Leases

9 Months Ended

Mar. 31, 2020

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		Nine Months Ended
	March 31, 2020		March 31, 2020
Operating lease expense	$	13,218	$	38,048
Short-term lease cost	1,814		6,248
Variable lease cost	999		3,958
Total lease cost	$	16,031	$	48,254

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



	Three Months Ended		Nine Months Ended
	March 31, 2020		March 31, 2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	12,522	$	37,104
Right-of-use assets obtained in exchange for operating lease obligations	3,262		29,209

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



	March 31, 2020
Operating lease right-of-use assets (included within Investments and other assets)	$	137,665

Current operating lease liabilities (included within Other accrued liabilities)	$	40,866
Long-term operating lease liabilities (included within Other liabilities)	97,317
Total operating lease liabilities	$	138,183

Weighted average remaining lease term	5.3 years
Weighted average discount rate	2.1		%

Maturities of lease liabilities at March 31, 2020 are as follows:



	Operating Leases
2020	$	11,818
2021	40,886
2022	29,494
2023	19,666
2024	12,377
Thereafter	32,548
Total operating lease payments	$	146,789
Less imputed interest	8,606
Total operating lease liabilities	$	138,183

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.