Leases

12 Months Ended

Jun. 30, 2023

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. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. 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, Leases is as follows:


		As of June 30,
Classification		2023		2022
Assets
Right-of-use assets	Other assets	$	8,808	$	10,659

Liabilities
Current operating lease liabilities	Accrued expenses	$	2,324	$	2,121
Long-term operating lease liabilities	Other liabilities	7,843		10,062
Total lease liabilities		$	10,167	$	12,183


		Fiscal Year Ended June 30,
Classification		2023		2022		2021
Operating lease costs (1)	Cost of sales	$	2,686	$	2,611	$	2,170
	Selling and marketing, and general and administrative	878		857		854

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	2,555		2,517		2,617

(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, 2023 and 2022 was 4.60 years and 5.53 years, respectively. As of June 30, 2023 and 2022, the weighted average discount rate determined based on the Company's incremental borrowing rate is 3.67% and 3.63%, respectively.

Future annual minimum lease payments for the following fiscal years as of June 30, 2023 are as follows:


	Amount
2024	$	2,649
2025	2,347
2026	2,255
2027	2,255
2028	1,504
2029 and thereafter	—
Total	11,010
Less imputed interest	(843)
Present value of lease liabilities	$	10,167