Leases

12 Months Ended

Jun. 30, 2024

LEASES

The Company leases office space, warehouse and distribution facilities, manufacturing equipment and vehicles primarily in North America and Western 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 fiscal years ended June 30, 2024, 2023 and 2022 were as follows:


	Fiscal Year Ended
	2024		2023		2022
Operating lease expenses	$	17,446	$	18,173	$	15,911
Finance lease expenses		147		227		251
Variable lease expenses		723		740		1,010
Short-term lease expenses		1,565		2,003		3,394
Total lease expenses	$	19,881	$	21,143	$	20,566

Supplemental balance sheet information related to leases is as follows:


Leases	Classification	Fiscal Year Ended June 30,
		2024		2023
Assets
Operating lease ROU assets	Operating lease right-of-use assets, net	$	86,634	$	95,894
Finance lease ROU assets, net	Property, plant and equipment, net		206		289
Total leased assets		$	86,840	$	96,183

Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	10,759	$	10,489
Finance	Current portion of long-term debt		85		83
Non-current
Operating	Operating lease liabilities, noncurrent portion		80,863		90,014
Finance	Long-term debt, less current portion		137		222
Total lease liabilities		$	91,844	$	100,808

Additional information related to leases is as follows:


	Fiscal Year Ended June 30,
	2024			2023			2022
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	16,529		$	16,446		$	15,462
Operating cash flows from finance leases	$	12		$	16		$	20
Financing cash flows from finance leases	$	81		$	161		$	226
ROU assets obtained in exchange for lease obligations:
Operating leases(1)(2)	$	4,243		$	(2,627	)	$	39,435
Finance leases	$	35		$	118		$	116
Weighted average remaining lease term:
Operating leases	8.8 years			10.4 years			9.3 years
Finance leases	3.0 years			3.9 years			4.1 years
Weighted average discount rate:
Operating leases		5.0	%		4.8	%		3.9	%
Finance leases		4.6	%		4.7	%		4.1	%

(1) Includes adjustment for remeasurement of an operating lease during fiscal year ended June 30, 2024, which resulted in a net reduction of an ROU asset and a corresponding reduction in lease liability of $9,375.

(2) 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, 2024 were as follows:


Fiscal Year	Operating leases		Finance leases		Total
2025	$	14,680	$	93	$	14,773
2026		14,617		68		14,685
2027		13,599		53		13,652
2028		13,253		25		13,278
2029		11,990		—		11,990
Thereafter		45,740		—		45,740
Total lease payments		113,879		239		114,118
Less: Imputed interest		22,257		17		22,274
Total lease liabilities	$	91,622	$	222	$	91,844