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Leases
 6 Months Ended
Dec. 31, 2024
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 2028. 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 December 31, 2024 and the consolidated financial statements at June 30, 2024.

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 December 31, 2024 and June 30, 2024:

December 31, 2024June 30, 2024
Operating leasesBalance Sheet location(in thousands)
Operating lease right-of-use assetsOther non-current assets$9,473 $9,057 
Current operating lease liabilitiesAccrued expenses and other current liabilities$3,646 $3,398 
Long-term operating lease liabilitiesOther long-term liabilities$6,572 $6,507 

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 and six months ended December 31, 2024 and 2023. Operating lease costs contain immaterial amounts of short-term lease costs for leases with an initial term of 12 months or less.
Quarter ended December 31,Six months ended December 31,
2024202320242023
(in thousands)
Operating lease cost$1,094 $1,434 $2,215 $2,643 
Variable lease cost343 322 674 705 
$1,437 $1,756 $2,889 $3,348 

Supplemental cash flow information related to the Company's operating leases for the six months ended December 31, 2024 and 2023 are presented in the table below:

Six months ended December 31,
20242023
(in thousands)
Cash paid for amounts in the measurement of lease liabilities$2,285 $2,793 
Right-of-use assets obtained in exchange for lease obligations499 232 

The weighted-average remaining lease term and discount rate at December 31, 2024 are presented in the table below:

December 31, 2024
Weighted-average remaining lease term2.93 years
Weighted-average discount rate5.09 %

The following table presents the maturities of the Company's operating lease liabilities at December 31, 2024:

Operating leases
(in thousands)
2025$2,207 
20264,136 
20273,764 
20281,394 
2029714 
Thereafter300 
Total future payments12,515 
Less: amounts representing interest2,297 
Present value of lease payments$10,218 
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 2028. 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 December 31, 2024 and the consolidated financial statements at June 30, 2024.

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 December 31, 2024 and June 30, 2024:

December 31, 2024June 30, 2024
Operating leasesBalance Sheet location(in thousands)
Operating lease right-of-use assetsOther non-current assets$9,473 $9,057 
Current operating lease liabilitiesAccrued expenses and other current liabilities$3,646 $3,398 
Long-term operating lease liabilitiesOther long-term liabilities$6,572 $6,507 

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 and six months ended December 31, 2024 and 2023. Operating lease costs contain immaterial amounts of short-term lease costs for leases with an initial term of 12 months or less.
Quarter ended December 31,Six months ended December 31,
2024202320242023
(in thousands)
Operating lease cost$1,094 $1,434 $2,215 $2,643 
Variable lease cost343 322 674 705 
$1,437 $1,756 $2,889 $3,348 

Supplemental cash flow information related to the Company's operating leases for the six months ended December 31, 2024 and 2023 are presented in the table below:

Six months ended December 31,
20242023
(in thousands)
Cash paid for amounts in the measurement of lease liabilities$2,285 $2,793 
Right-of-use assets obtained in exchange for lease obligations499 232 

The weighted-average remaining lease term and discount rate at December 31, 2024 are presented in the table below:

December 31, 2024
Weighted-average remaining lease term2.93 years
Weighted-average discount rate5.09 %

The following table presents the maturities of the Company's operating lease liabilities at December 31, 2024:

Operating leases
(in thousands)
2025$2,207 
20264,136 
20273,764 
20281,394 
2029714 
Thereafter300 
Total future payments12,515 
Less: amounts representing interest2,297 
Present value of lease payments$10,218