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Leases (Notes) | 9 Months Ended
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Mar. 31, 2020
Leases [Abstract] |
Leases | Leases The Company makes a determination if an arrangement constitutes a lease at inception, and categorizes the lease as either an operating or finance lease. Operating leases are included in right-of-use operating lease assets and operating lease liabilities in the Company's Condensed Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, net and other long-term liabilities in the Condensed Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets. The Company has entered into leases for building facilities, vehicles and other equipment. The Company’s leases have remaining contractual terms of up to 10 years, some of which have options to extend the lease for up to 10 years. For purposes of calculating operating lease liabilities, lease terms are deemed not to include options to extend the lease termination until it is reasonably certain that the Company will exercise that option. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Supplemental unaudited consolidated balance sheet information related to leases is as follows:
|  | Classification |  | March 31, 2020
(In thousands) |  |  |  |
Operating lease assets |  | Right-of-use operating lease assets |  | $ | 21,789 |
Finance lease assets |  | Property, plant and equipment, net |  | 22 |
Total lease assets |  |  |  | $ | 21,811 |
Operating lease liabilities - current |  | Operating lease liabilities - current |  | $ | 6,031 |
Operating lease liabilities - noncurrent |  | Operating lease liabilities - noncurrent |  | 16,010 |
Finance lease liabilities |  | Other long-term liabilities |  | 22 |
Total lease liabilities |  |  |  | $ | 22,063 |
The components of lease expense are as follows:
|  |  |  | Three Months Ended March 31, |  | Nine Months Ended March 31,
|  | Classification |  | 2020 |  | 2020
(In thousands) |  |  |  |  |  |
Operating lease expense |  | General and administrative expenses and cost of goods sold |  | $ | 1,497 |  |  | $ | 3,858 |
Finance lease expense: |  |  |  |  |  |
Amortization of finance lease assets |  | General and administrative expenses |  | 13 |  |  | 39 |
Interest on finance lease liabilities |  | Interest expense |  | — |  |  | 1 |
Total lease expense |  |  |  | $ | 1,510 |  |  | $ | 3,898 |
|  | March 31, 2020
(In thousands) |  | Operating Leases |  | Finance Leases
Maturities of lease liabilities are as follows: |  |  |  |
2020 |  | $ | 1,532 |  |  | $ | 13 |
2021 |  | 5,764 |  |  | 9 |
2022 |  | 4,357 |  |  | — |
2023 |  | 3,711 |  |  | — |
2024 |  | 3,375 |  |  | — |
Thereafter |  | 6,272 |  |  | — |
Total lease payments |  | 25,011 |  |  | 22 |
Less: interest |  | (2,970 | ) |  | — |
Total lease obligations |  | $ | 22,041 |  |  | $ | 22 |
Lease term and discount rate:
|  | March 31, 2020
Weighted-average remaining lease terms (in years): |  |
Operating lease |  | 8.5 |
Finance lease |  | 0.4 |
Weighted-average discount rate: |  |
Operating lease |  | 4.50 | %
Finance lease |  | 4.50 | %
Other Information:
|  | Nine Months Ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |
Operating cash flows from operating leases |  | $ | 3,585 |
Operating cash flows from finance leases |  | $ | 1 |
Financing cash flows from finance leases |  | $ | 38 |
Leased assets obtained in exchange for new finance lease liabilities |  | $ | — |
Leased assets obtained in exchange for new operating lease liabilities |  | $ | — |
Disclosures related to periods prior to adoption of ASU 2016-02 Rent expense paid for the fiscal year ended June 30, 2019 was $6.4 million. The minimum annual payments under operating and capital leases as of June 30, 2019 are as follows:
(In thousands) |  | Operating Lease Obligations |  | Capital Lease Obligations
Year Ended June 30, |  |  |  |
2020 |  | $ | 4,434 |  |  | $ | 36 |
2021 |  | 3,238 |  |  | 1 |
2022 |  | 2,472 |  |  | — |
2023 |  | 2,131 |  |  | — |
2024 |  | 2,025 |  |  | — |
Thereafter |  | 4,389 |  |  | — |
Total minimum lease payments |  | $ | 18,689 |  |  | 37 |
Less: imputed interest (0.82% to 10.66%) |  |  |  | (2 | )
Present value of future minimum lease payments |  |  |  | 35 |
Less: current portion |  |  |  | (34 | )
Long-term capital lease obligations |  |  |  | $ | 1 |
