Leases

12 Months Ended

Jun. 30, 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:



	2020
Operating lease expense	$	50,267
Short-term lease cost	8,566
Variable lease cost	5,108
Total lease cost	$	63,941

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



	2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	48,562
Right-of-use assets obtained in exchange for operating lease obligations	41,069

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



	2020
Operating lease right-of-use assets (included within Investments and other assets)	$	138,601

Current operating lease liabilities (included within Other accrued liabilities)	$	43,327
Long-term operating lease liabilities (included within Other liabilities)	96,446
Total operating lease liabilities	$	139,773

Weighted average remaining lease term	5.2 years
Weighted average discount rate	2.1		%

Maturities of lease liabilities at June 30, 2020 are as follows:



	Operating Leases
2021	$	45,694
2022	33,212
2023	21,593
2024	13,749
2025	10,227
Thereafter	23,775
Total operating lease payments	$	148,250
Less imputed interest	8,477
Total operating lease liabilities	$	139,773

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.

Rental expense in 2019 and 2018 was $126,752 and $126,940, respectively.