LEASES

9 Months Ended

Mar. 31, 2022

LEASESWe 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 ranges 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 our Condensed Consolidated Balance Sheets and we do not have any material finance leases.

Lease Costs and Other Information

The following illustrates the various components of operating lease costs for the period indicated:


	Three Months Ended March 31,				Nine Months Ended March 31,
	2022		2021		2022		2021
Operating lease cost	$	16,158	$	16,065	$	47,121	$	47,327
Short-term lease cost	223		222		532		724
Variable lease cost	891		852		2,056		2,152
Sublease income	(3,087)		(1,569)		(6,945)		(4,762)
Total lease cost	$	14,185	$	15,570	$	42,764	$	45,441

The weighted average remaining lease term and discount rate for the periods indicated below were as follows:


	As of March 31, 2022		As of June 30, 2021
Weighted-average remaining lease term	6.17 years		6.47 years
Weighted-average discount rate	2.83	%	2.82	%

Supplemental Cash Flow Information

The following table presents supplemental information relating to cash flows arising from lease transactions. Cash payments made for variable lease costs and short-term leases are not included in the measurement of operating lease liabilities, and, as such, are excluded from the amounts below:


	Nine Months Ended March 31,
	2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	53,200	$	56,645
Right of use assets obtained in exchange for new operating lease liabilities (1) (2)	$	24,880	$	59,762

(1) The nine months ended March 31, 2022 excludes the impact of $8.1 million of right of use (ROU) assets obtained through the acquisition of Zix Corporation. See note 19 “Acquisitions” for further details including expected finalization of preliminary purchase price allocation.
(2) The nine months ended March 31, 2021 excludes the release of $22.3 million of lease liabilities relating to office space that was abandoned during the fourth quarter of Fiscal 2020 and has since been early terminated or assigned to a third party. These recoveries were recorded in “Special charges (recoveries)” in the Condensed Consolidated Statements of Income. Please see note 18 “Special Charges (Recoveries)”.

Maturity of Lease Liabilities

The following table presents the future minimum lease payments under our operating leases liabilities as of March 31, 2022:


Fiscal years ending June 30,
2022 (three months ended)	$	17,431
2023	62,747
2024	51,449
2025	40,519
2026	27,712
Thereafter	85,329
Total lease payments	$	285,187
Less: Imputed interest	(22,904)
Total	$	262,283
Reported as:
Current operating lease liabilities	$	59,182
Non-current operating lease liabilities	203,101
Total	$	262,283

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 $3.2 million over the remainder of Fiscal 2022 and $59.4 million thereafter.