Leases

12 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Leases

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 12 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:

	2021		2020
Operating lease expense	$	48,171	$	50,267
Short-term lease cost	7,674		8,566
Variable lease cost	5,835		5,108
Total lease cost	$	61,680	$	63,941

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

	2021		2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	47,080	$	48,562
Right-of-use assets obtained in exchange for operating lease obligations	41,637		41,069

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

	2021			2020
Operating lease right-of-use assets (included within Investments and other assets)	$	131,880		$	138,601
Current operating lease liabilities (included within Other accrued liabilities)	$	40,193		$	43,327
Long-term operating lease liabilities (included within Other liabilities)	93,904			96,446
Total operating lease liabilities	$	134,097		$	139,773
Weighted average remaining lease term	5.5 years			5.2 years
Weighted average discount rate	1.8		%	2.1		%

Maturities of lease liabilities at June 30, 2021 are as follows:

	Operating Leases
2022	$	42,101
2023	29,349
2024	19,633
2025	15,068
2026	10,700
Thereafter	24,715
Total operating lease payments	$	141,566
Less imputed interest	7,469
Total operating lease liabilities	$	134,097

Rental expense in 2019 was $126,752.