Leases (Notes)

3 Months Ended

Sep. 30, 2019

The Company makes a determination if an arrangement constitutes a lease at inception; and categorizes the lease as either an operating or finance lease. Operating leases are included in right-of-use operating lease assets and operating lease liabilities in the Company's Condensed Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, net and other long-term liabilities in the Condensed Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets.

The Company has entered into leases for building facilities, vehicles and other equipments. The Company’s leases have remaining contractual terms of up to 10 years, some of which have options to extend the lease for up to 20 years. For purposes of calculating operating lease liabilities, lease terms are deemed not to include options to extend the lease termination until it is reasonably certain that the Company will exercise that option. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental unaudited consolidated balance sheet information related to leases is as follows:



	Classification	September 30, 2019
(In thousands)
Operating lease assets	Right-of-use operating lease assets	$	16,349
Finance lease assets	Property, plant and equipment, net	47
Total lease assets		$	16,396

Operating lease liabilities - current	Operating lease liabilities - current	$	4,332
Operating lease liabilities - noncurrent	Operating lease liabilities - noncurrent	12,084
Finance lease liabilities	Other long-term liabilities	48
Total lease liabilities		$	16,464

The components of lease expense are as follows:



		Three Months Ended September 30,
	Classification	2019
(In thousands)
Operating lease expense	General and administrative expenses and cost of goods sold	$	1,109
Finance lease expense:
Amortization of finance lease assets	General and administrative expenses	13
Interest on finance lease liabilities	Interest expense	1
Total lease expense		$	1,123



	September 30, 2019
(In thousands)	Operating Leases			Finance Leases
Maturities of lease liabilities are as follows:
2020	$	3,266		$	40
2021	3,802			9
2022	2,812			—
2023	2,268			—
2024	2,095			—
Thereafter	4,591			—
Total lease payments	18,834			49
Less: interest	(2,418		)	(1		)
Total lease obligations	$	16,416		$	48

Lease term and discount rate:



	September 30, 2019
Weighted-average remaining lease terms (in years):
Operating lease	9.0
Finance lease	0.9

Weighted-average discount rate:
Operating lease	4.50	%
Finance lease	4.50	%

Other Information:



	Three Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,041
Operating cash flows from finance leases	$	1
Financing cash flows from finance leases	$	13

Leased assets obtained in exchange for new finance lease liabilities	$	—
Leased assets obtained in exchange for new operating lease liabilities	$	—

Disclosures related to periods prior to adoption of ASU 2016-02

Rent expenses paid for the fiscal years ended June 30, 2019, was $6.4 million.

The minimum annual payments under operating and capital leases as of June 30, 2019 are as follows:



(In thousands)	Operating Lease Obligations		Capital Lease Obligations
Year Ended June 30,
2020	$	4,434	$	36
2021	3,238		1
2022	2,472		—
2023	2,131		—
2024	2,025		—
Thereafter	4,389		—
Total minimum lease payments	$	18,689	37
Less: imputed interest (0.82% to 10.66%)			(2		)
Present value of future minimum lease payments			35
Less: current portion			(34		)
Long-term capital lease obligations			$	1

Leases