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 non-cancellable 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 13 years, some of which include options to extend or terminate the leases.

Operating lease costs for the three and six months ended December 31, 2019 were $6.4 million and $12.4 million, respectively. Short-term and variable lease costs were not material for the three and six months ended December 31, 2019.

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


	December 31, ‎2019
Operating lease ROU assets	$	96,745

Operating lease liabilities, current portion		20,038
Operating lease liabilities, non-current portion		79,458
Total operating lease liabilities	$	99,496

Weighted-average remaining lease term (years)		7.4
Weighted-average discount rate		2.86	%

Future minimum lease payments under non-cancellable leases as of December 31, 2019 and for the periods ending June 30 of the years indicated below were as follows (in thousands):


In $000’s	Total		2020		2021		2022		2023		2024		2025		Thereafter
Minimum lease payments	$	114,513	$	11,747	$	20,482	$	16,022	$	13,025	$	9,952	$	8,202	$	35,083
Less: imputed interest		(15,017)
Total lease liabilities	$	99,496

As of December 31, 2019, we had additional operating lease commitments of $35.4 million for manufacturing facilities and office space that have not yet commenced. These leases will commence during the year ended June 30, 2020 and 2021 with lease terms of 2 years to 11 years.

We lease certain facilities and equipment 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 ended June 30, 2019, 2018, and 2017, respectively.

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


			Fiscal Years Ending June 30
In $000’s	Total		2020		2021		2022		2023		2024		Thereafter
Operating leases	$	98,013	$	23,500	$	17,161	$	12,403	$	9,478	$	7,916	$	27,555