LEASES

9 Months Ended

Mar. 31, 2021

The Company enters into agreements under which it leases various real estate spaces in North America, Europe and Asia Pacific, under non-cancellable leases that expire on various dates through fiscal 2029. Some of the Company’s leases include options to extend the term of such leases for a period from 12 months to 60 months, and/or have options to early terminate the lease. As of March 31, 2021, the Company included such options in determining the lease terms for certain of the Company’s leases because the Company was reasonably certain that it would exercise the extension options. Most of the Company’s leases require it to pay certain operating expenses in addition to base rent, such as taxes, insurance and maintenance costs.

The following table summarizes the Company’s lease costs for the three and nine months ended March 31, 2021 and 2020 (in thousands):


	Financial Statement Classification	Three Months Ended March 31,				Nine Months Ended March 31,
		2021		2020		2021		2020
Operating lease costs:
Fixed lease costs	Operating expenses	$	1,994	$	1,568	$	5,652	$	4,415
Fixed lease costs	Cost of revenues	507		515		1,525		1,553
Variable lease costs	Operating expenses	244		81		639		256
Variable lease costs	Cost of revenues	113		107		327		309
Total lease costs		$	2,858	$	2,271	$	8,143	$	6,533

The operating lease costs in the table above include costs for long-term and short-term leases. Total short-term costs for the three and nine months ended March 31, 2021 and 2020 were immaterial. Variable lease costs primarily include maintenance, utilities and operating expenses that are incremental to the fixed base rent payments and are excluded from the calculation of operating lease liabilities and ROU assets. For the three and nine months ended March 31, 2021, cash paid for amounts associated with the Company’s operating lease liabilities were approximately $2.8 million and $8.2 million, respectively. For the three and nine months ended March 31, 2020, cash paid for amounts associated with the Company’s operating lease liabilities were approximately $2.3 million and $6.6 million, respectively. Cash paid for amounts associated with the Company’s operating lease liabilities were classified as operating activities in the consolidated statement of cash flows.

The following table shows the Company’s undiscounted future fixed payment obligations under the Company’s recognized operating leases and a reconciliation to the operating lease liabilities as of March 31, 2021:


Remainder of Fiscal 2021	$	2,466
Fiscal 2022	9,343
Fiscal 2023	8,258
Fiscal 2024	7,820
Fiscal 2025	7,265
Thereafter	8,020
Total future fixed operating lease payments	$	43,172

Less: Imputed interest	$	3,099
Total operating lease liabilities	$	40,073

Weighted-average remaining lease term - operating leases	5 years
Weighted-average discount rate - operating leases	2.8		%