Leases

12 Months Ended

Jun. 30, 2020

The Company’s operating lease expense is recognized on a straight-line basis over the lease term and is recorded in selling, distribution and administrative expense on the statements of consolidated income. Operating lease costs and short-term lease costs were $33,152 and $10,581 for the year ended June 30, 2020, respectively. Rental expense incurred for operating leases under ASC Topic 840, Leases, was $45,000 for the year ended June 30, 2019. Variable lease costs and sublease income were not material.

Information related to operating leases is as follows:



June 30,	2020
Operating lease assets, net	$	90,636

Operating lease liabilities
Other current liabilities	$	27,231
Other liabilities	67,926
Total operating lease liabilities	$	95,157



June 30,	2020
Weighted average remaining lease term (years)	3.6
Weighted average incremental borrowing rate	3.45	%



Year Ended June 30,	2020
Cash paid for operating leases	$	34,642
Right of use assets obtained in exchange for new operating lease liabilities	$	39,136

The table below summarizes the aggregate maturities of liabilities pertaining to operating leases with terms greater than one year for each of the next five years:



Fiscal Year	Maturity of Operating Lease Liabilities
2021	$	29,979
2022	22,900
2023	16,428
2024	12,842
2025	6,698
Thereafter	15,318
Total lease payments	104,165
Less interest	9,008
Present value of lease liabilities	$	95,157

The table below summarizes the future minimum annual rental commitments for operating leases accounted for in accordance with ASC Topic 840, Leases, as of June 30, 2019:



Fiscal Year	Operating Leases
2020	$	33,707
2021	23,407
2022	16,420
2023	10,653
2024	7,838
Thereafter	12,135
Total minimum lease payments	$	104,160

The Company maintains lease agreements for many of the operating facilities of businesses it acquires from previous owners. In many cases, the previous owners of the business acquired become employees of Applied and occupy management positions within those businesses. The payments under lease agreements of this nature totaled $2,500 in 2020 and $2,400 in both 2019 and 2018, respectively.