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Leases | 3 Months Ended
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Sep. 27, 2020
Leases [Abstract] |
Leases | Leases The Company primarily leases manufacturing, office and warehousing space. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. The Company's finance lease obligations primarily relate to Wolfspeed manufacturing space in Malaysia and a 49-year ground lease on a future silicon carbide fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars):
Operating Leases: | September 27, 2020 |  | June 28, 2020
Right-of-use asset (1) | $14.4 |  |  | $14.0 |
Current lease liability (2) | 5.7 |  |  | 5.2 |
Non-current lease liability (3) | 8.9 |  |  | 8.7 |
Total operating lease liabilities | 14.6 |  |  | 13.9 |
Finance Leases: |  |  |
Finance lease assets (4) | 11.4 |  |  | 15.4 |
Current portion of finance lease liabilities | 0.4 |  |  | 3.6 |
Finance lease liabilities, less current portion | 10.3 |  |  | 11.4 |
Total finance lease liabilities | 10.7 |  |  | 15.0 |
(1) Within other assets on the consolidated balance sheets. (2) Within other current liabilities on the consolidated balance sheets. (3) Within other long-term liabilities on the consolidated balance sheets. (4) Within property and equipment, net on the consolidated balance sheets. Statement of Operations Operating lease expense was $1.6 million and $1.4 million for the three months ended September 27, 2020 and September 29, 2019, respectively. Short-term lease expense, variable lease expense and lease income were immaterial for the three months ended September 27, 2020 and September 29, 2019. Finance lease amortization was $0.2 million and interest expense was $0.1 million for the three months ended September 27, 2020. Finance lease amortization and interest expense were not recorded for the three months ended September 29, 2019. Cash Flows Cash flow information consisted of the following:
| Three months ended
(in millions of U.S. Dollars) | September 27, 2020 |  | September 29, 2019
Cash used in operating activities: |  |  |
Cash paid for operating leases | $1.3 |  |  | $1.5 |
Cash paid for interest portion of financing leases | 0.1 |  |  | — |
Cash used in financing activities: |  |  |
Cash paid for principal portion of finance leases | 0.1 |  |  | — |
Non-cash operating activities: |  |  |
Operating lease additions due to adoption of ASC 842 | — |  |  | 12.2 |
Operating lease additions and modifications, net | 1.8 |  |  | 0.5 |
Finance lease additions | — |  |  | — |
Non-cash investing activities (1): |  |  |
Transfer of finance lease liability to accounts payable and accrued expenses | 4.2 |  |  | — |
(1) In the first quarter of fiscal 2021, the Company executed the available bargain purchase option for certain finance leases relating to property and equipment, net, in order to purchase the assets. Lease Liability Maturities Maturities of operating and finance lease liabilities as of September 27, 2020 were as follows (in millions of U.S. Dollars):
Fiscal Year Ending | Operating Leases | Finance Leases | Total
June 27, 2021 (remainder of fiscal 2021) | $4.9 |  | $0.5 |  | $5.4 |
June 26, 2022 | 4.9 |  | 0.6 |  | 5.5 |
June 25, 2023 | 3.0 |  | 0.7 |  | 3.7 |
June 30, 2024 | 1.2 |  | 0.7 |  | 1.9 |
June 29, 2025 | 1.0 |  | 0.7 |  | 1.7 |
Thereafter | 0.4 |  | 15.3 |  | 15.7 |
Total lease payments | 15.4 |  | 18.5 |  | 33.9 |
Imputed lease interest | (0.8) |  | (7.8) |  | (8.6) |
Total lease liabilities | $14.6 |  | $10.7 |  | $25.3 |
Supplemental Disclosures
| Operating Leases | Finance Leases
Weighted average remaining lease term (in months) (1) | 39 | 470
Weighted average discount rate (2) | 3.32 | % | 2.77 | %
(1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 77 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 3.40%.
Leases | Leases The Company primarily leases manufacturing, office and warehousing space. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. The Company's finance lease obligations primarily relate to Wolfspeed manufacturing space in Malaysia and a 49-year ground lease on a future silicon carbide fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars):
Operating Leases: | September 27, 2020 |  | June 28, 2020
Right-of-use asset (1) | $14.4 |  |  | $14.0 |
Current lease liability (2) | 5.7 |  |  | 5.2 |
Non-current lease liability (3) | 8.9 |  |  | 8.7 |
Total operating lease liabilities | 14.6 |  |  | 13.9 |
Finance Leases: |  |  |
Finance lease assets (4) | 11.4 |  |  | 15.4 |
Current portion of finance lease liabilities | 0.4 |  |  | 3.6 |
Finance lease liabilities, less current portion | 10.3 |  |  | 11.4 |
Total finance lease liabilities | 10.7 |  |  | 15.0 |
(1) Within other assets on the consolidated balance sheets. (2) Within other current liabilities on the consolidated balance sheets. (3) Within other long-term liabilities on the consolidated balance sheets. (4) Within property and equipment, net on the consolidated balance sheets. Statement of Operations Operating lease expense was $1.6 million and $1.4 million for the three months ended September 27, 2020 and September 29, 2019, respectively. Short-term lease expense, variable lease expense and lease income were immaterial for the three months ended September 27, 2020 and September 29, 2019. Finance lease amortization was $0.2 million and interest expense was $0.1 million for the three months ended September 27, 2020. Finance lease amortization and interest expense were not recorded for the three months ended September 29, 2019. Cash Flows Cash flow information consisted of the following:
| Three months ended
(in millions of U.S. Dollars) | September 27, 2020 |  | September 29, 2019
Cash used in operating activities: |  |  |
Cash paid for operating leases | $1.3 |  |  | $1.5 |
Cash paid for interest portion of financing leases | 0.1 |  |  | — |
Cash used in financing activities: |  |  |
Cash paid for principal portion of finance leases | 0.1 |  |  | — |
Non-cash operating activities: |  |  |
Operating lease additions due to adoption of ASC 842 | — |  |  | 12.2 |
Operating lease additions and modifications, net | 1.8 |  |  | 0.5 |
Finance lease additions | — |  |  | — |
Non-cash investing activities (1): |  |  |
Transfer of finance lease liability to accounts payable and accrued expenses | 4.2 |  |  | — |
(1) In the first quarter of fiscal 2021, the Company executed the available bargain purchase option for certain finance leases relating to property and equipment, net, in order to purchase the assets. Lease Liability Maturities Maturities of operating and finance lease liabilities as of September 27, 2020 were as follows (in millions of U.S. Dollars):
Fiscal Year Ending | Operating Leases | Finance Leases | Total
June 27, 2021 (remainder of fiscal 2021) | $4.9 |  | $0.5 |  | $5.4 |
June 26, 2022 | 4.9 |  | 0.6 |  | 5.5 |
June 25, 2023 | 3.0 |  | 0.7 |  | 3.7 |
June 30, 2024 | 1.2 |  | 0.7 |  | 1.9 |
June 29, 2025 | 1.0 |  | 0.7 |  | 1.7 |
Thereafter | 0.4 |  | 15.3 |  | 15.7 |
Total lease payments | 15.4 |  | 18.5 |  | 33.9 |
Imputed lease interest | (0.8) |  | (7.8) |  | (8.6) |
Total lease liabilities | $14.6 |  | $10.7 |  | $25.3 |
Supplemental Disclosures
| Operating Leases | Finance Leases
Weighted average remaining lease term (in months) (1) | 39 | 470
Weighted average discount rate (2) | 3.32 | % | 2.77 | %
(1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 77 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 3.40%.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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
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- 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
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