Leases

6 Months Ended

Dec. 31, 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 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		Six Months Ended
	December 31, 2019		December 31, 2019
Operating lease expense	$	12,879	$	24,830
Short-term lease cost	2,109		4,434
Variable lease cost	1,685		2,959
Total lease cost	$	16,673	$	32,223

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



	Three Months Ended		Six Months Ended
	December 31, 2019		December 31, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	12,732	$	24,582
Right-of-use assets obtained in exchange for operating lease obligations	8,730		25,947

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



	December 31, 2019
Operating lease right-of-use assets (included within Investments and other assets)	$	155,869

Current operating lease liabilities (included within Other accrued liabilities)	$	42,661
Long-term operating lease liabilities (included within Other liabilities)	112,442
Total operating lease liabilities	$	155,103

Weighted average remaining lease term	6.4 years
Weighted average discount rate	2.3		%

Maturities of lease liabilities at December 31, 2019 are as follows:



	Operating Leases
2020	$	24,277
2021	40,670
2022	29,237
2023	19,609
2024	12,439
Thereafter	43,544
Total operating lease payments	$	169,776
Less imputed interest	14,673
Total operating lease liabilities	$	155,103

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.