Leases

3 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

Leases

On July 1, 2019, the Company adopted Topic 842, Leases, using the modified retrospective transition approach. We determine if an arrangement is a lease at inception and classify it as either finance or operating. The Company's portfolio of leases contains certain real estate, equipment and vehicle leases.

The Company’s lease liabilities are recognized based on the present value of the remaining fixed lease payments, over the lease term, using a discount rate of similarly secured borrowings available to the Company. For the purpose of lease liability measurement, we consider only payments that are fixed and determinable at the time of commencement. Any variable payments that depend on an index or rate are expensed as incurred. We account for non-lease components, such as common area maintenance, as a component of the lease, and include it in the initial measurement of our lease assets and corresponding liabilities. The Company’s lease terms and conditions may include options to extend or terminate. An option is recognized when it is reasonably certain that we will exercise that option.

The Company’s lease assets also include any lease payments made and exclude any lease incentives received prior to commencement. Our lease assets are tested for impairment in the same manner as long-lived assets used in operations.

The following table presents lease costs, which include short-term leases, lease term, and discount rates ($000):

	Three Months Ended September 30, 2020		Three Months Ended September 30, 2019
Finance Lease Cost
Amortization of right-of-use assets	$	417	$	417
Interest on lease liabilities	323		337
Total finance lease cost	$	740	$	754
Operating lease cost	9,197		6,107
Sublease income	368		—
Total lease cost	$	9,569	$	6,861
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating cash flows from finance leases	$	323	$	337
Operating cash flows from operating leases	8,631		5,940
Financing cash flows from finance leases	274		243
Weighted-Average Remaining Lease Term (in Years)
Finance leases	11.3
Operating leases	7.0
Weighted-Average Discount Rate
Finance leases	5.6 %
Operating leases	7.1 %

The following table presents future minimum lease payments, which include short-term leases ($000):

Future Years	Operating Leases		Finance Leases		Total
Year 1	$	31,818	$	2,436	$	34,254
Year 2	25,589		2,503		28,092
Year 3	22,333		2,572		24,905
Year 4	19,431		2,642		22,073
Year 5	16,795		2,715		19,510
Thereafter	49,196		18,735		67,931
Total minimum lease payments	$	165,162	$	31,603	$	196,765
Less: amounts representing interest	41,454		8,429		49,883
Present value of total lease liabilities	$	123,708	$	23,174	$	146,882

Leases

Leases

On July 1, 2019, the Company adopted Topic 842, Leases, using the modified retrospective transition approach. We determine if an arrangement is a lease at inception and classify it as either finance or operating. The Company's portfolio of leases contains certain real estate, equipment and vehicle leases.

The Company’s lease liabilities are recognized based on the present value of the remaining fixed lease payments, over the lease term, using a discount rate of similarly secured borrowings available to the Company. For the purpose of lease liability measurement, we consider only payments that are fixed and determinable at the time of commencement. Any variable payments that depend on an index or rate are expensed as incurred. We account for non-lease components, such as common area maintenance, as a component of the lease, and include it in the initial measurement of our lease assets and corresponding liabilities. The Company’s lease terms and conditions may include options to extend or terminate. An option is recognized when it is reasonably certain that we will exercise that option.

The Company’s lease assets also include any lease payments made and exclude any lease incentives received prior to commencement. Our lease assets are tested for impairment in the same manner as long-lived assets used in operations.

The following table presents lease costs, which include short-term leases, lease term, and discount rates ($000):

	Three Months Ended September 30, 2020		Three Months Ended September 30, 2019
Finance Lease Cost
Amortization of right-of-use assets	$	417	$	417
Interest on lease liabilities	323		337
Total finance lease cost	$	740	$	754
Operating lease cost	9,197		6,107
Sublease income	368		—
Total lease cost	$	9,569	$	6,861
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating cash flows from finance leases	$	323	$	337
Operating cash flows from operating leases	8,631		5,940
Financing cash flows from finance leases	274		243
Weighted-Average Remaining Lease Term (in Years)
Finance leases	11.3
Operating leases	7.0
Weighted-Average Discount Rate
Finance leases	5.6 %
Operating leases	7.1 %

The following table presents future minimum lease payments, which include short-term leases ($000):

Future Years	Operating Leases		Finance Leases		Total
Year 1	$	31,818	$	2,436	$	34,254
Year 2	25,589		2,503		28,092
Year 3	22,333		2,572		24,905
Year 4	19,431		2,642		22,073
Year 5	16,795		2,715		19,510
Thereafter	49,196		18,735		67,931
Total minimum lease payments	$	165,162	$	31,603	$	196,765
Less: amounts representing interest	41,454		8,429		49,883
Present value of total lease liabilities	$	123,708	$	23,174	$	146,882