OPERATING LEASES

12 Months Ended

Jun. 30, 2013

Operating Leases

Note 24. OPERATING LEASES (In Thousands)

Operating leases arise from the leasing of the Company’s commercial and residential real estate investment property. 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 $112 and $77 for fiscal years 2013 and 2012, respectively.

Future minimum rental income in China to be received from fiscal 2014 to fiscal 2019 on non-cancellable operating leases is contractually due as follows as of June 30, 2013:

For the Year Ended June 30,	Amount
2014	$	174
2015		112
2016		123
2017		133
2018		144
2019		6
	$	692