LEASES AND OTHER COMMITMENTS LEASES AND OTHER COMMITMENTS

6 Months Ended

Dec. 31, 2019

Leases [Abstract]

LEASES AND OTHER COMMITMENTS

LEASES AND OTHER COMMITMENTS

The Company leases various property, plant and equipment, including office, warehousing, manufacturing and research and development facilities and equipment. These leases have remaining lease terms of up to 11 years, inclusive of renewal or termination options that the Company is reasonably certain to exercise. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to the Company’s leases was as follows:

	Balance sheet classification	12/31/2019
Operating leases
Right-of-use assets	Operating lease right-of-use assets	$	303
Current lease liabilities	Current operating lease liabilities	61
Non-current lease liabilities	Long-term operating lease liabilities	282
Total operating lease liabilities		$	343
Finance leases
Right-of-use assets	Other assets	$	14
Current lease liabilities	Accounts payable and accrued liabilities	2
Non-current lease liabilities	Other liabilities	12
Total finance lease liabilities		$	14

Components of lease cost were as follows:

	Three Months Ended		Six Months Ended
	12/31/2019		12/31/2019
Operating lease cost	$	19	37
Finance lease cost:
Amortization of right-of-use assets	1		2
Interest on lease liabilities	—		—
Total finance lease cost	$	1	2
Variable lease cost	$	10	20
Short term lease cost	1		1

Supplemental cash flow information and non-cash activity related to the Company’s leases were as follows:

	Six Months Ended
	12/31/2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net	$	29
Operating cash flows from finance leases	—
Financing cash flows from finance leases	1
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	16
Finance leases	7

Weighted-average remaining lease term and discount rate for the Company’s leases were as follows:

	12/31/2019
Weighted-average remaining lease term:
Operating leases	8 years
Finance leases	8 years
Weighted-average discount rate:
Operating leases	2.6	%
Finance leases	3.3	%

Maturities of lease liabilities by fiscal year for the Company’s leases as of December 31, 2019 were as follows:

Year	Operating leases			Finance leases
2020	$	22		$	1
2021	67			2
2022	52			2
2023	45			2
2024	40			2
Thereafter	156			7
Total lease payments	$	382		$	16
Less: Imputed interest	(39		)	(2		)
Total lease liabilities	$	343		$	14

The future minimum annual lease payments required under the Company’s existing non-cancelable operating and capital lease agreements as of June 30, 2019 prior to the adoption of ASC 842 were as follows:

Year	Operating leases		Capital leases
2020	$	71	$	2
2021	65		2
2022	50		1
2023	42		1
2024	37		1
Thereafter	124		2
Total lease payments	$	389	$	9

LEASES AND OTHER COMMITMENTS

LEASES AND OTHER COMMITMENTS

The Company leases various property, plant and equipment, including office, warehousing, manufacturing and research and development facilities and equipment. These leases have remaining lease terms of up to 11 years, inclusive of renewal or termination options that the Company is reasonably certain to exercise. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to the Company’s leases was as follows:

	Balance sheet classification	12/31/2019
Operating leases
Right-of-use assets	Operating lease right-of-use assets	$	303
Current lease liabilities	Current operating lease liabilities	61
Non-current lease liabilities	Long-term operating lease liabilities	282
Total operating lease liabilities		$	343
Finance leases
Right-of-use assets	Other assets	$	14
Current lease liabilities	Accounts payable and accrued liabilities	2
Non-current lease liabilities	Other liabilities	12
Total finance lease liabilities		$	14

Components of lease cost were as follows:

	Three Months Ended		Six Months Ended
	12/31/2019		12/31/2019
Operating lease cost	$	19	37
Finance lease cost:
Amortization of right-of-use assets	1		2
Interest on lease liabilities	—		—
Total finance lease cost	$	1	2
Variable lease cost	$	10	20
Short term lease cost	1		1

Supplemental cash flow information and non-cash activity related to the Company’s leases were as follows:

	Six Months Ended
	12/31/2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net	$	29
Operating cash flows from finance leases	—
Financing cash flows from finance leases	1
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	16
Finance leases	7

Weighted-average remaining lease term and discount rate for the Company’s leases were as follows:

	12/31/2019
Weighted-average remaining lease term:
Operating leases	8 years
Finance leases	8 years
Weighted-average discount rate:
Operating leases	2.6	%
Finance leases	3.3	%

Maturities of lease liabilities by fiscal year for the Company’s leases as of December 31, 2019 were as follows:

Year	Operating leases			Finance leases
2020	$	22		$	1
2021	67			2
2022	52			2
2023	45			2
2024	40			2
Thereafter	156			7
Total lease payments	$	382		$	16
Less: Imputed interest	(39		)	(2		)
Total lease liabilities	$	343		$	14

The future minimum annual lease payments required under the Company’s existing non-cancelable operating and capital lease agreements as of June 30, 2019 prior to the adoption of ASC 842 were as follows:

Year	Operating leases		Capital leases
2020	$	71	$	2
2021	65		2
2022	50		1
2023	42		1
2024	37		1
Thereafter	124		2
Total lease payments	$	389	$	9