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Leases
 3 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leases Leases
Leasing Arrangements as Lessee
The Company leases certain property and equipment under various third-party operating and finance lease agreements. The Company determines if an arrangement is or contains a lease at the lease inception date by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. The leases are noncancelable and expire on various terms from 2023 through 2032. We determine if an arrangement is a lease upon commencement of the contract. If an arrangement is determined to be a long-term lease (greater than 12 months), we recognize an ROU asset and lease liability based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may also include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
We have elected to apply the short-term lease exception for contracts that have a lease term of twelve months or less and do not include an option to purchase the underlying asset. Therefore, we do not recognize a ROU asset or lease liability for such contracts. We recognize short-term lease payments as expense on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or rate are recognized as expense. Certain leases include escalations based on inflation indexes and fair market value adjustments. Operating lease liabilities are calculated using the prevailing index or rate at lease commencement for such leases.
The following table presents the components of our ROU assets and their classification in our Balance Sheet at September 30, 2023:
Component of Lease BalancesBalance Sheet Line ItemsSeptember 30,
2023		June 30, 2023
in thousands
Assets:
Operating lease assetsOperating lease assets$20,454 $21,210 
Finance lease assetsProperty and equipment, net15,276 16,378 
Total leased assets$35,730 $37,588 
The following table presents the components of our lease cost and the classification of such costs in our Statements of Operations for the three months ended September 30, 2023:
Three Months Ended September 30,
Component of Lease CostStatements of Operations Line Items 20232022
in thousands
Operating lease costCost of care excluding depreciation and amortization and Corporate, general and administrative$1,118 $1,025 
Finance lease expense:
Amortization of leased assetsDepreciation and amortization1,102 769 
Interest on lease liabilitiesInterest expense, net33 317 
Variable lease costCost of care excluding depreciation and amortization and Corporate, general and administrative— — 
Short-term lease costCost of care excluding depreciation and amortization and Corporate, general and administrative38 11 
Total lease expense$2,291 $2,122 
The following table includes the weighted-average lease terms and discount rates for operating and finance leases as of September 30, 2023:
Weighted average remaining lease term:September 30,
2023		September 30,
2022
Operating leases7.7 years8.8 years
Finance leases3.7 years3.8 years
Weighted average discount rate:September 30,
2023		September 30,
2022
Operating leases6.62 %6.61 %
Finance leases7.87 %8.76 %
The following table includes the future maturities of lease payments for operating leases and finance leases for periods subsequent to September 30, 2023:
in thousandsOperating
Lease		Finance
Lease		Total
Amount remaining in 2024$3,681 $4,531 $8,212 
20254,358 5,279 9,637 
20264,285 4,254 8,539 
20273,981 3,557 7,538 
20283,139 1,767 4,906 
Thereafter7,033 — 7,033 
Total lease payments26,477 19,388 45,865 
Less liability accretion / imputed interest(4,820)(2,728)(7,548)
Total lease liabilities21,657 16,660 38,317 
Less: Current lease liabilities3,577 4,612 8,189 
Total long-term lease liabilities$18,080 $12,048 $30,128 
Leases Leases
Leasing Arrangements as Lessee
The Company leases certain property and equipment under various third-party operating and finance lease agreements. The Company determines if an arrangement is or contains a lease at the lease inception date by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. The leases are noncancelable and expire on various terms from 2023 through 2032. We determine if an arrangement is a lease upon commencement of the contract. If an arrangement is determined to be a long-term lease (greater than 12 months), we recognize an ROU asset and lease liability based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may also include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
We have elected to apply the short-term lease exception for contracts that have a lease term of twelve months or less and do not include an option to purchase the underlying asset. Therefore, we do not recognize a ROU asset or lease liability for such contracts. We recognize short-term lease payments as expense on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or rate are recognized as expense. Certain leases include escalations based on inflation indexes and fair market value adjustments. Operating lease liabilities are calculated using the prevailing index or rate at lease commencement for such leases.
The following table presents the components of our ROU assets and their classification in our Balance Sheet at September 30, 2023:
Component of Lease BalancesBalance Sheet Line ItemsSeptember 30,
2023		June 30, 2023
in thousands
Assets:
Operating lease assetsOperating lease assets$20,454 $21,210 
Finance lease assetsProperty and equipment, net15,276 16,378 
Total leased assets$35,730 $37,588 
The following table presents the components of our lease cost and the classification of such costs in our Statements of Operations for the three months ended September 30, 2023:
Three Months Ended September 30,
Component of Lease CostStatements of Operations Line Items 20232022
in thousands
Operating lease costCost of care excluding depreciation and amortization and Corporate, general and administrative$1,118 $1,025 
Finance lease expense:
Amortization of leased assetsDepreciation and amortization1,102 769 
Interest on lease liabilitiesInterest expense, net33 317 
Variable lease costCost of care excluding depreciation and amortization and Corporate, general and administrative— — 
Short-term lease costCost of care excluding depreciation and amortization and Corporate, general and administrative38 11 
Total lease expense$2,291 $2,122 
The following table includes the weighted-average lease terms and discount rates for operating and finance leases as of September 30, 2023:
Weighted average remaining lease term:September 30,
2023		September 30,
2022
Operating leases7.7 years8.8 years
Finance leases3.7 years3.8 years
Weighted average discount rate:September 30,
2023		September 30,
2022
Operating leases6.62 %6.61 %
Finance leases7.87 %8.76 %
The following table includes the future maturities of lease payments for operating leases and finance leases for periods subsequent to September 30, 2023:
in thousandsOperating
Lease		Finance
Lease		Total
Amount remaining in 2024$3,681 $4,531 $8,212 
20254,358 5,279 9,637 
20264,285 4,254 8,539 
20273,981 3,557 7,538 
20283,139 1,767 4,906 
Thereafter7,033 — 7,033 
Total lease payments26,477 19,388 45,865 
Less liability accretion / imputed interest(4,820)(2,728)(7,548)
Total lease liabilities21,657 16,660 38,317 
Less: Current lease liabilities3,577 4,612 8,189 
Total long-term lease liabilities$18,080 $12,048 $30,128