LEASES

12 Months Ended

Jun. 30, 2024

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

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


		As of June 30, 2024		As of June 30, 2023
Operating Leases	Balance Sheet Location
Operating lease right of use assets	Operating lease right of use assets	$	219,774	$	285,723

Operating lease liabilities (current)	Operating lease liabilities	$	76,446	$	91,425
Operating lease liabilities (noncurrent)	Long-term operating lease liabilities	218,174		271,579
Total operating lease liabilities		$	294,620	$	363,004

Finance Leases
Finance lease receivables (current)	Prepaid expenses and other current assets	$	4,031	$	6,362
Finance lease receivables (noncurrent)	Other assets	2,329		5,515
Total finance lease receivables		$	6,360	$	11,877

Finance lease liabilities (current)	Accounts payable and accrued liabilities	$	3,173	$	5,281
Finance lease liabilities (noncurrent)	Accrued liabilities	2,327		5,500
Total finance lease liabilities		$	5,500	$	10,781

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


	As of June 30, 2024		As of June 30, 2023
Weighted-average remaining lease term
Operating leases	5.13 years		5.62 years
Finance leases	1.85 years		2.40 years
Weighted-average discount rate
Operating leases	5.00	%	4.66	%
Finance leases	5.47	%	5.60	%

Lease Costs and Other Information

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


	Year Ended June 30,
	2024		2023		2022
Operating lease cost	$	90,383	$	72,977	$	62,401
Short-term lease cost	2,920		4,195		687
Variable lease cost	5,084		3,488		2,694
Sublease income	(12,941)		(12,518)		(10,008)
Total lease cost	$	85,446	$	68,142	$	55,774

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:


	Year Ended June 30,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases	$	109,708	$	93,556	$	70,611
Finance leases	$	5,722	$	2,473	$	—
Right of use assets obtained in exchange for new lease liabilities:
Operating leases (1) (2)	$	30,869	$	29,551	$	39,155

___________________________

(1)The year ended June 30, 2023 excludes the impact of $129.7 million of right of use assets obtained through the Micro Focus Acquisition. See Note 19 “Acquisitions and Divestitures” for further details including the finalization of the purchase price allocation for the Micro Focus Acquisition.

(2)The year ended June 30, 2022 excludes the impact of $8.1 million of right of use assets obtained through the acquisition of Zix Corporation. See Note 19 “Acquisitions and Divestitures” for further details including the finalization of the purchase price allocation.

Maturity of Lease Liabilities

The following table presents the future minimum lease payments under our lease liabilities as of June 30, 2024:


Fiscal years ending June 30,	Operating Leases		Finance Leases
2025	$	88,768	$	3,367
2026	71,209		1,939
2027	58,163		459
2028	44,680		—
2029	25,025		—
Thereafter	43,439		—
Total lease payments	$	331,284	$	5,765
Less: Imputed interest	(36,664)		(265)
Total	$	294,620	$	5,500

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 $10.7 million in Fiscal 2025 and $24.0 million thereafter.