Leases

12 Months Ended

Jun. 30, 2024

We lease certain machinery and plant equipment, office space, and production and warehouse facilities under non-cancelable operating leases that expire on various dates through 2037. Our finance leases primarily relate to machinery and plant equipment. Over the past three years, we continually assessed our leased real estate footprint as a facet of our evolving remote-first operating model for many of our employees, which resulted in a decrease to our leased real estate portfolio over this period of time.

The following table presents the classification of right-of-use assets and lease liabilities as of June 30, 2024 and 2023.


Leases	Consolidated Balance Sheet Classification	June 30, 2024		June 30, 2023

Assets:
Operating right-of-use assets	Operating lease assets, net	$	78,681	$	76,776
Finance right-of-use assets	Property, plant, and equipment, net	26,025		30,616
Total lease assets		$	104,706	$	107,392
Liabilities:
Current:
Operating lease liabilities	Operating lease liabilities, current	$	19,634	$	22,559
Finance lease liabilities	Other current liabilities	8,323		9,938
Non-current:
Operating lease liabilities	Operating lease liabilities, non-current	61,895		56,668
Finance lease liabilities	Other liabilities	28,037		29,822
Total lease liabilities		$	117,889	$	118,987

The following table represents the lease expenses for the years ended June 30, 2024 and 2023:


	Year Ended June 30,
	2024		2023
Operating lease expense	$	25,844	$	30,240
Finance lease expense:
Amortization of finance lease assets	5,300		4,565
Interest on lease liabilities	226		205
Variable lease expense	5,614		6,821
Less: sublease income	(904)		(833)
Net operating and finance lease cost	$	36,080	$	40,998

Future minimum lease payments under non-cancelable leases as of June 30, 2024 were as follows:


Payments Due by Period	Operating lease obligations		Finance lease obligations		Total lease obligations
Less than 1 year	$	23,557	$	10,251	$	33,808
2 years	19,119		8,317		27,436
3 years	14,672		6,388		21,060
4 years	10,794		4,240		15,034
5 years	8,102		2,934		11,036
Thereafter	19,925		12,808		32,733
Total	96,169		44,938		141,107
Less: present value discount	(14,640)		(8,578)		(23,218)
Lease liability	$	81,529	$	36,360	$	117,889

Other information about leases is as follows:


Lease Term and Discount Rate	June 30, 2024		June 30, 2023
Weighted-average remaining lease term (years):
Operating leases	5.90		5.74
Finance leases	7.96		8.69
Weighted-average discount rate:
Operating leases	5.70	%	5.20	%
Finance leases	7.04	%	6.23	%

Our leases have remaining lease terms of 1 year to 15 years, inclusive of renewal or termination options that we are reasonably certain to exercise.


	Year Ended June 30,
Supplemental Cash Flow Information	2024		2023
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	25,015	$	31,161
Operating cash flows from finance leases	226		205
Financing cash flows from finance leases	10,140		8,290

Fiscal Year 2022 Purchase and Sale of a Leased Facility

During fiscal year 2022, we paid $27,885 to exercise the purchase option available for a leased facility (which we had previously impaired under our long-lived asset policy), then immediately sold the facility to a separate third party for $23,226. The purchase option exercise was presented as a financing activity on our consolidated statement of cash flows while the sale of the facility was presented as an investing activity. We recognized a $3,324 gain on the sale within general and administrative expense on our consolidated statement of operations as the sale price exceeded the prior impaired carrying value of the asset.