	478	$	94,954

On December 17, 2021, the Company entered into an operating lease in the United States that has not yet commenced. Obligations under this lease are approximately $41,638, and the lease is expected to commence during the fourth quarter of fiscal year ending June 30, 2022 with a lease term of 10.5 years, excluding one renewal option.