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LEASES

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

LEASES

LEASES

The Company leases office space, warehouse and distribution facilities, manufacturing equipment and vehicles primarily in North America and Europe. The Company determines if an arrangement is or contains a lease at inception. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company’s lease agreements generally do not contain residual value guarantees or material restrictive covenants. A limited number of lease agreements include rental payments adjusted periodically for inflation.

Some of the Company’s leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index changes are recorded as variable lease expense in the period incurred. The Company does not have any related party leases, and sublease transactions are de minimis.

The components of lease expenses for the three and nine months ended March 31, 2021 were as follows:

			Three Months Ended												Nine Months Ended
			March 31, 2021						March 31, 2020						March 31, 2021						March 31, 2020
Operating lease expenses			$	4,129					$	4,545					$	12,290					$	14,034
Finance lease expenses			72						272						318						761
Variable lease expenses			247						633						1,204						1,873
Short-term lease expenses			458						490						1,701						1,349
Total lease expenses			$	4,906					$	5,940					$	15,513					$	18,017

Supplemental balance sheet information related to leases was as follows:

Leases						Classification						March 31, 2021						June 30, 2020
Assets
Operating lease ROU assets, net						Operating lease right-of-use assets						$	90,130					$	88,165
Finance lease ROU assets, net						Property, plant and equipment, net						615						691
Total leased assets												$	90,745					$	88,856
Liabilities
Current
Operating						Accrued expenses and other current liabilities						$	11,086					$	12,338
Finance						Current portion of long-term debt						245						308
Non-current
Operating						Operating lease liabilities, noncurrent portion						83,564						82,962
Finance						Long-term debt, less current portion						376						316
Total lease liabilities												$	95,271					$	95,924

Additional information related to leases is as follows:

			Nine Months Ended
			March 31, 2021						March 31, 2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$	12,954					$	12,856
Operating cash flows from finance leases			$	13					$	18
Financing cash flows from finance leases			$	285					$	372
ROU assets obtained in exchange for lease obligations (a):
Operating leases			$	18,349					$	94,389
Finance leases			$	671					$	1,092
Weighted average remaining lease term:
Operating leases			10.0 years						8.4 years
Finance leases			4.1 years						2.3 years
Weighted average discount rate:
Operating leases			3.2		%				2.7		%
Finance leases			3.9		%				2.9		%

(a) ROU assets obtained in exchange for lease obligations includes leases which commenced, were modified or terminated. The balance for the nine months ended March 31, 2020 also included $87,414 relating to the impact of the adoption of ASU 2016-02 effective July 1, 2019.

Maturities of lease liabilities as of March 31, 2021 were as follows:

Fiscal Year			Operating leases						Finance leases						Total
2021 (remainder of year)			$	2,665					$	71					$	2,736
2022			14,358						246						14,604
2023			13,596						133						13,729
2024			11,878						51						11,929
2025			10,663						51						10,714
Thereafter			60,084						127						60,211
Total lease payments			113,244						679						113,923
Less: Imputed interest			18,594						58						18,652
Total lease liabilities			$	94,650					$	621					$	95,271

Maturities of lease liabilities as of June 30, 2020 were as follows:

Fiscal Year			Operating leases						Finance leases						Total
2021			$	14,781					$	308					$	15,089
2022			13,798						205						14,003
2023			12,833						95						12,928
2024			10,941						18						10,959
2025			9,521						6						9,527
Thereafter			51,545						—						51,545
Total lease payments			113,419						632						114,051
Less: Imputed interest			18,119						8						18,127
Total lease liabilities			$	95,300					$	624					$	95,924

LEASES

LEASES

The Company leases office space, warehouse and distribution facilities, manufacturing equipment and vehicles primarily in North America and Europe. The Company determines if an arrangement is or contains a lease at inception. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company’s lease agreements generally do not contain residual value guarantees or material restrictive covenants. A limited number of lease agreements include rental payments adjusted periodically for inflation.

Some of the Company’s leases contain variable lease payments, which are expensed as incurred unless those payments are based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement and included in the measurement of the lease liability; thereafter, changes to lease payments due to rate or index changes are recorded as variable lease expense in the period incurred. The Company does not have any related party leases, and sublease transactions are de minimis.

The components of lease expenses for the three and nine months ended March 31, 2021 were as follows:

			Three Months Ended												Nine Months Ended
			March 31, 2021						March 31, 2020						March 31, 2021						March 31, 2020
Operating lease expenses			$	4,129					$	4,545					$	12,290					$	14,034
Finance lease expenses			72						272						318						761
Variable lease expenses			247						633						1,204						1,873
Short-term lease expenses			458						490						1,701						1,349
Total lease expenses			$	4,906					$	5,940					$	15,513					$	18,017

Supplemental balance sheet information related to leases was as follows:

Leases						Classification						March 31, 2021						June 30, 2020
Assets
Operating lease ROU assets, net						Operating lease right-of-use assets						$	90,130					$	88,165
Finance lease ROU assets, net						Property, plant and equipment, net						615						691
Total leased assets												$	90,745					$	88,856
Liabilities
Current
Operating						Accrued expenses and other current liabilities						$	11,086					$	12,338
Finance						Current portion of long-term debt						245						308
Non-current
Operating						Operating lease liabilities, noncurrent portion						83,564						82,962
Finance						Long-term debt, less current portion						376						316
Total lease liabilities												$	95,271					$	95,924

Additional information related to leases is as follows:

			Nine Months Ended
			March 31, 2021						March 31, 2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$	12,954					$	12,856
Operating cash flows from finance leases			$	13					$	18
Financing cash flows from finance leases			$	285					$	372
ROU assets obtained in exchange for lease obligations (a):
Operating leases			$	18,349					$	94,389
Finance leases			$	671					$	1,092
Weighted average remaining lease term:
Operating leases			10.0 years						8.4 years
Finance leases			4.1 years						2.3 years
Weighted average discount rate:
Operating leases			3.2		%				2.7		%
Finance leases			3.9		%				2.9		%

(a) ROU assets obtained in exchange for lease obligations includes leases which commenced, were modified or terminated. The balance for the nine months ended March 31, 2020 also included $87,414 relating to the impact of the adoption of ASU 2016-02 effective July 1, 2019.

Maturities of lease liabilities as of March 31, 2021 were as follows:

Fiscal Year			Operating leases						Finance leases						Total
2021 (remainder of year)			$	2,665					$	71					$	2,736
2022			14,358						246						14,604
2023			13,596						133						13,729
2024			11,878						51						11,929
2025			10,663						51						10,714
Thereafter			60,084						127						60,211
Total lease payments			113,244						679						113,923
Less: Imputed interest			18,594						58						18,652
Total lease liabilities			$	94,650					$	621					$	95,271

Maturities of lease liabilities as of June 30, 2020 were as follows:

Fiscal Year			Operating leases						Finance leases						Total
2021			$	14,781					$	308					$	15,089
2022			13,798						205						14,003
2023			12,833						95						12,928
2024			10,941						18						10,959
2025			9,521						6						9,527
Thereafter			51,545						—						51,545
Total lease payments			113,419						632						114,051
Less: Imputed interest			18,119						8						18,127
Total lease liabilities			$	95,300					$	624					$	95,924

X

- References

No definition available.

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X

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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X

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI http://asc.fasb.org/subtopic&trid=77888251

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