LEASES

3 Months Ended

Sep. 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 September 30, 2023, we included such options in determining the lease terms for certain of our leases because we were reasonably certain that we would exercise the extension 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 the three months ended September 30, 2023 and 2022 (in thousands):


	Financial Statement Classification	Three Months Ended September 30,
		2023		2022
Operating lease costs:
Fixed lease costs	Operating expenses	$	2,936	$	2,804
Fixed lease costs	Cost of revenues	682		1,003
Variable lease costs	Operating expenses	199		—
Variable lease costs	Cost of revenues	280		14
Total lease costs		$	4,097	$	3,821

The operating lease costs in the table above include costs for long-term and short-term leases. Total short-term costs for the three months ended September 30, 2023 and 2022, were $0.2 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 the three months ended September 30, 2023 and 2022, cash paid for amounts associated with the Company's operating lease liabilities were approximately $4.3 million and $3.6 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 September 30, 2023:


Remainder of Fiscal 2024	$	12,618
Fiscal 2025	14,403
Fiscal 2026	10,110
Fiscal 2027	6,000
Fiscal 2028	4,606
Thereafter	15,079
Total future fixed operating lease payments	$	62,816

Less: Imputed interest	$	4,526
Total operating lease liabilities	$	58,290

Weighted-average remaining lease term - operating leases	6 years
Weighted-average discount rate - operating leases	2.9		%