Leases

12 Months Ended

Jun. 30, 2022

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:


	2022		2021
Operating lease expense	$	46,026	$	48,171
Short-term lease cost	7,041		7,674
Variable lease cost	5,849		5,835
Total lease cost	$	58,916	$	61,680

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


	2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	45,371	$	47,080
Right-of-use assets obtained in exchange for operating lease obligations	50,925		41,637

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


	2022			2021
Operating lease right-of-use assets (included within Investments and other assets)	$	133,412		$	131,880

Current operating lease liabilities (included within Other accrued liabilities)	$	36,023		$	40,193
Long-term operating lease liabilities (included within Other liabilities)	100,337			93,904
Total operating lease liabilities	$	136,360		$	134,097

Weighted average remaining lease term	5.6 years			5.5 years
Weighted average discount rate	1.6		%	1.8		%

Maturities of lease liabilities at June 30, 2022 are as follows:


	Operating Leases
2023	$	37,876
2024	28,584
2025	23,299
2026	17,721
2027	10,633
Thereafter	25,483
Total operating lease payments	$	143,596
Less imputed interest	7,236
Total operating lease liabilities	$	136,360