LEASES

3 Months Ended

Sep. 30, 2023

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. We also have finance lease liabilities comprised of equipment lease arrangements with an average duration of 4 to 5 years all of which are currently being sublet. Leases with an initial term of 12 months or less are not recorded on our Condensed Consolidated Balance Sheets.

The following illustrates the Condensed Consolidated Balance Sheets information related to leases:


		As of September 30, 2023		As of June 30, 2023
Operating Leases	Balance Sheet Location
Operating lease right of use assets	Operating lease right of use assets	$	266,053	$	285,723

Operating lease liabilities (current)	Operating lease liabilities	$	90,418	$	91,425
Operating lease liabilities (noncurrent)	Long-term operating lease liabilities	252,629		271,579
Total operating lease liabilities		$	343,047	$	363,004

Finance Leases
Finance lease receivables (current)	Prepaid expenses and other current assets	$	5,492	$	6,362
Finance lease receivables (noncurrent)	Other assets	4,443		5,515
Total finance lease receivables		$	9,935	$	11,877

Finance lease liabilities (current)	Accounts payable and accrued liabilities	$	4,992	$	5,281
Finance lease liabilities (noncurrent)	Accrued liabilities	4,437		5,500
Total finance lease liabilities		$	9,429	$	10,781

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


	As of September 30, 2023		As of June 30, 2023
Weighted-average remaining lease term
Operating leases	5.49 years		5.62 years
Finance leases	2.22 years		2.40 years
Weighted-average discount rate
Operating leases	4.7	%	4.66	%
Finance leases	5.58	%	5.60	%

Lease Costs and Other Information

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


	Three Months Ended September 30,
	2023		2022
Operating lease cost	$	23,740	$	14,311
Short-term lease cost	1,155		387
Variable lease cost	1,135		579
Sublease income	(3,338)		(2,912)
Total lease cost	$	22,692	$	12,365

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 lease liabilities, and, as such, are excluded from the amounts below:


	Three Months Ended September 30,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases	$	27,699	$	17,740
Finance leases	$	1,486	$	—
Right of use assets obtained in exchange for new lease liabilities:
Operating leases	$	7,045	$	22,467

Maturity of Lease Liabilities

The following table presents the future minimum lease payments under our leases liabilities as of September 30, 2023:


Fiscal years ending June 30,	Operating Leases		Finance Leases
2024 (nine months ended)	$	79,726	$	4,232
2025	84,518		3,363
2026	62,278		1,937
2027	50,684		459
2028	39,505		—
Thereafter	70,926		—
Total lease payments	$	387,637	$	9,991
Less: Imputed interest	(44,590)		(562)
Total	$	343,047	$	9,429

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 $9.4 million over the remainder of Fiscal 2024 and $34.0 million thereafter.