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Leases
 9 Months Ended
Mar. 31, 2022
Leases [Abstract]  
Leases Leases
The Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities and operating lease liabilities - long-term on the Company's Condensed Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the Condensed Consolidated Balance Sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the $4.8 million of a machinery lease financing with a vendor. In addition, the finance lease related to the RMB 400.0 million of lease financing of the JV Company with YinHai Leasing Company and The Export-Import Bank of China was not included in the Company’s unaudited Condensed Consolidated Balance Sheet at March 31, 2022 due to the deconsolidation of the JV Company on December 2, 2021. The Company does not record leases on the Condensed Consolidated Balance Sheets with a term of one year or less.
The Company’s unaudited Condensed Consolidated Statements of Income for the three and nine months ended March 31, 2022 include the JV Company's results for the period through December 1, 2021, the day immediately preceding the deconsolidation. The components of the Company’s operating and finance lease expenses are as follows for the periods presented (in thousands):

Nine Months Ended March 31,
20222021
Operating leases:
     Fixed rent expense$4,955 $5,089 
     Variable rent expense741 599 
Finance lease:
     Amortization of equipment787 1,682 
     Interest692 1,699 
Short-term leases
     Short-term lease expenses144 164 
               Total lease expenses$7,319 $9,233 
Supplemental balance sheets information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate):
March 31,
2022		June 30,
2021
Operating Leases:
     ROU assets associated with operating leases$24,971 $34,660 
Finance Lease:
     Property, plant and equipment, gross$4,831 $114,404 
     Accumulated depreciation(15)(96,470)
          Property, plant and equipment, net$4,816 $17,934 
Weighted average remaining lease term (in years)
     Operating leases7.488.44
     Finance lease4.961.72
Weighted average discount rate
     Operating leases4.24 %4.67 %
     Finance lease4.50 %5.46 %

Supplemental cash flow information related to the Company’s operating and finance lease is as follows (in thousands):

Nine Months Ended March 31,
20222021
Cash paid from amounts included in the measurement of lease liabilities:
     Operating cash flows from operating leases$4,965 $4,721 
     Operating cash flows from finance lease$421 $1,699 
     Financing cash flows from finance lease$4,176 $12,267 
Non-cash investing and financing information:
    Operating lease right-of-use assets obtained in exchange for lease obligations$5,901 $2,843 

Future minimum lease payments are as follows as of March 31, 2022 (in thousands):

Year ending June 30,Operating LeasesFinance Leases
The remainder of fiscal 2022$1,550 $163 
20235,382 1,074 
20244,123 1,083 
20253,254 1,083 
20263,207 1,083 
Thereafter13,658 754 
Total minimum lease payments31,174 5,240 
Less amount representing interest(4,751)(544)
Total lease liabilities$26,423 $4,696 
Leases Leases
The Company evaluates contracts for lease accounting at contract inception and assesses lease classification at the lease commencement date. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities and operating lease liabilities - long-term on the Company's Condensed Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, finance lease liabilities and finance lease liabilities-long-term on the Condensed Consolidated Balance Sheets. The Company recognizes a ROU asset and corresponding lease obligation liability at the lease commencement date where the lease obligation liability is measured at the present value of the minimum lease payments. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate at lease commencement. The Company uses an interest rate commensurate with the interest rate to borrow on a collateralized basis over a similar term with an amount equal to the lease payments. Operating leases are primarily related to offices, research and development facilities, sales and marketing facilities, and manufacturing facilities. In addition, long-term supply agreements to lease gas tank equipment and purchase industrial gases are accounted for as operating leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. For operating leases, the amortization of the ROU asset and the accretion of its lease obligation liability result in a single straight-line expense recognized over the lease term. The finance lease is related to the $4.8 million of a machinery lease financing with a vendor. In addition, the finance lease related to the RMB 400.0 million of lease financing of the JV Company with YinHai Leasing Company and The Export-Import Bank of China was not included in the Company’s unaudited Condensed Consolidated Balance Sheet at March 31, 2022 due to the deconsolidation of the JV Company on December 2, 2021. The Company does not record leases on the Condensed Consolidated Balance Sheets with a term of one year or less.
The Company’s unaudited Condensed Consolidated Statements of Income for the three and nine months ended March 31, 2022 include the JV Company's results for the period through December 1, 2021, the day immediately preceding the deconsolidation. The components of the Company’s operating and finance lease expenses are as follows for the periods presented (in thousands):

Nine Months Ended March 31,
20222021
Operating leases:
     Fixed rent expense$4,955 $5,089 
     Variable rent expense741 599 
Finance lease:
     Amortization of equipment787 1,682 
     Interest692 1,699 
Short-term leases
     Short-term lease expenses144 164 
               Total lease expenses$7,319 $9,233 
Supplemental balance sheets information related to the Company’s operating and finance leases is as follows (in thousands, except lease term and discount rate):
March 31,
2022		June 30,
2021
Operating Leases:
     ROU assets associated with operating leases$24,971 $34,660 
Finance Lease:
     Property, plant and equipment, gross$4,831 $114,404 
     Accumulated depreciation(15)(96,470)
          Property, plant and equipment, net$4,816 $17,934 
Weighted average remaining lease term (in years)
     Operating leases7.488.44
     Finance lease4.961.72
Weighted average discount rate
     Operating leases4.24 %4.67 %
     Finance lease4.50 %5.46 %

Supplemental cash flow information related to the Company’s operating and finance lease is as follows (in thousands):

Nine Months Ended March 31,
20222021
Cash paid from amounts included in the measurement of lease liabilities:
     Operating cash flows from operating leases$4,965 $4,721 
     Operating cash flows from finance lease$421 $1,699 
     Financing cash flows from finance lease$4,176 $12,267 
Non-cash investing and financing information:
    Operating lease right-of-use assets obtained in exchange for lease obligations$5,901 $2,843 

Future minimum lease payments are as follows as of March 31, 2022 (in thousands):

Year ending June 30,Operating LeasesFinance Leases
The remainder of fiscal 2022$1,550 $163 
20235,382 1,074 
20244,123 1,083 
20253,254 1,083 
20263,207 1,083 
Thereafter13,658 754 
Total minimum lease payments31,174 5,240 
Less amount representing interest(4,751)(544)
Total lease liabilities$26,423 $4,696