LEASES

6 Months Ended

Dec. 31, 2022

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 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 December 31,				Six Months Ended December 31,
	2022		2021		2022		2021
Operating lease cost	$	13,991	$	15,572	$	28,302	$	30,963
Short-term lease cost	170		190		557		309
Variable lease cost	621		577		1,200		1,165
Sublease income	(2,904)		(1,969)		(5,816)		(3,858)
Total lease cost	$	11,878	$	14,370	$	24,243	$	28,579

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


	As of December 31, 2022		As of June 30, 2022
Weighted-average remaining lease term	5.73 years		6.13 years
Weighted-average discount rate	3.43	%	2.95	%

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:


	Six Months Ended December 31,
	2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	35,230	$	35,046
Right of use assets obtained in exchange for new operating lease liabilities (1)	$	25,061	$	20,416

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(1)The six months ended December 31, 2021 excludes the impact of $9.7 million of right of use assets obtained through the acquisition of Zix Corporation. See Note 19 "Acquisitions" for further details including the finalization of the purchase price allocation for the acquisition of Zix Corporation.

Maturity of Lease Liabilities

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


Fiscal years ending June 30,
2023 (six months ended)	$	33,886
2024	59,744
2025	47,063
2026	33,634
2027	30,697
Thereafter	66,621
Total lease payments	$	271,645
Less: Imputed interest	(24,537)
Total	$	247,108
Reported as:
Current operating lease liabilities	$	58,299
Non-current operating lease liabilities	188,809
Total	$	247,108

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 $6.3 million over the remainder of Fiscal 2023 and $43.5 million thereafter.