LEASES

9 Months Ended

Mar. 31, 2020

Leases

The Company determines whether a contract contains a lease at the inception of a contract by determining if the contract conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. We lease certain real estate, machinery, equipment, vehicles and office equipment for varying periods. Many of these leases include an option to either renew or terminate the lease. For purposes of calculating lease liabilities, these options are included within the lease term when it has become reasonably certain that the Company will exercise such options. The incremental borrowing rate utilized to calculate our lease liabilities is based on the information available at commencement date, as most of the leases do not provide an implicit borrowing rate. The Company does not have any material financing lease or sublease activities.

The Company incurred lease expense for operating leases of $82 and $255 for the three and nine months ended March 31, 2020, respectively. Total cash paid related to leases during the three and nine months ended March 31, 2020 was $60 and $205, respectively, including amounts expensed and amounts capitalized. Short-term leases, defined as leases with initial terms of 12 months or less, are not reflected on the Consolidated Balance Sheets. Lease expense for such short-term leases is not material. The most significant assets in our leasing portfolio relate to real estate and vehicles. For purposes of calculating lease liabilities for such leases, we have combined lease and non-lease components.

The right-of-use assets obtained in exchange for new lease liabilities were $42 and $70 for the three and nine months ended March 31, 2020, respectively.

Supplemental balance sheet and other information related to leases is as follows:


	March 31, 2020
Operating leases:
Other noncurrent assets	$	855

Accrued and other liabilities	245
Other noncurrent liabilities	645
Total operating lease liabilities	$	890

Weighted average remaining lease term:
Operating leases	6.4 years

Weighted average discount rate:
Operating leases	4.4		%

At March 31, 2020, future payments of operating lease liabilities were as follows:


	Operating Leases
	March 31, 2020
1 year	$	245
2 years	193
3 years	159
4 years	134
5 years	93
Over 5 years	199
Total lease payments	1,023
Less: Interest	(133)
Present value of lease liabilities	$	890

As of June 30, 2019, minimum lease payments under non-cancelable operating leases by fiscal year were expected to be:


	Operating Leases
	June 30, 2019
2020	$	263
2021	209
2022	165
2023	141
2024	121
After 2024	244
Total lease payments	$	1,143