Leases

12 Months Ended

Jun. 30, 2020

We lease certain machinery and plant equipment, office space, and production and warehouse facilities under non-cancelable operating leases that expire on various dates through 2034. Our finance leases primarily relate to machinery and plant equipment.

The following table presents the classification of right-of-use assets and lease liabilities as of June 30, 2020:



Leases	Consolidated Balance Sheet Classification	June 30, 2020

Assets:
Operating right-of-use assets	Operating lease assets, net	$	156,258
Finance right-of-use assets	Property, plant, and equipment, net	20,842
Total lease assets		$	177,100
Liabilities:
Current:
Operating lease liabilities	Operating lease liabilities, current	$	41,772
Finance lease liabilities	Other current liabilities	8,055
Non-current:
Operating lease liabilities	Operating lease liabilities, non-current	128,963
Finance lease liabilities	Other liabilities	18,617
Total lease liabilities		$	197,407

The following table represents the lease expenses for the year ended June 30, 2020:



	Year Ended
	June 30, 2020
Operating lease expense	$	43,058
Finance lease expense:
Amortization of finance lease assets	5,766
Interest on lease liabilities	698
Variable lease expense	10,775
Less: sublease income	(3,545		)
Net operating and finance lease cost	$	56,752

Future minimum lease payments under non-cancelable leases as of June 30, 2020 were as follows:



Payments Due by Period	Operating lease obligations			Finance lease obligations			Total lease obligations
Less than 1 year	$	42,320		$	8,031		$	50,351
2 years	34,306			7,606			41,912
3 years	27,663			5,142			32,805
4 years	22,606			3,277			25,883
5 years	16,511			1,921			18,432
Thereafter	43,089			1,796			44,885
Total	186,495			27,773			214,268
Less: present value discount	(15,760		)	(1,101		)	(16,861		)
Lease liability	$	170,735		$	26,672		$	197,407

As previously disclosed in our 2019 Annual Report on Form 10-K and under the previous lease accounting standard, the following is a summary of future minimum lease payments under non-cancelable leases and build-to-suit arrangements as of June 30, 2019:



	Operating lease obligations		Build-to-suit lease obligations (1)		Finance lease obligations		Total lease obligations
2020	$	30,269	$	13,482	$	11,468	$	55,219
2021	22,849		13,836		6,414		43,099
2022	16,592		13,877		3,724		34,193
2023	12,553		12,426		2,544		27,523
2024	9,032		12,163		1,565		22,760
Thereafter	8,338		40,656		2,403		51,397
Total	$	99,633	$	106,440	$	28,118	$	234,191

___________________

(1) Build-to-suit minimum payments at June 30, 2019 related to our Waltham, MA and Dallas, TX leases, refer to Note 2 for additional details.

Other information about leases is as follows:



Lease Term and Discount Rate	June 30, 2020
Weighted-average remaining lease term (years):
Operating leases	6.18
Finance leases	4.61
Weighted-average discount rate:
Operating leases	2.83	%
Finance leases	2.62	%

Our leases have remaining lease terms of 1 year to 15 years, inclusive of renewal or termination options that we are reasonably certain to exercise.



	Year Ended
Supplemental Cash Flow Information	June 30, 2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases (1)	$	40,777
Operating cash flows from finance leases	698
Financing cash flows from finance leases (1)	9,511

___________________

(1) During the fourth quarter of fiscal 2020, we negotiated rent payment holidays with several leasing counterparties for both operating and finance leases as a lease concession in response to the COVID-19 pandemic. Our cash flows from operating and finance leases in fiscal 2020 were higher by $6,385 and $1,833, respectively, due to these deferrals of lease payments.