Leases

3 Months Ended

Sep. 30, 2020

As a result of adoption of ASU 2016-02, Leases, the Company records right-of-use "ROU" assets and operating lease liabilities on the consolidated balance sheet for several types of operating leases, including land and buildings, equipment (e.g. trucks and forklifts), vehicles, and computer equipment. On the lease commencement date, the Company measures and records a ROU asset and lease liability equal to the present value of the remaining lease payments, discounted using the rate implicit in the lease (or if that rate cannot be readily determined, the Company’s incremental borrowing rate). Operating leases are included in other assets, accrued liabilities (current) and other liabilities (long-term) on the consolidated balance sheets.

The Company elected the practical expedient to not separate lease components from nonlease components for all asset classes. The Company recognizes lease expense in the consolidated statements of operations on a straight-line basis over the lease term. The Company elected to not recognize ROU assets and lease liabilities for short-term leases with an initial term of 12 months or less for all asset classes. Leases with the option to extend their term or terminate early are reflected in the lease term when it is reasonably certain that the Company will exercise such options. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable lease payments are not presented as part of the ROU asset or lease liability. The leases have remaining terms of one to seventeen years.

The following table sets forth the components of the Company’s lease cost for the three months ended September 30, 2020 and September 30, 2019:


	Three Months Ended September 30,		Three Months Ended September 30,
($ in millions)	2020		2019
Operating lease cost	$	3.6	$	3.4
Short-term lease cost	0.8		0.8
Variable lease cost	0.2		0.1
Total lease cost	$	4.6	$	4.3

Operating cash flow payments from operating leases	$	3.5	$	3.3
Non-cash ROU assets obtained in exchange for lease obligations	$	1.4	$	0.9

The following table sets forth the Company’s weighted-average remaining lease term and weighted-average discount rate at September 30, 2020 and June 30, 2020:


	September 30, 2020		June 30, 2020
Weighted-average remaining lease term - operating leases	8.0 years		8.1 years
Weighted-average discount rate - operating leases	3.9	%	3.9	%

The following table sets forth the Company’s ROU assets and lease liabilities at September 30, 2020 and June 30, 2020:


($ in millions)	September 30, 2020		June 30, 2020
Operating lease assets:
Other assets	$	46.6	$	52.0
Operating lease liabilities:
Other accrued liabilities	$	11.1	$	11.5
Other liabilities	45.3		50.3
Total operating lease liabilities	$	56.4	$	61.8

Minimum lease payments for operating leases expiring subsequent to September 30, 2020 are as follows:


($ in millions)	September 30, 2020
2021 (remaining period of fiscal year)	$	10.9
2022	11.5
2023	9.9
2024	7.7
2025	4.8
Thereafter	23.6
Total future minimum lease payments	68.4
Less imputed interest	(12.0)
Total	$	56.4