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Leases
 3 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leases Leases
We determine if an arrangement is a lease at inception for arrangements with an initial term of more than 12 months, and classify it as either finance or operating.
Finance leases are generally those that allow us to substantially utilize or pay for the entire asset over its estimated useful life. Finance lease assets are recorded in property, plant and equipment, net, and finance lease liabilities within other accrued liabilities and other liabilities on our Condensed Consolidated Balance Sheets. Finance lease assets are amortized in operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term, with the interest component for lease liabilities included in interest expense and recognized using the effective interest method over the lease term.
Operating leases are recorded in other assets and operating lease liabilities, current and non-current on our Condensed Consolidated Balance Sheets. Operating lease assets are amortized on a straight-line basis in operating expenses over the lease term.
Our 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 includes it in the initial measurement of our leased assets and corresponding liabilities. Our 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.
Our 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 leases for arrangements with an initial term of more than 12 months, lease term, and discount rates ($000):
Three Months Ended September 30, 2023Three Months Ended
September 30, 2022
Finance lease cost
Amortization of right-of-use assets$417 $417 
Interest on lease liabilities268 288 
Total finance lease cost685 705 
Operating lease cost12,937 12,848 
Total lease cost$13,622 $13,553 
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating cash flows from finance leases$268 $288 
Operating cash flows from operating leases12,268 12,679 
Financing cash flows from finance leases379 341 
Weighted-Average Remaining Lease Term (in Years)
Finance leases8.39.3
Operating leases7.26.2
Weighted-Average Discount Rate
Finance leases5.6 %5.6 %
Operating leases5.8 %5.3 %
Leases Leases
We determine if an arrangement is a lease at inception for arrangements with an initial term of more than 12 months, and classify it as either finance or operating.
Finance leases are generally those that allow us to substantially utilize or pay for the entire asset over its estimated useful life. Finance lease assets are recorded in property, plant and equipment, net, and finance lease liabilities within other accrued liabilities and other liabilities on our Condensed Consolidated Balance Sheets. Finance lease assets are amortized in operating expenses on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term, with the interest component for lease liabilities included in interest expense and recognized using the effective interest method over the lease term.
Operating leases are recorded in other assets and operating lease liabilities, current and non-current on our Condensed Consolidated Balance Sheets. Operating lease assets are amortized on a straight-line basis in operating expenses over the lease term.
Our 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 includes it in the initial measurement of our leased assets and corresponding liabilities. Our 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.
Our 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 leases for arrangements with an initial term of more than 12 months, lease term, and discount rates ($000):
Three Months Ended September 30, 2023Three Months Ended
September 30, 2022
Finance lease cost
Amortization of right-of-use assets$417 $417 
Interest on lease liabilities268 288 
Total finance lease cost685 705 
Operating lease cost12,937 12,848 
Total lease cost$13,622 $13,553 
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating cash flows from finance leases$268 $288 
Operating cash flows from operating leases12,268 12,679 
Financing cash flows from finance leases379 341 
Weighted-Average Remaining Lease Term (in Years)
Finance leases8.39.3
Operating leases7.26.2
Weighted-Average Discount Rate
Finance leases5.6 %5.6 %
Operating leases5.8 %5.3 %