Leases

12 Months Ended

Jun. 30, 2022

We lease facilities under operating leases with various expiration dates through 2030. We have the option to renew or extend our leases. Certain lease agreements include the option to terminate the lease with prior written notice ranging from 180 days to one year. As of June 30, 2022, we have not considered such provisions in the determination of the lease term, as it is not reasonably certain these options will be exercised. Leases have remaining terms that range from less than one year to eight years.

Several leases require us to obtain standby letters of credit, naming the lessor as a beneficiary. These letters of credit act as security for the faithful performance by us of all terms, covenants and conditions of the lease agreement. The cash collateral and deposits for the letters of credit have been recognized as restricted cash in the consolidated balance sheets and totaled $9.7 million and $9.9 million as of June 30, 2022 and June 30, 2021, respectively.

As of June 30, 2022, right-of-use assets of $50.7 million were included in other assets, and the related operating lease liability totaled $65.7 million which was included in accrued expenses and other liabilities in the consolidated balance sheet.

The impairment expense related to leases during the year ended June 30, 2022 was not material to our consolidated statements of operations. For the year ended June 30, 2021, we recognized impairment expense of $11.5 million and for several of our operating lease right-of-use assets, included in general and administrative expense on our consolidated statements of operations and comprehensive loss. There was no impairment expense related to leases during the year ended June 30, 2020.

The components of operating lease expenses are as follows (in thousands):


	Year ended June 30,
	2022		2021		2020
Operating lease expense	$	15,200	$	15,300	$	13,700
Short-term lease expenses	400		1,100		1,200

We have subleased a portion of our leased facilities. Sublease income totaled $3.1 million during the year ended June 30, 2022. There was no sublease income for both the years ended June 30, 2021 and 2020.

Lease term and discount rate information are summarized as follows:


												June 30, 2022
Weighted average remaining lease term (in years)												4.9
Weighted average discount rate												4.7%

Maturities of operating lease liabilities as of June 30, 2022 are as follows (in thousands) for the years ended:


2023	$	16,445
2024	16,334
2025	16,119
2026	15,270
2027	2,680
2028 and thereafter	7,688
Total lease payments	74,536
Less imputed interest	(8,823)
Present value of total lease liabilities	$	65,713