Leases | Leases The Company makes a determination if an arrangement constitutes a lease at inception, and categorizes the lease as either an operating or finance lease. Operating leases are included in right-of-use operating lease assets and operating lease liabilities in the Company's Condensed Consolidated Balance Sheets. Finance leases are included in property, plant and equipment, net and other long-term liabilities in the Condensed Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets. The Company has entered into leases for building facilities, vehicles and other equipment. The Company’s leases have remaining contractual terms of up to 10 years, some of which have options to extend the lease for up to 10 years. For purposes of calculating operating lease liabilities, lease terms are deemed not to include options to extend the lease termination until it is reasonably certain that the Company will exercise that option. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Supplemental unaudited consolidated balance sheet information related to leases is as follows:
|  | Classification |  | March 31, 2020
(In thousands) |  |  |  |
Operating lease assets |  | Right-of-use operating lease assets |  | $ | 21,789 |
Finance lease assets |  | Property, plant and equipment, net |  | 22 |
Total lease assets |  |  |  | $ | 21,811 |
Operating lease liabilities - current |  | Operating lease liabilities - current |  | $ | 6,031 |
Operating lease liabilities - noncurrent |  | Operating lease liabilities - noncurrent |  | 16,010 |
Finance lease liabilities |  | Other long-term liabilities |  | 22 |
Total lease liabilities |  |  |  | $ | 22,063 |
The components of lease expense are as follows:
|  |  |  | Three Months Ended March 31, |  | Nine Months Ended March 31,
|  | Classification |  | 2020 |  | 2020
(In thousands) |  |  |  |  |  |
Operating lease expense |  | General and administrative expenses and cost of goods sold |  | $ | 1,497 |  |  | $ | 3,858 |
Finance lease expense: |  |  |  |  |  |
Amortization of finance lease assets |  | General and administrative expenses |  | 13 |  |  | 39 |
Interest on finance lease liabilities |  | Interest expense |  | — |  |  | 1 |
Total lease expense |  |  |  | $ | 1,510 |  |  | $ | 3,898 |
|  | March 31, 2020
(In thousands) |  | Operating Leases |  | Finance Leases
Maturities of lease liabilities are as follows: |  |  |  |
2020 |  | $ | 1,532 |  |  | $ | 13 |
2021 |  | 5,764 |  |  | 9 |
2022 |  | 4,357 |  |  | — |
2023 |  | 3,711 |  |  | — |
2024 |  | 3,375 |  |  | — |
Thereafter |  | 6,272 |  |  | — |
Total lease payments |  | 25,011 |  |  | 22 |
Less: interest |  | (2,970 | ) |  | — |
Total lease obligations |  | $ | 22,041 |  |  | $ | 22 |
Lease term and discount rate:
|  | March 31, 2020
Weighted-average remaining lease terms (in years): |  |
Operating lease |  | 8.5 |
Finance lease |  | 0.4 |
Weighted-average discount rate: |  |
Operating lease |  | 4.50 | %
Finance lease |  | 4.50 | %
Other Information:
|  | Nine Months Ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |
Operating cash flows from operating leases |  | $ | 3,585 |
Operating cash flows from finance leases |  | $ | 1 |
Financing cash flows from finance leases |  | $ | 38 |
Leased assets obtained in exchange for new finance lease liabilities |  | $ | — |
Leased assets obtained in exchange for new operating lease liabilities |  | $ | — |
Disclosures related to periods prior to adoption of ASU 2016-02 Rent expense paid for the fiscal year ended June 30, 2019 was $6.4 million. The minimum annual payments under operating and capital leases as of June 30, 2019 are as follows:
(In thousands) |  | Operating Lease Obligations |  | Capital Lease Obligations
Year Ended June 30, |  |  |  |
2020 |  | $ | 4,434 |  |  | $ | 36 |
2021 |  | 3,238 |  |  | 1 |
2022 |  | 2,472 |  |  | — |
2023 |  | 2,131 |  |  | — |
2024 |  | 2,025 |  |  | — |
Thereafter |  | 4,389 |  |  | — |
Total minimum lease payments |  | $ | 18,689 |  |  | 37 |
Less: imputed interest (0.82% to 10.66%) |  |  |  | (2 | )
Present value of future minimum lease payments |  |  |  | 35 |
Less: current portion |  |  |  | (34 | )
Long-term capital lease obligations |  |  |  | $ | 1 |

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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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