LEASES

6 Months Ended

Dec. 31, 2022

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 six months ended December 31, 2022 were as follows:


	Three Months Ended				Six Months Ended
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Operating lease expenses	$	2,238	$	3,665	$	7,213	$	7,417



Finance lease expenses	71		67		140		137
Variable lease expenses	169		306		349		709
Short-term lease expenses	390		677		886		2,042
Total lease expenses	$	2,868	$	4,715	$	8,588	$	10,305

Supplemental balance sheet information related to leases was as follows:


Leases	Classification	December 31, 2022		June 30, 2022
Assets
Operating lease ROU assets, net	Operating lease right-of-use assets, net	$	101,374	$	114,691

Finance lease ROU assets, net	Property, plant and equipment, net	366		413

Total leased assets		$	101,740	$	115,104

Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	13,448	$	13,154

Finance	Current portion of long-term debt	100		149

Non-current
Operating	Operating lease liabilities, noncurrent portion	92,587		107,481
Finance	Long-term debt, less current portion	279		278
Total lease liabilities		$	106,414	$	121,062

Additional information related to leases is as follows:


	Six Months Ended
	December 31, 2022			December 31, 2021
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,173		$	7,560
Operating cash flows from finance leases	$	9		$	10
Financing cash flows from finance leases	$	106		$	123
ROU assets obtained in exchange for lease obligations:
Operating leases(1)	$	(4,764)		$	3,182
Finance leases	$	60		$	116
ROU assets obtained in connection with an acquisition:
Operating leases	$	—		$	4,098
Weighted average remaining lease term:
Operating leases	10.7 years			9.5 years
Finance leases	4.1 years			4.2 years
Weighted average discount rate:
Operating leases	4.7		%	3.2		%
Finance leases	4.6		%	3.9		%

(1) Includes adjustment for modification of an operating lease during the three months ended December 31, 2022 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 December 31, 2022 were as follows:


Fiscal Year	Operating leases		Finance leases		Total
2023 (remainder of year)	$	9,544	$	64	$	9,608
2024	14,842		101		14,943
2025	12,564		99		12,663
2026	11,919		74		11,993
2027	11,638		54		11,692
Thereafter	77,290		25		77,315
Total lease payments	137,797		417		138,214
Less: Imputed interest	31,762		38		31,800
Total lease liabilities	$	106,035	$	379	$	106,414

LEASES

The components of lease expenses for the three and six months ended December 31, 2022 were as follows:


	Three Months Ended				Six Months Ended
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Operating lease expenses	$	2,238	$	3,665	$	7,213	$	7,417



Finance lease expenses	71		67		140		137
Variable lease expenses	169		306		349		709
Short-term lease expenses	390		677		886		2,042
Total lease expenses	$	2,868	$	4,715	$	8,588	$	10,305

Supplemental balance sheet information related to leases was as follows:


Leases	Classification	December 31, 2022		June 30, 2022
Assets
Operating lease ROU assets, net	Operating lease right-of-use assets, net	$	101,374	$	114,691

Finance lease ROU assets, net	Property, plant and equipment, net	366		413

Total leased assets		$	101,740	$	115,104

Liabilities
Current
Operating	Accrued expenses and other current liabilities	$	13,448	$	13,154

Finance	Current portion of long-term debt	100		149

Non-current
Operating	Operating lease liabilities, noncurrent portion	92,587		107,481
Finance	Long-term debt, less current portion	279		278
Total lease liabilities		$	106,414	$	121,062

Additional information related to leases is as follows:


	Six Months Ended
	December 31, 2022			December 31, 2021
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,173		$	7,560
Operating cash flows from finance leases	$	9		$	10
Financing cash flows from finance leases	$	106		$	123
ROU assets obtained in exchange for lease obligations:
Operating leases(1)	$	(4,764)		$	3,182
Finance leases	$	60		$	116
ROU assets obtained in connection with an acquisition:
Operating leases	$	—		$	4,098
Weighted average remaining lease term:
Operating leases	10.7 years			9.5 years
Finance leases	4.1 years			4.2 years
Weighted average discount rate:
Operating leases	4.7		%	3.2		%
Finance leases	4.6		%	3.9		%

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


Fiscal Year	Operating leases		Finance leases		Total
2023 (remainder of year)	$	9,544	$	64	$	9,608
2024	14,842		101		14,943
2025	12,564		99		12,663
2026	11,919		74		11,993
2027	11,638		54		11,692
Thereafter	77,290		25		77,315
Total lease payments	137,797		417		138,214
Less: Imputed interest	31,762		38		31,800
Total lease liabilities	$	106,035	$	379	$	106,414