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LEASES

3 Months Ended

Sep. 30, 2023

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 months ended September 30, 2023 and 2022 were as follows:


	Three Months Ended
	September 30, 2023		September 30, 2022
Operating lease expenses	$	4,578	$	4,975



Finance lease expenses	37		69
Variable lease expenses	182		180
Short-term lease expenses	395		496
Total lease expenses	$	5,192	$	5,720

Supplemental balance sheet information related to leases was as follows:


Leases	Classification	September 30, 2023		June 30, 2023
Assets
Operating lease ROU assets, net	Operating lease right-of-use assets, net	$	102,540	$	95,894

Finance lease ROU assets, net	Property, plant and equipment, net	268		289

Total leased assets		$	102,808	$	96,183

Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	10,152	$	10,489

Finance	Current portion of long-term debt	84		83

Non-current
Operating	Operating lease liabilities, noncurrent portion	97,165		90,014
Finance	Long-term debt, less current portion	200		222
Total lease liabilities		$	107,601	$	100,808

Additional information related to leases is as follows:


	Three Months Ended
	September 30, 2023			September 30, 2022
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,215		$	3,968
Operating cash flows from finance leases	$	3		$	4
Financing cash flows from finance leases	$	19		$	52
ROU assets obtained in exchange for lease obligations:
Operating leases	$	10,986		$	7,143
Finance leases	$	—		$	26


Weighted average remaining lease term:
Operating leases	10.3 years			10.2 years
Finance leases	3.6 years			4.1 years
Weighted average discount rate:
Operating leases	5.1		%	4.5		%
Finance leases	4.5		%	4.3		%

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


Fiscal Year	Operating leases		Finance leases		Total
2024 (remainder of year)	$	11,808	$	71	$	11,879
2025	14,261		93		14,354
2026	13,605		68		13,673
2027	13,307		53		13,360
2028	13,390		25		13,415
Thereafter	74,979		—		74,979
Total lease payments	141,350		310		141,660
Less: Imputed interest	34,033		26		34,059
Total lease liabilities	$	107,317	$	284	$	107,601

LEASES

The components of lease expenses for the three months ended September 30, 2023 and 2022 were as follows:


	Three Months Ended
	September 30, 2023		September 30, 2022
Operating lease expenses	$	4,578	$	4,975



Finance lease expenses	37		69
Variable lease expenses	182		180
Short-term lease expenses	395		496
Total lease expenses	$	5,192	$	5,720

Supplemental balance sheet information related to leases was as follows:


Leases	Classification	September 30, 2023		June 30, 2023
Assets
Operating lease ROU assets, net	Operating lease right-of-use assets, net	$	102,540	$	95,894

Finance lease ROU assets, net	Property, plant and equipment, net	268		289

Total leased assets		$	102,808	$	96,183

Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	10,152	$	10,489

Finance	Current portion of long-term debt	84		83

Non-current
Operating	Operating lease liabilities, noncurrent portion	97,165		90,014
Finance	Long-term debt, less current portion	200		222
Total lease liabilities		$	107,601	$	100,808

Additional information related to leases is as follows:


	Three Months Ended
	September 30, 2023			September 30, 2022
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,215		$	3,968
Operating cash flows from finance leases	$	3		$	4
Financing cash flows from finance leases	$	19		$	52
ROU assets obtained in exchange for lease obligations:
Operating leases	$	10,986		$	7,143
Finance leases	$	—		$	26


Weighted average remaining lease term:
Operating leases	10.3 years			10.2 years
Finance leases	3.6 years			4.1 years
Weighted average discount rate:
Operating leases	5.1		%	4.5		%
Finance leases	4.5		%	4.3		%

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


Fiscal Year	Operating leases		Finance leases		Total
2024 (remainder of year)	$	11,808	$	71	$	11,879
2025	14,261		93		14,354
2026	13,605		68		13,673
2027	13,307		53		13,360
2028	13,390		25		13,415
Thereafter	74,979		—		74,979
Total lease payments	141,350		310		141,660
Less: Imputed interest	34,033		26		34,059
Total lease liabilities	$	107,317	$	284	$	107,601