OPERATING LEASES

12 Months Ended

Jun. 30, 2014

Operating Leases

OPERATING LEASES

Operating leases arise from the leasing of the Company’s commercial and residential real estate investment property. Initial lease terms generally range from 12 to 60 months. Depreciation expense for assets subject to operating leases is taken into account primarily on the straight-line method over a period of twenty years in amounts necessary to reduce the carrying amount of the asset to its estimated residual value. Depreciation expense relating to the property held as investments in operating leases was $109 and $112 for fiscal years 2014 and 2013, respectively.

Future minimum rental income in China to be received from fiscal year 2015 to fiscal year 2019 on non-cancellable operating leases is contractually due as follows as of June 30, 2014:

2015	$	115
2016		126
2017		136
2018		145
2019		6
	$	528

Future minimum rental income in China to be received from fiscal year 2014 to fiscal year 2018 on non-cancellable operating leases is contractually due as follows as of June 30, 2013:

2014	$	174
2015		112
2016		123
2017		133
2018		150
	$	692