OPERATING LEASES

12 Months Ended

Jun. 30, 2012

Operating Leases

Note 27. OPERATING LEASES (In Thousands)

Operating leases arise from the leasing of the Company’s commercial and residential real estate investment property in China. Initial lease terms generally range from 12 to 60 months. Depreciation expense for assets subject to operating leases is taken into account primarily on the straight-line method over a period of twenty years in amounts necessary to reduce the carrying amount of the asset to its estimated residual value. Depreciation expense relating to the property held as investments in operating leases was $77 and $106 for fiscal years 2012 and 2011, respectively.

Investments in operating leases as at June 30:

	For the Year Ended June 30,
	2012			2011
Investment property in China	$	1,238		$	1,416
Addition during the year		633			--
Depreciation charge for the year		(77	)		(178	)
Translation adjustment		21			--
Net investment in operating leases	$	1,815		$	1,238

Future minimum rental income to be received from fiscal 2013 to fiscal 2015 on non-cancelable operating leases are contractually due as follows as of June 30, 2012:

For the Year Ended June 30,	Amount
2013	$	126
2014		46
2015		3
	$	175