Leases

12 Months Ended

Jun. 30, 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 $53.4 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. On the lease commencement date, the Company measures and records a ROU asset and lease liability equal to the present value of the remaining lease payments, discounted using the rate implicit in the lease (or if that rate cannot be readily determined, the Company’s incremental borrowing rate). Operating leases are included in other assets, accrued liabilities (current) and other liabilities (long-term) on the consolidated balance sheets.

The Company elected the practical expedient to not separate lease components from nonlease components for all asset classes. The Company recognizes lease expense in the consolidated statements of operations on a straight-line basis over the lease term. The Company elected to not recognize ROU assets and lease liabilities for short-term leases with an initial term of 12 months or less for all asset classes. Leases with the option to extend their term or terminate early are reflected in the lease term when it is reasonably certain that the Company will exercise such options. 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.

Operating lease cost was $14.8 million, $16.1 million and $13.4 million for the fiscal years ended June 30, 2020, 2019 and 2018, respectively. The following table sets forth the components of the Company’s lease cost for the twelve months ended June 30, 2020:



	Year Ended June 30,
($ in millions)	2020
Operating lease cost	$	14.4
Variable lease cost	0.4
Total lease cost	$	14.8

Operating cash flow payments from operating leases	$	14.2
Non-cash ROU assets obtained in exchange for lease obligations	$	19.4
Weighted-average remaining lease term - operating leases	8.1 years
Weighted-average discount rate - operating leases	3.9		%

The following table sets forth the Company’s ROU assets and lease liabilities at June 30, 2020:



($ in millions)	June 30, 2020
Operating lease assets:
Other assets	$	52.0
Operating lease liabilities:
Other accrued liabilities	$	11.5
Other liabilities	50.3
Total operating lease liabilities	$	61.8

Minimum lease payments for operating leases expiring subsequent to June 30, 2020 are as follows:



($ in millions)	June 30, 2020
2021	$	13.6
2022	11.7
2023	10.0
2024	7.9
2025	5.1
Thereafter	25.5
Total future minimum lease payments	73.8
Less imputed interest	(12.0		)
Total	$	61.8

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 at adoption. 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