Leases

12 Months Ended

Jun. 30, 2022

The Company leases certain manufacturing facilities, warehouses, office space, land, and equipment. The Company determines if a contract is a lease or contains an embedded lease at the inception of the agreement. The Company recorded right-of-use assets, included in other assets on the consolidated balance sheet, totaling $16,142 as of July 1, 2019. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The Company does not separate non-lease components from the lease components to which they relate, and instead accounts for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. The Company's lease liabilities do not include future lease payments related to options to extend or terminate lease agreements as it is not reasonably certain those options will be exercised.

Other information concerning the Company's operating leases accounted for under ASC Topic 842 is as follows:


		As of June 30,
Classification		2022		2021
Assets
Right-of-use assets	Other assets	$	10,659	$	12,606

Liabilities
Current operating lease liabilities	Accrued expenses	$	2,121	$	2,027
Long-term operating lease liabilities	Other liabilities	10,062		12,198
Total lease liabilities		$	12,183	$	14,225


		Fiscal Year Ended June 30,
Classification		2022		2021		2020
Operating lease costs (1)	Cost of sales	$	2,611	$	2,170	$	1,966
	Selling and marketing, and general and administrative	857		854		863

Sublease income	Other expense (income), net	(38)		(38)		(38)

Cash paid for amounts included in the measurement of operating lease liabilities	Cash flows from operating activities	2,517		2,617		2,606

(1) Includes short-term leases, which are insignificant, and are not included in the lease liability.

The lease liability for operating leases that contain variable escalating rental payments with scheduled increases that are based on the lesser of a stated percentage increase or the cumulative increase in an index, are determined using the stated percentage increase.

The weighted average remaining lease term for the fiscal year ended June 30, 2022 and 2021 was 5.53 years and 6.44 years, respectively. As of June 30, 2022 and 2021, the weighted average discount rate determined based on the Company's incremental borrowing rate is 3.63%, respectively.

Future annual minimum lease payments for the following fiscal years as of June 30, 2022 are as follows:


	Amount
2023	$	2,522
2024	2,579
2025	2,308
2026	2,255
2027	2,255
2028 and thereafter	1,505
Total	13,424
Less imputed interest	(1,241)
Present value of lease liabilities	$	12,183