LEASES

12 Months Ended

Jun. 30, 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. A limited number of lease agreements include rental payments adjusted periodically for inflation.

Certain 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 fiscal years ended June 30, 2022, 2021 and 2020 were as follows:

	Fiscal Year Ended
	2022		2021		2020
Operating lease expenses (a)	$	15,911	$	16,403	$	18,981
Finance lease expenses (a)	251		391		1,197
Variable lease expenses	1,010		1,423		2,570
Short-term lease expenses	3,394		2,387		1,723
Total lease expenses	$	20,566	$	20,604	$	24,471

(a) For the fiscal year ended June 30, 2020, operating lease expenses and finance lease expenses included $1,505 and $251, respectively, of ROU asset impairment charges associated with the Company’s ongoing productivity and transformation initiatives. Of this amount, $929 was recognized as a component of long-lived asset and intangibles impairment on the Consolidated Statement of Operations with the remainder recognized as a component of cost of sales.

Supplemental balance sheet information related to leases is as follows:

Leases	Classification	June 30, 2022		June 30, 2021
Assets
Operating lease ROU assets	Operating lease right-of-use assets	$	114,691	$	92,010
Finance lease ROU assets, net	Property, plant and equipment, net	413		547
Total leased assets		$	115,104	$	92,557
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	13,154	$	10,870
Finance	Current portion of long-term debt	149		229
Non-current
Operating	Operating lease liabilities, noncurrent portion	107,481		85,929
Finance	Long-term debt, less current portion	278		326
Total lease liabilities		$	121,062	$	97,354

Additional information related to leases is as follows:

	Fiscal Year Ended
	2022			2021			2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15,462		$	16,738		$	17,290
Operating cash flows from finance leases	$	20		$	17		$	26
Financing cash flows from finance leases	$	226		$	338		$	543
ROU assets obtained in exchange for lease obligations (b):
Operating leases	$	35,337		$	25,446		$	104,915
Finance leases	$	116		$	690		$	1,475
ROU assets obtained in connection with an acquisition (See Note 4):
Operating leases	$	4,098		$	—		$	—
Weighted average remaining lease term:
Operating leases	9.3 years			9.8 years			10.0 years
Finance leases	4.1 years			4.0 years			2.5 years
Weighted average discount rate:
Operating leases	3.9		%	3.3		%	3.0		%
Finance leases	4.1		%	3.9		%	2.3		%

(b) ROU assets obtained in exchange for lease obligations includes the impact of the adoption of ASU 2016-02 effective July 1, 2019 (see Note 2) and leases which commenced, were modified or terminated during the fiscal year ended June 30, 2020.

Maturities of lease liabilities as of June 30, 2022 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2023	$	17,039	$	162	$	17,201
2024	17,886		80		17,966
2025	15,850		80		15,930
2026	15,306		67		15,373
2027	15,012		53		15,065
Thereafter	65,768		25		65,793
Total lease payments	146,861		467		147,328
Less: Imputed interest	26,226		40		26,266
Total lease liabilities	$	120,635	$	427	$	121,062

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.

Certain 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 fiscal years ended June 30, 2022, 2021 and 2020 were as follows:

	Fiscal Year Ended
	2022		2021		2020
Operating lease expenses (a)	$	15,911	$	16,403	$	18,981
Finance lease expenses (a)	251		391		1,197
Variable lease expenses	1,010		1,423		2,570
Short-term lease expenses	3,394		2,387		1,723
Total lease expenses	$	20,566	$	20,604	$	24,471

(a) For the fiscal year ended June 30, 2020, operating lease expenses and finance lease expenses included $1,505 and $251, respectively, of ROU asset impairment charges associated with the Company’s ongoing productivity and transformation initiatives. Of this amount, $929 was recognized as a component of long-lived asset and intangibles impairment on the Consolidated Statement of Operations with the remainder recognized as a component of cost of sales.

Supplemental balance sheet information related to leases is as follows:

Leases	Classification	June 30, 2022		June 30, 2021
Assets
Operating lease ROU assets	Operating lease right-of-use assets	$	114,691	$	92,010
Finance lease ROU assets, net	Property, plant and equipment, net	413		547
Total leased assets		$	115,104	$	92,557
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	13,154	$	10,870
Finance	Current portion of long-term debt	149		229
Non-current
Operating	Operating lease liabilities, noncurrent portion	107,481		85,929
Finance	Long-term debt, less current portion	278		326
Total lease liabilities		$	121,062	$	97,354

Additional information related to leases is as follows:

	Fiscal Year Ended
	2022			2021			2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15,462		$	16,738		$	17,290
Operating cash flows from finance leases	$	20		$	17		$	26
Financing cash flows from finance leases	$	226		$	338		$	543
ROU assets obtained in exchange for lease obligations (b):
Operating leases	$	35,337		$	25,446		$	104,915
Finance leases	$	116		$	690		$	1,475
ROU assets obtained in connection with an acquisition (See Note 4):
Operating leases	$	4,098		$	—		$	—
Weighted average remaining lease term:
Operating leases	9.3 years			9.8 years			10.0 years
Finance leases	4.1 years			4.0 years			2.5 years
Weighted average discount rate:
Operating leases	3.9		%	3.3		%	3.0		%
Finance leases	4.1		%	3.9		%	2.3		%

(b) ROU assets obtained in exchange for lease obligations includes the impact of the adoption of ASU 2016-02 effective July 1, 2019 (see Note 2) and leases which commenced, were modified or terminated during the fiscal year ended June 30, 2020.

Maturities of lease liabilities as of June 30, 2022 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2023	$	17,039	$	162	$	17,201
2024	17,886		80		17,966
2025	15,850		80		15,930
2026	15,306		67		15,373
2027	15,012		53		15,065
Thereafter	65,768		25		65,793
Total lease payments	146,861		467		147,328
Less: Imputed interest	26,226		40		26,266
Total lease liabilities	$	120,635	$	427	$	121,062