LEASES

12 Months Ended

Jun. 30, 2023

The Company has entered into agreements under which we lease various real estate spaces in North America, Europe and Asia Pacific, under non-cancellable leases that expire on various dates through fiscal 2036. Some of our 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 June 30, 2023, we included such options in determining the lease terms for certain of our leases as we were reasonably certain that we would exercise those options. Most of our leases require us to pay certain operating expenses in addition to base rent, such as taxes, insurance and maintenance costs.

The following table summarizes our lease costs for fiscal years ended June 30, 2023 and 2022 (in thousands):


		June 30,
		2023		2022
Operating lease costs:	Financial Statement Classification
Fixed lease costs	Operating expenses	$	11,199	$	9,447
Fixed lease costs	Cost of revenues	4,030		4,352
Variable lease costs	Operating expenses	548		811
Variable lease costs	Cost of revenues	555		905
Total lease costs		$	16,332	$	15,515

The operating lease costs in the table above include costs for long-term and short-term leases. Total short-term costs for fiscal years June 30, 2023 and 2022 were $0.6 million and $0.5 million, respectively. 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 fiscal years June 30, 2023 and 2022, the cash paid for amounts associated with our operating lease liabilities were approximately $16.1 million and $14.4 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 our undiscounted future fixed payment obligations under our recognized operating leases and a reconciliation to the operating lease liabilities as of June 30, 2023:


Fiscal 2024	$	15,714
Fiscal 2025	14,402
Fiscal 2026	10,120
Fiscal 2027	5,745
Fiscal 2028	3,809
Thereafter	15,079
Total future fixed operating lease payments	$	64,870

Less: Imputed interest	$	4,485
Total operating lease liabilities	$	60,385

Weighted-average remaining lease term - operating leases	Seven years
Weighted-average discount rate - operating leases	2.7		%