XML 32 R15.htm IDEA: XBRL DOCUMENT
v3.20.2

LEASES | 12 Months Ended
--- | ---
Jun. 30, 2020
Leases [Abstract] |
LEASES | LEASES We enter into operating leases, both domestically and internationally, for certain facilities, automobiles, data centers and equipment for use in the ordinary course of business. The duration of the majority of these leases generally range from 1 to 10 years, some of which include options to extend for an additional 3 to 5 years after the initial term. Additionally, the land upon which our headquarters in Waterloo, Ontario, Canada is located, is leased from the University of Waterloo for a period of 49 years beginning in December 2005, with an option to renew for an additional term of 49 years. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets and we do not have any material finance leases. We account for a contract as a lease when we have the right to direct the use of the asset for a period of time while obtaining substantially all of the asset’s economic benefits. We determine the initial classification and measurement of our right of use (ROU) assets and lease liabilities at the lease commencement date and thereafter if modified. ROU assets represent our right to control the underlying assets under lease, and the lease liability is our obligation to make the lease payments related to the underlying assets under lease, over the contractual term. ROU assets and lease liabilities are recognized on the Consolidated Balance Sheets based on the present value of future minimum lease payments to be made over the lease term. When available, we will use the rate implicit in the lease to discount lease payments to present value. However, real estate leases generally do not provide a readily determinable implicit rate, therefore, we must estimate our incremental borrowing rate to discount the lease payments. We estimate our incremental borrowing rate based on a collateralized basis with similar terms and payments, in an economic environment where the leased asset is located. The ROU asset equals the lease liability, adjusted for any initial direct costs, prepaid rent and lease incentives. Fixed lease costs are included in the recognition of ROU assets and lease liabilities. Variable lease costs are not included in the measurement of the lease liability. These variable lease payments are recognized in the Consolidated Statements of Income in the period in which the obligation for those payments is incurred. Consistent with previous lease accounting rules under ASC Topic 840, lease expense for minimum lease payments continue to be recognized in the Consolidated Statements of Income on a straight-line basis over the lease term. We have not elected the practical expedient to combine lease and non-lease components in the determination of lease costs for our facility leases. For all other asset classes, we have elected the practical expedient to combine the lease and the non-lease components. The lease liability includes lease payments related to options to extend or renew the lease term only if we are reasonably certain we will exercise those options. Our leases typically do not contain any material residual value guarantees or restrictive covenants. In certain circumstances, we sublease all or a portion of a leased facility, to various other companies through a sublease agreement. Lease Costs and Other Information The following illustrates the various components of operating lease costs for the period indicated:
| Year Ended June 30, 2020
Operating lease cost | $ | 68,705 |
Short-term lease cost | 1,178 |
Variable lease cost | 3,536 |
Sublease income | (6,035 | )
Total lease cost | $ | 67,384 |
The following table summarizes the weighted average remaining lease term and discount rate as of June 30, 2020:
Weighted-average remaining lease term | 6.18 years |
Weighted-average discount rate | 3.12 | %
Supplemental Cash Flow Information The following table presents supplemental information relating to cash flows arising from lease transactions. Cash payment made for variable lease cost and short-term lease are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below:
| Year Ended June 30, 2020
Cash paid for amounts included in the measurement of operating lease liabilities: | $ | 71,900 |
Right of use assets obtained in exchange for new operating lease liabilities(1) : | $ | 32,328 |
(1) Excludes the impact of $60.1 million of ROU assets acquired as part of the acquisition of Carbonite and $2.9 million of ROU assets acquired as part of the acquisition of XMedius during the year ended June 30, 2020. Maturity of Lease Liabilities The following table presents the future minimum lease payments under our operating leases liabilities as of June 30, 2020:
Fiscal years ending June 30, |
2021 | $ | 71,577 |
2022 | 59,399 |
2023 | 45,778 |
2024 | 34,077 |
2025 | 25,121 |
Thereafter | 72,657 |
Total Lease payments | $ | 308,609 |
Less: Imputed interest | (27,373 | )
Total | $ | 281,236 |
Reported as: |
Current operating lease liabilities | 64,071 |
Non-current operating lease liabilities | 217,165 |
Total | $ | 281,236 |
Operating lease maturity amounts included in the table above do not include sublease income expected to be received under our various sublease agreements with third parties. Under the agreements initiated with third parties, we expect to receive sublease income of $7.6 million in Fiscal 2021, and $19.5 million thereafter. These amounts do not include any potential sublease income from facilities vacated during the fourth quarter of Fiscal 2020 under our COVD-19 restructuring plan. The following table presents the future minimum lease payments under our operating leases, based on the expected due dates of the various agreements as of June 30, 2019, as previously reported in our Annual Report on Form 10-K for the year ended June 30, 2019, prior to the adoption of Topic 842:
Fiscal years ending June 30, |
2020 | $ | 72,853 |
2021 | 59,451 |
2022 | 46,943 |
2023 | 33,871 |
2024 | 25,570 |
Thereafter | 80,163 |
Total minimum lease payments (1) | $ | 318,851 |
(1) Net of $30.7 million of sublease income to be received from properties which we have subleased to third parties.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration