Leases

12 Months Ended

Jun. 30, 2022

The Company records 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 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.

Operating lease cost was $13.5 million, $14.8 million and $14.8 million for the fiscal years ended June 30, 2022, 2021 and 2020, respectively. The following table sets forth the components of the Company's lease cost for the twelve months ended June 30, 2022 and 2021:


	Years Ended June 30,
($ in millions)	2022		2021
Operating lease cost	$	10.9	$	12.4
Short-term lease cost	3.5		2.9
Variable lease cost	0.1		0.2
Sublease income	(1.0)		(0.7)
Total lease cost	$	13.5	$	14.8

Operating cash flow payments from operating leases	$	11.4	$	13.1
Non-cash ROU assets obtained in exchange for lease obligations	$	16.5	$	2.0

The leases have a remaining term of one to fifteen years. The following table sets forth the Company's weighted-average remaining lease term and weighted-average discount rate at June 30, 2022 and June 30, 2021.


Weighted-average remaining lease term - operating leases	8.5 years		8.4 years
Weighted-average discount rate - operating leases	3.7	%	4.0	%

The following table sets forth the Company's ROU assets and lease liabilities at June 30, 2022 and June 30, 2021:


	June 30,
($ in millions)	2022		2021
Operating lease assets:
Other assets	$	42.9	$	34.3
Operating lease liabilities:
Other accrued liabilities	$	9.9	$	9.0
Other liabilities	42.7		35.5
Total operating lease liabilities	$	52.6	$	44.5

Minimum lease payments for operating leases expiring subsequent to June 30, 2022, are as follows:


($ in millions)	June 30, 2022
2023	$	11.6
2024	8.9
2025	6.2
2026	5.0
2027	5.0
Thereafter	25.4
Total future minimum lease payments	62.1
Less imputed interest	9.5
Total	$	52.6