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Leases
 3 Months Ended
Sep. 30, 2022
Leases [Abstract]  
Leases Leases In accordance with ASC 842, at contract inception the Company determines if a contract contains a lease by assessing whether the contract contains an identified asset and whether the Company has the ability to control the asset. The Company also determines if the lease meets the classification criteria for an operating lease versus a finance lease under ASC 842. Substantially all of the Company's leases are operating leases for real estate, warehouse and office equipment ranging in duration from 1 year to 10 years. The Company has elected not to record short-term operating leases with an initial term of 12
months or less on the Condensed Consolidated Balance Sheets. Operating leases are recorded as other non-current assets, accrued expenses and other current liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets. The Company has finance leases for information technology equipment expiring through fiscal year 2027. Finance leases are recorded as property and equipment, net, accrued expenses and other current liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets. The gross amount of the balances recorded related to finance leases is immaterial to the financial statements at September 30, 2022 and June 30, 2022.

Operating lease right-of-use assets and lease liabilities are recognized at the commencement date based on the net present value of future minimum lease payments over the lease term. The Company generally is not able to determine the rate implicit in its leases and has elected to apply an incremental borrowing rate as the discount rate for the present value determination, which is based on the Company's cost of borrowings for the relevant terms of each lease and geographical economic factors. Certain operating lease agreements contain options to extend or terminate the lease. The lease term used is adjusted for these options when the Company is reasonably certain it will exercise the option. Operating lease expense is recognized on a straight-line basis over the lease term. Variable lease payments not based on a rate or index, such as costs for common area maintenance, are expensed as incurred. Further, the Company has elected the practical expedient to recognize all lease and non-lease components as a single lease component, where applicable.

The following table presents amounts recorded on the Condensed Consolidated Balance Sheet related to operating leases at September 30, 2022 and June 30, 2022:

September 30, 2022June 30, 2022
Operating leasesBalance Sheet location(in thousands)
Operating lease right-of-use assetsOther non-current assets$15,184 $16,217 
Current operating lease liabilitiesAccrued expenses and other current liabilities$4,533 $4,499 
Long-term operating lease liabilitiesOther long-term liabilities$11,962 $13,085 

The following table presents amounts recorded in operating lease expense as part of selling general and administrative expenses on the Condensed Consolidated Income Statements during the quarters ended September 30, 2022 and 2021. Operating lease costs contain immaterial amounts of short-term lease costs for leases with an initial term of 12 months or less.

Quarter ended September 30,
20222021
(in thousands)
Operating lease cost$1,286 $1,243 
Variable lease cost344 322 
$1,630 $1,565 

Supplemental cash flow information related to the Company's operating leases for the quarters ended September 30, 2022 and 2021 are presented in the table below:

Quarter ended
September 30,
20222021
(in thousands)
Cash paid for amounts in the measurement of lease liabilities$1,339 $1,294 
Right-of-use assets obtained in exchange for lease obligations111 362 

The weighted-average remaining lease term and discount rate at September 30, 2022 are presented in the table below:
September 30, 2022
Weighted-average remaining lease term4.17 years
Weighted-average discount rate3.99 %

The following table presents the maturities of the Company's operating lease liabilities at September 30, 2022:

Operating leases
(in thousands)
2023$4,006 
20244,543 
20253,416 
20262,878 
20272,597 
Thereafter632 
Total future payments18,072 
Less: amounts representing interest1,577 
Present value of lease payments$16,495 
Leases Leases In accordance with ASC 842, at contract inception the Company determines if a contract contains a lease by assessing whether the contract contains an identified asset and whether the Company has the ability to control the asset. The Company also determines if the lease meets the classification criteria for an operating lease versus a finance lease under ASC 842. Substantially all of the Company's leases are operating leases for real estate, warehouse and office equipment ranging in duration from 1 year to 10 years. The Company has elected not to record short-term operating leases with an initial term of 12
months or less on the Condensed Consolidated Balance Sheets. Operating leases are recorded as other non-current assets, accrued expenses and other current liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets. The Company has finance leases for information technology equipment expiring through fiscal year 2027. Finance leases are recorded as property and equipment, net, accrued expenses and other current liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets. The gross amount of the balances recorded related to finance leases is immaterial to the financial statements at September 30, 2022 and June 30, 2022.

Operating lease right-of-use assets and lease liabilities are recognized at the commencement date based on the net present value of future minimum lease payments over the lease term. The Company generally is not able to determine the rate implicit in its leases and has elected to apply an incremental borrowing rate as the discount rate for the present value determination, which is based on the Company's cost of borrowings for the relevant terms of each lease and geographical economic factors. Certain operating lease agreements contain options to extend or terminate the lease. The lease term used is adjusted for these options when the Company is reasonably certain it will exercise the option. Operating lease expense is recognized on a straight-line basis over the lease term. Variable lease payments not based on a rate or index, such as costs for common area maintenance, are expensed as incurred. Further, the Company has elected the practical expedient to recognize all lease and non-lease components as a single lease component, where applicable.

The following table presents amounts recorded on the Condensed Consolidated Balance Sheet related to operating leases at September 30, 2022 and June 30, 2022:

September 30, 2022June 30, 2022
Operating leasesBalance Sheet location(in thousands)
Operating lease right-of-use assetsOther non-current assets$15,184 $16,217 
Current operating lease liabilitiesAccrued expenses and other current liabilities$4,533 $4,499 
Long-term operating lease liabilitiesOther long-term liabilities$11,962 $13,085 

The following table presents amounts recorded in operating lease expense as part of selling general and administrative expenses on the Condensed Consolidated Income Statements during the quarters ended September 30, 2022 and 2021. Operating lease costs contain immaterial amounts of short-term lease costs for leases with an initial term of 12 months or less.

Quarter ended September 30,
20222021
(in thousands)
Operating lease cost$1,286 $1,243 
Variable lease cost344 322 
$1,630 $1,565 

Supplemental cash flow information related to the Company's operating leases for the quarters ended September 30, 2022 and 2021 are presented in the table below:

Quarter ended
September 30,
20222021
(in thousands)
Cash paid for amounts in the measurement of lease liabilities$1,339 $1,294 
Right-of-use assets obtained in exchange for lease obligations111 362 

The weighted-average remaining lease term and discount rate at September 30, 2022 are presented in the table below:
September 30, 2022
Weighted-average remaining lease term4.17 years
Weighted-average discount rate3.99 %

The following table presents the maturities of the Company's operating lease liabilities at September 30, 2022:

Operating leases
(in thousands)
2023$4,006 
20244,543 
20253,416 
20262,878 
20272,597 
Thereafter632 
Total future payments18,072 
Less: amounts representing interest1,577 
Present value of lease payments$16,495