20. OPERATING LEASES

12 Months Ended

Jun. 30, 2018

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 expenses relating to the property held as investments in operating leases was $99 and $97 for fiscal years 2018 and 2017, respectively.

Future minimum rental income in China to be received from fiscal year 2019 to fiscal year 2022 on non-cancellable operating leases is contractually due as follows as of June 30, 2018:

2019	$	137
2020		121
2021		35
2022		-
	$	293

Future minimum rental income in China to be received from fiscal year 2018 to fiscal year 2021 on non-cancellable operating leases is contractually due as follows as of June 30, 2017:

2018	$	157
2019		107
2020		67
2021		6
	$	337