XML 28 R15.htm IDEA: XBRL DOCUMENT
v3.21.2

Leases | 12 Months Ended
--- | ---
Jun. 30, 2021
Leases [Abstract] |
Leases | 9. Leases Company as Lessee The Company leases warehouse and distribution facilities and administrative office space, generally for terms of three to five years. As described in Note 2, “Summary of Significant Accounting Policies” above, the Company adopted ASC Topic 842, Leases (“ASC 842” or “Topic 842”), utilizing the modified retrospective adoption method with an effective date of July 1, 2019. The Company made the election to not apply the recognition requirements in Topic 842 to short-term leases (i.e., leases of 12 months or less). Instead, as permitted by Topic 842, the Company recognizes the lease payments under its short-term leases in profit or loss on a straight-line basis over the lease term. The Company elected this accounting policy for all classes of underlying assets. In addition, in accordance with Topic 842, variable lease payments in the period in which the obligation for those payments is incurred are not included in the recognition of a lease liability or right-of-use asset. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. When available, the Company uses the rate implicit in the lease to discount lease payments to present value. However, certain of the Company’s leases do not provide a readily determinable implicit rate. For such leases, the Company estimates the incremental borrowing rate to discount lease payments based on information available at lease commencement. The Company uses instruments with similar characteristics when calculating its incremental borrowing rates. The Company has options to extend certain of its operating leases for additional periods of time and the right to terminate several of its operating leases prior to their contractual expirations, in each case, subject to the terms and conditions of the lease. The lease term consists of the non-cancellable period of the lease and the periods covered by Company options to extend the lease when management considers it reasonably certain that the Company will exercise such options. The Company's lease agreements do not contain residual value guarantees. The Company has elected to not separate non-lease components from the associated lease component for all underlying classes of assets with lease and non-lease components. As of June 30, 2021, the Company had 27 facilities, consisting of warehouse facilities and administrative offices, financed under operating leases with lease term expirations between 2021 and 2030. Rent expense consists of monthly rental payments under the terms of the Company’s lease agreements recognized on a straight-line basis. 54 Table of Contents
EVI Industries, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
The following table sets forth the Company’s future minimum lease payments under operating lease liabilities recorded on the Company’s condensed consolidated balance sheet as of June 30, 2021. The table below does not include commitments that are contingent on events or other factors that are currently uncertain or unknown.
Fiscal years ending |  | Maturity of Operating Lease Liabilities (in thousands)
2022 |  | $ | 2,326 |
2023 |  |  | 1,931 |
2024 |  |  | 1,052 |
2025 |  |  | 735 |
2026 |  |  | 585 |
Thereafter |  |  | 1,692 |
Total lease payments |  | $ | 8,321 |
Less: amounts representing interest |  |  | 623 |
Present value of lease liabilities |  | $ | 7,698 |
Less: current portion |  |  | 2,131 |
Long-term portion |  | $ | 5,567 |
55 Table of Contents
EVI Industries, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
The table below presents additional information related to the Company’s operating leases (in thousands):
Operating lease cost |  | Twelve months ended June 30, 2021 |  | Twelve months ended June 30, 2020 |
Operating lease cost (1) |  | $ | 2,109 |  |  | $ | 1,935 |
Short-term lease cost (1) |  |  | 12 |  |  |  | 190 |
Variable lease cost (1) |  |  | 351 |  |  |  | 177 |
Total lease cost |  | $ | 2,472 |  |  | $ | 2,302 |
(1) Expenses are classified within selling, general and administrative expenses in the Company’s consolidated statement of operations for the years ended June 30, 2021 and 2020. The table below presents lease-related terms and discount rates as of June 30, 2021 and 2020:
|  | June 30, 2021 |  | June 30, 2020 |
Weighted average remaining lease terms |  |  |  |  |
Operating leases |  |  | 5.4 years |  |  |  | 4.0 years |
Weighted average discount rate |  |  |  |  |  |  |  |
Operating leases |  |  | 2.9 | % |  |  | 3.5 | %
The table below presents supplemental cash flow information related to the Company’s long-term operating lease liabilities for the years ended June 30, 2021 and 2020 (in thousands):
|  | Twelve months ended June 30, 2021 |  | Twelve months ended June 30, 2020 |
Cash paid for amounts included in the measurement of lease liabilities: |  | $ | 2,109 |  |  | $ | 1,935 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities: |  | $ | 3,649 |  |  | $ | 1,366 |
Company as Lessor The Company derives a portion of its revenue from equipment leasing arrangements. Such arrangements provide for monthly payments covering the equipment provided, maintenance, and interest. These arrangements meet the criteria to be accounted for as sales type leases. Accordingly, revenue related to the provision of the equipment is recognized upon delivery of the equipment and its acceptance by the customer. Upon the recognition of such revenue, an asset is established for the investment in sales type leases. Maintenance revenue and interest are recognized monthly over the lease term. 56 Table of Contents
EVI Industries, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
The future minimum lease payments receivable for sales type leases are as follows (in thousands):
Fiscal years ending June 30, |  | Total Minimum Lease Payments to be Received |  | Amortization of Unearned Income |  | Net Investment in Sales Type Leases
2022 |  | $ | 3,059 |  |  | $ | 1,711 |  |  | $ | 1,348 |
2023 |  |  | 2,407 |  |  |  | 1,316 |  |  |  | 1,091 |
2024 |  |  | 1,769 |  |  |  | 926 |  |  |  | 843 |
2025 |  |  | 1,135 |  |  |  | 573 |  |  |  | 562 |
2026 |  |  | 626 |  |  |  | 294 |  |  |  | 332 |
Thereafter |  |  | 562 |  |  |  | 257 |  |  |  | 305 |
|  |  |  |  |  |  |  |  |  | $ | 4,481 | *
* Excludes non-guaranteed residual values of $2.2 million. The total net investments in sales type leases, including stated residual values, as of June 30, 2021 and June 30, 2020 was $6.7 million and $3.9 million, respectively. The current portion of $0.9 million and $0.7 million is included in other current assets in the consolidated balance sheets as of June 30, 2021 and June 30, 2020, respectively, and the long term portion of $5.8 million and $3.2 million is included in other assets in the consolidated balance sheets as of June 30, 2021 and June 30, 2020, respectively.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration