Leases

9 Months Ended

Mar. 31, 2023

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 nine months to one year. As of March 31, 2023, 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 interim condensed consolidated balance sheets and totaled $9.7 million as of both March 31, 2023 and June 30, 2022.

There was no impairment expense incurred related to leases during the three and nine months ended March 31, 2023. For the three and nine months ended March 31, 2022 the impairment expense related to leases was not material to our interim consolidated statement of operations.

Operating lease expense is as follows (in thousands):


	Three Months Ended March 31,		Nine Months Ended March 31,
	2023	2022	2023	2022
Operating lease expense (1)	$8,325	$3,900	$15,841	$11,400

(1)During the three and nine months ended March 31, 2023, we incurred charges of $4.7 million, within restructuring charges, net, on our interim consolidated statements of operations, related to a reduction to our ROU lease assets which were attributed to certain leased space we are no longer utilizing for our business operations.

We have subleased a portion of our leased facilities. Sublease income totaled $0.9 million and $2.6 million during the three and nine months ended March 31, 2023, respectively, and $0.9 million and $2.3 million during the three and nine months ended March 31, 2022, respectively.

Lease term and discount rate information are summarized as follows:


												March 31, 2023
Weighted average remaining lease term (in years)												4.0
Weighted average discount rate												4.8%

Maturities of lease liabilities as of March 31, 2023 are as follows (in thousands) for the years ended:


2023 (remaining three months)	$	4,095
2024	16,504
2025	16,317
2026	15,371
2027 and thereafter	10,354
Total lease payments	62,641
Less imputed interest	(6,664)
Present value of lease liabilities	$	55,977