Leases

6 Months Ended

Dec. 31, 2021

The Company records right-of-use "ROU" assets and operating lease liabilities on the consolidated balance sheet 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 non-lease 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. Income from subleased properties is recognized and presented as a reduction of selling, general and administrative expenses in the Company's consolidated statements of operations. The leases have remaining terms of one to fifteen years.

The following table sets forth the components of the Company's lease cost for the three and six months ended December 31, 2021 and December 31, 2020:


	Three Months Ended December 31,				Six Months Ended December 31,
($ in millions)	2021		2020		2021		2020
Operating lease cost	$	2.5	$	3.2	$	5.0	$	6.8
Short-term lease cost	0.8		0.7		1.7		1.6
Variable lease cost	0.1		0.1		0.3		0.2
Sublease income	(0.2)		(0.2)		(0.5)		(0.3)
Total lease cost	$	3.2	$	3.8	$	6.5	$	8.3

Operating cash flow payments from operating leases	$	2.8	$	3.3	$	5.6	$	6.9
Non-cash ROU assets obtained in exchange for lease obligations	$	15.1	$	—	$	15.5	$	1.4

The following table sets forth the Company's weighted-average remaining lease term and weighted-average discount rate at December 31, 2021 and June 30, 2021:


	December 31, 2021		June 30, 2021
Weighted-average remaining lease term - operating leases	8.8 years		8.4 years
Weighted-average discount rate - operating leases	3.5	%	4.0	%

The following table sets forth the Company's ROU assets and lease liabilities at December 31, 2021 and June 30, 2021:


($ in millions)	December 31, 2021		June 30, 2021
Operating lease assets:
Other assets	$	46.7	$	34.3
Operating lease liabilities:
Accrued liabilities	$	9.7	$	9.0
Other liabilities	46.9		35.5
Total operating lease liabilities	$	56.6	$	44.5

Minimum lease payments for operating leases expiring subsequent to December 31, 2021 are as follows:


($ in millions)	December 31, 2021
2022 (remaining period of fiscal year)	$	5.3
2023	10.8
2024	8.5
2025	6.2
2026	5.0
Thereafter	30.9
Total future minimum lease payments	66.7
Less imputed interest	(10.1)
Total	$	56.6