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Leases
3 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Leases (9) Leases

We determine whether a contract is, or contains, a lease at inception. ROU assets represent our right to use an underlying asset during the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. We use our incremental borrowing rate based on the information available at lease commencement in determining the present value of unpaid lease payments. ROU assets also include any lease payments made at or before lease commencement and any initial direct costs incurred, and exclude any lease incentives received.

We determine the lease term as the noncancellable period of the lease, and may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recognized on the balance sheet. Some of our leases include variable lease payments that are based on costs incurred or actual usage, or adjusted periodically based on an index or a rate. Our leases do not contain any residual value guarantees and we do not account for lease and non-lease components as a single lease component. Operating leases are included in operating lease right-of-use assets and operating lease liabilities on our consolidated condensed balance sheets.

We lease certain office space, warehouses and distribution centers, manufacturing facilities, vehicles, and equipment with remaining lease terms ranging from less than 1 year to 14 years, some of which include options to extend or terminate the leases.

Operating lease costs for the three months ended September 30, 2019 were $6.0 million. Short-term and variable lease costs were not material for the three months ended September 30, 2019.

Supplemental balance sheet information related to operating leases was as follows (in thousands, except lease term and discount rate):

September 30,
2019

Operating lease ROU assets

$

81,650 

  

Operating lease liabilities, current portion

19,548 

Operating lease liabilities, non-current portion

65,838 

Total operating lease liabilities

$

85,386 

 

-

Future minimum lease payments under noncancelable leases as of September 30, 2019 and for the periods ending June 30:

2020

$

17,502 

2021

16,900 

2022

12,056 

2023

9,629 

2024

7,917 

2025

5,913 

Thereafter

24,988 

Total lease payments

$

94,905 

Less: imputed interest

(9,519)

Total lease liabilities

$

85,386 

Weighted-average remaining lease term (years)

7.37

Weighted-average discount rate

2.9%

As of September 30, 2019, we had additional operating lease commitments of $49.9 million for manufacturing facilities and office space that have not yet commenced. These leases will commence during the year ended June 30, 2020 with lease terms of 5 years to 11 years.

Disclosures related to periods prior to adopting the new lease guidance

Certain facilities and equipment are leased under operating leases expiring at various dates. Most of the operating leases contain renewal options. Total expense for all operating leases was $23.4 million, $21.1 million, and $20.1 million for the years 2018, 2017, and 2016, respectively.

Future minimum lease payments (including interest) under non-cancelable operating leases at June 30, 2019 were as follows (in thousands):

Fiscal Years

Operating Leases

2020

$

23,500 

2021

17,161 

2022

12,403 

2023

9,478 

2024

7,916 

Thereafter

27,555 

Total minimum lease payments

$

98,013