LEASES

12 Months Ended

Jun. 30, 2023

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, 2023, 2022 and 2021 were as follows:

	Fiscal Year Ended
	2023		2022		2021
Operating lease expenses (a)	$	18,173	$	15,911	$	16,403
Finance lease expenses (a)	227		251		391
Variable lease expenses	740		1,010		1,423
Short-term lease expenses	2,003		3,394		2,387
Total lease expenses	$	21,143	$	20,566	$	20,604

Supplemental balance sheet information related to leases is as follows:

Leases	Classification	Fiscal Year Ended June 30,
		2023		2022
Assets
Operating lease ROU assets	Operating lease right-of-use assets	$	95,894	$	114,691
Finance lease ROU assets, net	Property, plant and equipment, net	289		413
Total leased assets		$	96,183	$	115,104
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	10,489	$	13,154
Finance	Current portion of long-term debt	83		149
Non-current
Operating	Operating lease liabilities, noncurrent portion	90,014		107,481
Finance	Long-term debt, less current portion	222		278
Total lease liabilities		$	100,808	$	121,062

Additional information related to leases is as follows:

	Fiscal Year Ended June 30,
	2023			2022			2021
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	16,446		$	15,462		$	16,738
Operating cash flows from finance leases	$	16		$	20		$	17
Financing cash flows from finance leases	$	161		$	226		$	338
ROU assets obtained in exchange for lease obligations:
Operating leases(1)	$	(2,627)		$	39,435		$	25,446
Finance leases	$	118		$	116		$	690
Weighted average remaining lease term:
Operating leases	10.4 years			9.3 years			9.8 years
Finance leases	3.9 years			4.1 years			4.0 years
Weighted average discount rate:
Operating leases	4.8		%	3.9		%	3.3		%
Finance leases	4.7		%	4.1		%	3.9		%

(1) Includes adjustment for modification of an operating lease for the fiscal year ended June 30, 2023, which resulted in a reduction of ROU assets and lease liabilities of $13,876 and $17,244, respectively, and recognition of a gain of $3,368 related to the modification.

Maturities of lease liabilities as of June 30, 2023 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2024	$	15,087	$	74	$	15,161
2025	12,939		101		13,040
2026	12,221		76		12,297
2027	11,897		59		11,956
2028	11,960		25		11,985
Thereafter	66,118		—		66,118
Total lease payments	130,222		335		130,557
Less: Imputed interest	29,719		30		29,749
Total lease liabilities	$	100,503	$	305	$	100,808

Subsequent to June 30, 2023, the Company entered into an operating lease for its new global headquarters, which has not yet commenced. Obligations under this lease are approximately $12,849, and the lease is expected to commence during the first quarter of fiscal year ending June 30, 2024, with an initial lease term of 10.5 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.

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, 2023, 2022 and 2021 were as follows:

	Fiscal Year Ended
	2023		2022		2021
Operating lease expenses (a)	$	18,173	$	15,911	$	16,403
Finance lease expenses (a)	227		251		391
Variable lease expenses	740		1,010		1,423
Short-term lease expenses	2,003		3,394		2,387
Total lease expenses	$	21,143	$	20,566	$	20,604

Supplemental balance sheet information related to leases is as follows:

Leases	Classification	Fiscal Year Ended June 30,
		2023		2022
Assets
Operating lease ROU assets	Operating lease right-of-use assets	$	95,894	$	114,691
Finance lease ROU assets, net	Property, plant and equipment, net	289		413
Total leased assets		$	96,183	$	115,104
Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	10,489	$	13,154
Finance	Current portion of long-term debt	83		149
Non-current
Operating	Operating lease liabilities, noncurrent portion	90,014		107,481
Finance	Long-term debt, less current portion	222		278
Total lease liabilities		$	100,808	$	121,062

Additional information related to leases is as follows:

	Fiscal Year Ended June 30,
	2023			2022			2021
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	16,446		$	15,462		$	16,738
Operating cash flows from finance leases	$	16		$	20		$	17
Financing cash flows from finance leases	$	161		$	226		$	338
ROU assets obtained in exchange for lease obligations:
Operating leases(1)	$	(2,627)		$	39,435		$	25,446
Finance leases	$	118		$	116		$	690
Weighted average remaining lease term:
Operating leases	10.4 years			9.3 years			9.8 years
Finance leases	3.9 years			4.1 years			4.0 years
Weighted average discount rate:
Operating leases	4.8		%	3.9		%	3.3		%
Finance leases	4.7		%	4.1		%	3.9		%

(1) Includes adjustment for modification of an operating lease for the fiscal year ended June 30, 2023, which resulted in a reduction of ROU assets and lease liabilities of $13,876 and $17,244, respectively, and recognition of a gain of $3,368 related to the modification.

Maturities of lease liabilities as of June 30, 2023 were as follows:

Fiscal Year	Operating leases		Finance leases		Total
2024	$	15,087	$	74	$	15,161
2025	12,939		101		13,040
2026	12,221		76		12,297
2027	11,897		59		11,956
2028	11,960		25		11,985
Thereafter	66,118		—		66,118
Total lease payments	130,222		335		130,557
Less: Imputed interest	29,719		30		29,749
Total lease liabilities	$	100,503	$	305	$	100,808

Subsequent to June 30, 2023, the Company entered into an operating lease for its new global headquarters, which has not yet commenced. Obligations under this lease are approximately $12,849, and the lease is expected to commence during the first quarter of fiscal year ending June 30, 2024, with an initial lease term of 10.5 years excluding renewal options.