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Leases (Notes)

9 Months Ended

Mar. 31, 2020

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 equipment. 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 10 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	March 31, 2020
(In thousands)
Operating lease assets	Right-of-use operating lease assets	$	21,789
Finance lease assets	Property, plant and equipment, net	22
Total lease assets		$	21,811

Operating lease liabilities - current	Operating lease liabilities - current	$	6,031
Operating lease liabilities - noncurrent	Operating lease liabilities - noncurrent	16,010
Finance lease liabilities	Other long-term liabilities	22
Total lease liabilities		$	22,063

The components of lease expense are as follows:



		Three Months Ended March 31,		Nine Months Ended March 31,
	Classification	2020		2020
(In thousands)
Operating lease expense	General and administrative expenses and cost of goods sold	$	1,497	$	3,858
Finance lease expense:
Amortization of finance lease assets	General and administrative expenses	13		39
Interest on finance lease liabilities	Interest expense	—		1
Total lease expense		$	1,510	$	3,898



	March 31, 2020
(In thousands)	Operating Leases			Finance Leases
Maturities of lease liabilities are as follows:
2020	$	1,532		$	13
2021	5,764			9
2022	4,357			—
2023	3,711			—
2024	3,375			—
Thereafter	6,272			—
Total lease payments	25,011			22
Less: interest	(2,970		)	—
Total lease obligations	$	22,041		$	22

Lease term and discount rate:



	March 31, 2020
Weighted-average remaining lease terms (in years):
Operating lease	8.5
Finance lease	0.4

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

Other Information:



	Nine Months Ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,585
Operating cash flows from finance leases	$	1
Financing cash flows from finance leases	$	38

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 expense paid for the fiscal year 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