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Leases | 12 Months Ended
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Jun. 30, 2021
Leases [Abstract] |
Leases | Leases On July 1, 2019, we adopted new lease accounting guidance, which requires a lessee to record right-of-use assets and lease liabilities based upon the present value of the lease payments for operating leases and finance leases. We used the alternate transition method whereby companies could recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than restating comparative periods, but we did not record a cumulative-effect adjustment from initially applying the standard. General Lease Description We have operating leases with initial noncancelable lease terms in excess of one year covering the rental of various facilities and equipment. Certain of these leases contain renewal options and some provide options to purchase during the lease term. Our operating leases include leases for real estate for some of our office and manufacturing facilities as well as manufacturing and non-manufacturing equipment used in our business. The remaining lease terms for these operating leases range from 1 year to 7 years. We have finance leases with initial noncancelable lease terms in excess of one year covering the rental of various facilities and equipment. These leases are generally for non-manufacturing equipment used in our business and warehouse facilities. The remaining lease terms for these finance leases range from 2 years to 4 years. Significant Assumptions and Judgments Contract Contains a Lease In evaluating our contracts to determine whether a contract is or contains a lease, we considered the following: •Whether explicitly or implicitly identified assets have been deployed in the contract; and •Whether we obtain substantially all of the economic benefits from the use of that underlying asset, and we can direct how and for what purpose the asset is used during the term of the contract. Allocation of Consideration In determining how to allocate consideration between lease and non-lease components in a contract that was deemed to contain a lease, we used judgment and consistent application of assumptions to reasonably allocate the consideration. Options to Extend or Terminate Leases We have leases which contain options to extend or terminate the leases. On a lease-by-lease basis, we have determined if the extension should be considered reasonably certain to be exercised and thus a right-of-use asset and a lease liability should be recorded. Discount Rate The discount rate for leases, if not explicitly stated in the lease, is the incremental borrowing rate, which is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. We use a discount rate to calculate the present value of lease liabilities. In the development of the discount rate, we consider our internal borrowing rate, treasury security rates, collateral and credit risk specific to us, and our lease portfolio characteristics. As of June 30, 2021 and 2020, the weighted-average discount rate of our operating leases was 2.9% and 3.0%, respectively. As of June 30, 2021 and 2020, the weighted-average discount rate of our finance leases was 1.9% and 3.6%, respectively. Practical Expedients and Accounting Policy Elections We elected the package of practical expedients that permits us not to reassess our prior conclusions about lease identification, lease classification and initial direct costs and made an accounting policy election to exclude short-term leases with an initial term of 12 months or less from our Consolidated Balance Sheets. Amounts Recognized in the Financial Statements The components of lease expense in each of the years ended June 30 have been provided as follows:
| 2021 |  | 2020
Operating lease cost in Cost of Sales and Selling, General and Administrative Expenses | $ | 8,300 |  |  | $ | 8,726 |
Finance lease cost: |  |  |
Amortization of assets in Cost of Sales | $ | 1,571 |  |  | $ | 335 |
Interest on lease liabilities in Other, Net | 156 |  |  | 73 |
Total finance lease cost | $ | 1,727 |  |  | $ | 408 |
Short-term lease cost in Cost of Sales and Selling, General and Administrative Expenses | 2,652 |  |  | 2,405 |
Total net lease cost | $ | 12,679 |  |  | $ | 11,539 |
Supplemental balance sheet information related to leases at June 30 is as follows:
| 2021 |  | 2020 |  |
Operating Leases |  |  |  |  |
Operating Lease Right-Of-Use Assets | $ | 22,455 |  |  | $ | 22,977 |  |  |
Current operating lease liabilities in Accrued Liabilities | $ | 6,861 |  |  | $ | 6,766 |  |  |
Noncurrent Operating Lease Liabilities | 17,228 |  |  | 17,893 |  |  |
Total operating lease liabilities | $ | 24,089 |  |  | $ | 24,659 |  |  |
Finance Leases |  |  |  |  |
Finance lease right-of-use assets in Property, Plant and Equipment-Net | $ | 9,212 |  |  | $ | 2,346 |  |  |
Current finance lease liabilities in Accrued Liabilities | $ | 2,517 |  |  | $ | 571 |  |  |
Noncurrent finance lease liabilities in Other Noncurrent Liabilities | 6,667 |  |  | 1,580 |  |  |
Total finance lease liabilities | $ | 9,184 |  |  | $ | 2,151 |  |  |
Supplemental cash flow information related to leases in each of the years ended June 30 is as follows:
| 2021 |  | 2020 |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 8,501 |  |  | $ | 8,923 |  |  |
Operating cash flows from finance leases | $ | 156 |  |  | $ | 73 |  |  |
Financing cash flows from finance leases | $ | 2,002 |  |  | $ | 432 |  |  |
Supplemental noncash information on operating lease liabilities arising from obtaining right-of-use assets | $ | 7,005 |  |  | $ | 5,611 |  |  |
Supplemental noncash information on operating lease liabilities removed due to purchase of leased asset | $ | — |  |  | $ | 5,765 |  |  |
Supplemental noncash information on finance lease liabilities arising from obtaining right-of-use assets | $ | 9,035 |  |  | $ | 631 |  |  |
As of June 30, 2021, the maturities of lease liabilities were as follows:
| Operating Leases |  | Finance Leases
2022 | $ | 7,466 |  |  | $ | 2,666 |
2023 | 5,809 |  |  | 2,475 |
2024 | 4,943 |  |  | 2,095 |
2025 | 2,910 |  |  | 1,973 |
2026 | 2,654 |  |  | 306 |
Thereafter | 1,949 |  |  | — |
Total minimum payments | $ | 25,731 |  |  | $ | 9,515 |
Less amount representing interest | (1,642) |  |  | (331) |
Present value of lease obligations | $ | 24,089 |  |  | $ | 9,184 |
As of June 30, 2021 and 2020, the weighted-average remaining term of our operating leases was 4.4 years and 4.7 years, respectively. As of June 30, 2021 and 2020, the weighted-average remaining term of our finance leases was 4.0 years and 3.8 years, respectively.

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- Definition The entire disclosure for operating leases and finance leases of lessee. Includes, but is not limited to, description of operating and finance leases and maturity analysis of operating lease liability and finance lease liability. + References No definition available. + Details
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