Leases

3 Months Ended

Sep. 30, 2019

We primarily enter into lease agreements for office space, distribution centers, certain manufacturing facilities and equipment. The majority of our leases are operating leases. Finance leases are immaterial to our Consolidated Financial Statements. In addition, leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheet. Certain leases contain options that provide us with the ability to extend the lease term. Such options are included in the lease term when it is reasonably certain that the option will be exercised. When accounting for leases, we combine payments for leased assets, related services and other components of a lease. Payments within certain lease agreements are adjusted periodically for changes in an index or rate.

The discount rate implicit within our leases is generally not determinable and therefore we determine the discount rate based on our incremental borrowing rate. The incremental borrowing rate for our leases is determined based on lease term and the currency in which lease payments are made.

The components of lease expense are as follows:



	Three Months Ended
	September 30, 2019
Operating lease expense	$	11,951
Short-term lease cost	2,325
Variable lease cost	1,274
Total lease cost	$	15,550

Supplemental cash flow information related to operating leases are as follows:



	Three Months Ended
	September 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	11,850
Right-of-use assets obtained in exchange for operating lease obligations	17,217

Supplemental balance sheet information related to operating leases is as follows:



	September 30, 2019
Operating lease right-of-use assets (included within Investments and other assets)	$	136,769

Current operating lease liabilities (included within Other accrued liabilities)	$	38,658
Long-term operating lease liabilities (included within Other liabilities)	97,339
Total operating lease liabilities	$	135,997

Weighted average remaining lease term	5.52 years
Weighted average discount rate	2.12		%

Maturities of lease liabilities at September 30, 2019 are as follows:



	Operating Leases
2020	$	31,967
2021	33,334
2022	24,173
2023	15,877
2024	10,442
2025	7,958
Thereafter	21,946
Total operating lease payments	$	145,697
Less imputed interest	9,700
Total operating lease liabilities	$	135,997

Future minimum rental commitments as of June 30, 2019, under non-cancelable operating leases, which expire at various dates, are as follows: 2020-$45,920; 2021-$31,115; 2022-$21,625; 2023-$13,228; 2024-$7,591 and after 2024-$22,723.