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Leases | 9 Months Ended
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Mar. 31, 2020
Leases [Abstract] |
Leases | Leases The Company has operating leases for certain manufacturing sites, office space, warehouses, land, vehicles and equipment. Most leases include the option to renew, with renewal terms that can extend the lease term from one to five years or more. Right-of-use lease assets and lease liabilities are recognized at the commencement date based on the present value of the remaining lease payments over the lease term, which includes renewal periods the Company is reasonably certain to exercise. Short term leases with a term of twelve months or less, including reasonably certain holding periods, are not recorded on the balance sheet. The Company's leases do not contain any material residual value guarantees or material restrictive covenants. At March 31, 2020, the Company does not have material lease commitments that have not commenced. The components of lease expense were as follows:
(in millions) |  | Three Months Ended March 31, |  | Nine Months Ended March 31,
Statement of Income Location |  | 2020 |  |
Operating leases |  |  |  |
Cost of products sold |  | $ | 22.4 |  |  | $ | 67.9 |
Selling, general and administrative expenses |  | 5.6 |  |  | 17.0 |
Finance leases |  |  |  |
Amortization of right-of-use assets |  | 0.6 |  |  |  | 1.2 |
Interest on lease liabilities |  | 0.2 |  |  | 0.5 |
Total lease cost (1) |  | $ | 28.8 |  |  | $ | 86.6 |
(1)Includes short-term leases and variable lease costs, which are immaterial. Supplemental balance sheet information related to leases was as follows:
(in millions) |  | Balance Sheet Location |  | March 31, 2020
Assets |  |  |  |
Operating lease assets |  | Operating lease assets |  | $ | 525.8 |
Finance lease assets (1) |  | Property, plant and equipment, net |  | 32.0 |
Total lease assets |  |  |  | $ | 557.8 |
Liabilities |  |  |  |
Operating leases: |  |  |  |
Current operating lease liabilities |  | Other current liabilities |  | $ | 83.6 |
Non-current operating lease liabilities |  | Operating lease liabilities |  | 465.6 |
Finance leases: |  |  |  |
Current finance lease liabilities |  | Current portion of long-term debt |  | 1.8 |
Non-current finance lease liabilities |  | Long-term debt, less current portion |  | 32.1 |
Total lease liabilities |  |  |  | $ | 583.1 |
(1)Finance lease assets are recorded net of accumulated amortization of $8.7 million at March 31, 2020. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate as of the commencement date to determine the present value of lease payments. Supplemental cash flow information related to leases was as follows:
|  | Nine Months Ended March 31,
(in millions) |  | 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |
Operating cash flows from operating leases |  | $ | 80.5 |
Operating cash flows from finance leases |  | $ | 0.4 |
Financing cash flows from finance leases |  | $ | 0.7 |
Lease assets obtained in exchange for new lease obligations: |  |
Operating leases |  | $ | 52.3 |
Finance leases |  | $ | 31.3 |
Maturities of lease liabilities were as follows:
(in millions) |  | Operating Leases |  | Finance Leases
Remainder of fiscal 2020 |  | $ | 26.9 |  |  | $ | 0.9 |
Fiscal 2021 |  | 95.5 |  |  | 2.9 |
Fiscal 2022 |  | 84.9 |  |  | 2.8 |
Fiscal 2023 |  | 73.3 |  |  | 2.6 |
Fiscal 2024 |  | 63.1 |  |  | 2.6 |
Thereafter |  | 319.6 |  |  | 34.9 |
Total lease payments |  | 663.3 |  |  | 46.7 |
Less: imputed interest |  | 114.1 |  |  | 12.8 |
Present value of lease liabilities |  | $ | 549.2 |  |  | $ | 33.9 |
The Company’s future minimum lease commitments as of June 30, 2019, under Accounting Standard Codification Topic 840, the predecessor to Topic 842, are as follows:
(in millions) |  | Operating Leases
Fiscal 2020 |  | $ | 97.6 |
Fiscal 2021 |  | 90.4 |
Fiscal 2022 |  | 77.7 |
Fiscal 2023 |  | 67.3 |
Fiscal 2024 |  | 55.9 |
Thereafter |  | 301.8 |
Total minimum obligations |  | $ | 690.7 |
The weighted average remaining lease term and discount rate are as follows:
|  | March 31, 2020
Weighted average remaining lease term (in years): |  |
Operating leases |  | 9.8
Finance leases |  | 18.2
Weighted average discount rate: |  |
Operating Leases |  | 3.9 | %
Finance leases |  | 4.0 | %

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- References No definition available. + Details
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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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