LEASES

12 Months Ended

Jun. 30, 2022

Leases [Abstract]

LEASES

LEASESThe 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 35 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 as of June 30 was as follows:

	Balance sheet classification	2022		2021
Operating leases
Right-of-use assets	Operating lease right-of-use assets	$	342	$	332
Current lease liabilities	Current operating lease liabilities	$	78	$	81
Non-current lease liabilities	Long-term operating lease liabilities	314		301
Total operating lease liabilities		$	392	$	382
Finance leases
Right-of-use assets	Other assets	$	18	$	19
Current lease liabilities	Accounts payable and accrued liabilities	$	6	$	5
Non-current lease liabilities	Other liabilities	13		15
Total finance lease liabilities		$	19	$	20

Components of lease cost were as follows for the fiscal years ended June 30:

	2022		2021
Operating lease cost	$	83	$	73
Finance lease cost:
Amortization of right-of-use assets	$	9	$	4
Interest on lease liabilities	1		—
Total finance lease cost	$	10	$	4
Variable lease cost	$	80	$	39
Short term lease cost	$	6	$	2

Supplemental cash flow information and non-cash activity related to the Company’s leases were as follows during fiscal years ended June 30:

	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net	$	84	$	75
Operating cash flows from finance leases	1		—
Financing cash flows from finance leases	9		3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	94	$	106
Finance leases	18		7

Weighted-average remaining lease term and discount rate for the Company’s leases were as follows as of fiscal year ended June 30:

	2022
Weighted-average remaining lease term:
Operating leases	6 years
Finance leases	4 years
Weighted-average discount rate:
Operating leases	2.4	%
Finance leases	4.1	%

Maturities of lease liabilities by fiscal year for the Company’s leases as of June 30, 2022 were as follows:

Year	Operating leases		Finance leases
2023	$	80	$	7
2024	78		5
2025	67		3
2026	55		2
2027	45		1
Thereafter	101		2
Total lease payments	$	426	$	20
Less: Imputed interest	(34)		(1)
Total lease liabilities	$	392	$	19

Operating and finance lease payments presented in the table above exclude $39 and $0, respectively, of minimum lease payments signed but not yet commenced as of June 30, 2022.

On May 25, 2022, the Company completed an asset sale-leaseback transaction on a plant in Ontario, Canada. The Company received proceeds of $16, net of selling costs, which had a carrying value of $2, and resulted in a $14 gain on the transaction which was recognized in Other (income) expense, net. The leaseback is accounted for as an operating lease. The term of the lease is 10 years, with the option to terminate the lease at 7 years.

LEASES

LEASESThe 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 35 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 as of June 30 was as follows:

	Balance sheet classification	2022		2021
Operating leases
Right-of-use assets	Operating lease right-of-use assets	$	342	$	332
Current lease liabilities	Current operating lease liabilities	$	78	$	81
Non-current lease liabilities	Long-term operating lease liabilities	314		301
Total operating lease liabilities		$	392	$	382
Finance leases
Right-of-use assets	Other assets	$	18	$	19
Current lease liabilities	Accounts payable and accrued liabilities	$	6	$	5
Non-current lease liabilities	Other liabilities	13		15
Total finance lease liabilities		$	19	$	20

Components of lease cost were as follows for the fiscal years ended June 30:

	2022		2021
Operating lease cost	$	83	$	73
Finance lease cost:
Amortization of right-of-use assets	$	9	$	4
Interest on lease liabilities	1		—
Total finance lease cost	$	10	$	4
Variable lease cost	$	80	$	39
Short term lease cost	$	6	$	2

Supplemental cash flow information and non-cash activity related to the Company’s leases were as follows during fiscal years ended June 30:

	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net	$	84	$	75
Operating cash flows from finance leases	1		—
Financing cash flows from finance leases	9		3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	94	$	106
Finance leases	18		7

Weighted-average remaining lease term and discount rate for the Company’s leases were as follows as of fiscal year ended June 30:

	2022
Weighted-average remaining lease term:
Operating leases	6 years
Finance leases	4 years
Weighted-average discount rate:
Operating leases	2.4	%
Finance leases	4.1	%

Maturities of lease liabilities by fiscal year for the Company’s leases as of June 30, 2022 were as follows:

Year	Operating leases		Finance leases
2023	$	80	$	7
2024	78		5
2025	67		3
2026	55		2
2027	45		1
Thereafter	101		2
Total lease payments	$	426	$	20
Less: Imputed interest	(34)		(1)
Total lease liabilities	$	392	$	19

Operating and finance lease payments presented in the table above exclude $39 and $0, respectively, of minimum lease payments signed but not yet commenced as of June 30, 2022.

On May 25, 2022, the Company completed an asset sale-leaseback transaction on a plant in Ontario, Canada. The Company received proceeds of $16, net of selling costs, which had a carrying value of $2, and resulted in a $14 gain on the transaction which was recognized in Other (income) expense, net. The leaseback is accounted for as an operating lease. The term of the lease is 10 years, with the option to terminate the lease at 7 years.