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Leases

3 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases In accordance with Accounting Standards Codification ("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 condensed consolidated financial statements at September 30, 2023 and the consolidated financial statements at June 30, 2023.

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 Sheets related to operating leases at September 30, 2023 and June 30, 2023:

												September 30, 2023						June 30, 2023
Operating leases						Balance Sheet location						(in thousands)
Operating lease right-of-use assets						Other non-current assets						$	11,775					$	12,539
Current operating lease liabilities						Accrued expenses and other current liabilities						$	4,270					$	4,355
Long-term operating lease liabilities						Other long-term liabilities						$	8,569					$	9,329

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 quarter ended September 30, 2023 and 2022. 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,
						2023						2022
						(in thousands)
Operating lease cost						$	1,209					$	1,286
Variable lease cost						383						344
						$	1,592					$	1,630

Supplemental cash flow information related to the Company's operating leases for the three months ended September 30, 2023 and 2022 are presented in the table below:

												Quarter ended
												September 30,
																		2023						2022
												(in thousands)
Cash paid for amounts in the measurement of lease liabilities																		$	1,412					$	1,339
Right-of-use assets obtained in exchange for lease obligations																		230						111

The weighted-average remaining lease term and discount rate at September 30, 2023 are presented in the table below:

						September 30, 2023
Weighted-average remaining lease term						3.41 years
Weighted-average discount rate						4.58		%

The following table presents the maturities of the Company's operating lease liabilities at September 30, 2023:

						Operating leases
						(in thousands)
2024						$	3,769
2025						3,677
2026						3,096
2027						2,678
2028						632
Thereafter						—
Total future payments						13,852
Less: amounts representing interest						1,013
Present value of lease payments						$	12,839

Leases

Leases In accordance with Accounting Standards Codification ("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 condensed consolidated financial statements at September 30, 2023 and the consolidated financial statements at June 30, 2023.

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 Sheets related to operating leases at September 30, 2023 and June 30, 2023:

												September 30, 2023						June 30, 2023
Operating leases						Balance Sheet location						(in thousands)
Operating lease right-of-use assets						Other non-current assets						$	11,775					$	12,539
Current operating lease liabilities						Accrued expenses and other current liabilities						$	4,270					$	4,355
Long-term operating lease liabilities						Other long-term liabilities						$	8,569					$	9,329

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 quarter ended September 30, 2023 and 2022. 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,
						2023						2022
						(in thousands)
Operating lease cost						$	1,209					$	1,286
Variable lease cost						383						344
						$	1,592					$	1,630

Supplemental cash flow information related to the Company's operating leases for the three months ended September 30, 2023 and 2022 are presented in the table below:

												Quarter ended
												September 30,
																		2023						2022
												(in thousands)
Cash paid for amounts in the measurement of lease liabilities																		$	1,412					$	1,339
Right-of-use assets obtained in exchange for lease obligations																		230						111

The weighted-average remaining lease term and discount rate at September 30, 2023 are presented in the table below:

						September 30, 2023
Weighted-average remaining lease term						3.41 years
Weighted-average discount rate						4.58		%

The following table presents the maturities of the Company's operating lease liabilities at September 30, 2023:

						Operating leases
						(in thousands)
2024						$	3,769
2025						3,677
2026						3,096
2027						2,678
2028						632
Thereafter						—
Total future payments						13,852
Less: amounts representing interest						1,013
Present value of lease payments						$	12,839

X

- References

No definition available.

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//842-20/tableOfContent

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- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//842-20/tableOfContent

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