Leases

9 Months Ended

Mar. 31, 2020

As a result of adoption of ASU 2016-02, Leases, the Company recorded ROU assets and operating lease liabilities, each in the amount of $53.8 million, on the consolidated balance sheet as of July 1, 2019 for several types of operating leases, including land and buildings, equipment (e.g. trucks and forklifts), vehicles, and computer equipment. These amounts are equivalent to the aggregate future lease payments on a discounted basis. The discount rate applied to these leases is the Company’s incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable lease payments are not presented as part of the ROU asset or lease liability. The leases have remaining terms of one to seventeen years.

The following table sets forth the components of the Company’s lease cost for the three and nine months ended March 31, 2020:



	Three Months Ended March 31,			Nine Months Ended March 31,
($ in millions)	2020			2020
Operating lease cost	$	3.8		$	10.8
Short-term lease cost	0.9			2.7
Variable lease cost	0.1			0.3
Total lease cost	$	4.8		$	13.8

Operating cash flow payments from operating leases	$	3.9		$	10.5
Non-cash ROU assets obtained in exchange for lease obligations	$	5.2		$	18.7
Weighted-average remaining lease term - operating leases	8.2 years			8.2 years
Weighted-average discount rate - operating leases	3.9		%	3.9		%

The following table sets forth the Company’s ROU assets and lease liabilities at March 31, 2020:



($ in millions)	March 31, 2020
Operating lease assets:
Other assets	$	61.9
Operating lease liabilities:
Other accrued liabilities	$	11.7
Other liabilities	52.6
Total operating lease liabilities	$	64.3

Minimum lease payments for operating leases expiring subsequent to March 31, 2020 are as follows:



($ in millions)	March 31, 2020
2020 (remaining period of fiscal year)	$	3.7
2021	13.3
2022	11.5
2023	9.7
2024	7.8
Thereafter	30.5
Total future minimum lease payments	76.5
Less imputed interest	(12.2		)
Total	$	64.3

The below table as of June 30, 2019 is carried forward, including certain amounts that were historically included in the table as a result of the historical lease term conclusions but were not included in the initial ROU asset and lease liability measurement as of June 30, 2019. Minimum lease payments for operating leases under ASC 840 expiring subsequent to June 30, 2019 were as follows:



($ in millions)	June 30, 2019
2020	$	12.7
2021	10.4
2022	8.3
2023	6.6
2024	5.0
Thereafter	23.5
Total future minimum lease payments	$	66.5