LEASES

12 Months Ended

Jun. 30, 2020

Leases [Abstract]

LEASES

LEASES

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	As of 6/30/2020
Operating leases
Right-of-use assets	Operating lease right-of-use assets	$	291
Current lease liabilities	Current operating lease liabilities	64
Non-current lease liabilities	Long-term operating lease liabilities	278
Total operating lease liabilities		$	342
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:

	Twelve Months Ended
	6/30/2020
Operating lease cost	73
Finance lease cost:
Amortization of right-of-use assets	4
Interest on lease liabilities	—
Total finance lease cost	4
Variable lease cost	39
Short term lease cost	1

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

	Twelve Months Ended
	6/30/2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net	$	54
Operating cash flows from finance leases	—
Financing cash flows from finance leases	2
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	38
Finance leases	8

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

	As of 6/30/2020
Weighted-average remaining lease term:
Operating leases	7 years
Finance leases	7 years
Weighted-average discount rate:
Operating leases	2.49	%
Finance leases	3.20	%

Maturities of lease liabilities by fiscal year for the Company’s leases as of June 30, 2020 were as follows:

Year	Operating leases		Finance leases
2021	$	70	3
2022	56		2
2023	49		2
2024	42		2
2025	36		2
Thereafter	122		5
Total lease payments	$	375	$	16
Less: Imputed interest	(33)		(2)
Total lease liabilities	$	342	$	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

Rent expense under operating leases under ASC 840 amounted to $72 and $86 for the years ended June 30, 2019 and 2018, respectively.

LEASES

LEASES

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	As of 6/30/2020
Operating leases
Right-of-use assets	Operating lease right-of-use assets	$	291
Current lease liabilities	Current operating lease liabilities	64
Non-current lease liabilities	Long-term operating lease liabilities	278
Total operating lease liabilities		$	342
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:

	Twelve Months Ended
	6/30/2020
Operating lease cost	73
Finance lease cost:
Amortization of right-of-use assets	4
Interest on lease liabilities	—
Total finance lease cost	4
Variable lease cost	39
Short term lease cost	1

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

	Twelve Months Ended
	6/30/2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net	$	54
Operating cash flows from finance leases	—
Financing cash flows from finance leases	2
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	38
Finance leases	8

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

	As of 6/30/2020
Weighted-average remaining lease term:
Operating leases	7 years
Finance leases	7 years
Weighted-average discount rate:
Operating leases	2.49	%
Finance leases	3.20	%

Maturities of lease liabilities by fiscal year for the Company’s leases as of June 30, 2020 were as follows:

Year	Operating leases		Finance leases
2021	$	70	3
2022	56		2
2023	49		2
2024	42		2
2025	36		2
Thereafter	122		5
Total lease payments	$	375	$	16
Less: Imputed interest	(33)		(2)
Total lease liabilities	$	342	$	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

Rent expense under operating leases under ASC 840 amounted to $72 and $86 for the years ended June 30, 2019 and 2018, respectively.