LEASES

12 Months Ended

Jun. 30, 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. Our operating lease agreements do not contain any material guarantees or restrictive covenants. The Company does not have any material finance leases or sublease activities.

The Company incurred lease expense for operating leases of $347, $341 and $340 during the years ended June 30, 2020, 2019 and 2018, respectively. Total cash paid for amounts included in the measurement of lease liabilities during the year ended June 30, 2020 was $271. 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 $126 for the year ended June 30, 2020.

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


	June 30, 2020
Operating leases:
Other noncurrent assets	$	850

Accrued and other liabilities	239
Other noncurrent liabilities	652
Total operating lease liabilities	$	891

Weighted average remaining lease term:
Operating leases	6.5 years

Weighted average discount rate:
Operating leases	4.3		%

At June 30, 2020, future payments of operating lease liabilities were as follows:


	Operating Leases
	June 30, 2020
1 year	$	239
2 years	191
3 years	161
4 years	134
5 years	86
Over 5 years	212
Total lease payments	1,023
Less: Interest	(132)
Present value of lease liabilities	$	891

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