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Leases | 12 Months Ended
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Jun. 30, 2024
Leases [Abstract] |
Leases | Leases The following table summarizes the ROU assets and lease liabilities recorded on the Company’s consolidated balance sheets as of June 30, 2024 and 2023:
|  |  |  | As of |  |
|  |  |  | June 30, 2024 |  | June 30, 2023 |  |
ROU assets |  |  |  | $ | 106,468 |  |  | $ | 84,912 |  |  |
Lease liabilities: |  |  |  |  |  |  |  |
Operating leases, current |  |  |  | 18,548 |  |  | 10,127 |  |  |
Operating leases, non-current |  |  |  | 128,022 |  |  | 110,259 |  |  |
Total lease liabilities |  |  |  | $ | 146,570 |  |  | $ | 120,386 |  |  |
The following table summarizes the activity recorded within the Company’s consolidated statements of operations for Fiscal Years 2024, 2023 and 2022:
|  | Line Item in the Company’s Consolidated Statements of Operations |  | Years Ended June 30, |  |
|  |  | 2024 |  | 2023 |  | 2022 |  |
Operating lease cost |  | Direct operating expenses |  | $ | 3,984 |  |  | $ | 1,676 |  |  | $ | 1,287 |  |  |
Operating lease cost |  | Selling, general and administrative expenses |  | 14,549 |  |  | 15,925 |  |  | 16,977 |  |  |
Variable lease cost |  | Direct operating expenses |  | 1,740 |  |  | — |  |  | — |  |  |
Variable lease cost |  | Selling, general and administrative expenses |  | 28 |  |  | 1 |  |  | 20 |  |  |
Total lease cost |  | $ | 20,301 |  |  | $ | 17,602 |  |  | $ | 18,284 |  |  |
The Company excluded its ground lease with a subsidiary of Venetian Venue Propco, LLC (“The Venetian”) associated with Sphere in Las Vegas from its ROU assets and lease liabilities balances as the ground lease will not have any fixed rent. If certain return objectives are achieved, The Venetian will receive 25% of the after-tax cash flow in excess of such objectives in the form of variable rent. The Venetian paid the Company $75,000 to help fund the construction costs, including the cost of a pedestrian bridge that links Sphere to The Venetian Expo. The 50-year fixed term commenced on July 14, 2023. Supplemental cash flow information related to operating leases is as follows:
|  | Years Ended June 30, |  |
|  | 2024 |  | 2023 |  | 2022 |  |
Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 19,000 |  |  | $ | 12,332 |  |  | $ | 14,400 |  |  |
Lease assets obtained in exchange for new lease obligations |  | 33,900 |  |  | 6,435 |  |  | 43,834 |  |  |
For Fiscal Years 2024 and 2022, the Company received $5,833 and $17,697, respectively, of tenant incentives from a landlord for capital expenditures on behalf of the Company. There were no tenant incentives received in Fiscal Year 2023. Maturities of operating lease liabilities are as follows:
|  | As of June 30, 2024
Fiscal year ending June 30, 2025 |  | $ | 19,555 |
Fiscal year ending June 30, 2026 |  | 19,438 |
Fiscal year ending June 30, 2027 |  | 15,866 |
Fiscal year ending June 30, 2028 |  | 16,020 |
Fiscal year ending June 30, 2029 |  | 16,574 |
Thereafter |  | 118,613 |
Total lease payments |  | 206,066 |
Less imputed interest |  | 59,496 |
Total lease liabilities |  | $ | 146,570 |
The weighted average remaining lease term and weighted average discount rate for our operating leases as of June 30, 2024 and 2023 were as follows:
|  | As of |  |
|  | June 30, 2024 |  | June 30, 2023 |  |
Weighted average remaining lease term (in years) |  | 11.4 |  | 12.1 |  |
Weighted average discount rate |  | 5.89 | % |  | 5.38 | % |  |
As of June 30, 2024, the Company’s existing operating leases, which are recorded on the accompanying financial statements, have remaining lease terms ranging from 0.2 years to 17.6 years. Lessor Arrangements The Company has sublease arrangements for office and storage spaces where the operating lease revenue is recognized on a straight-line basis over the lease term. The following table summarizes the Company’s sublease revenues for Fiscal Years 2024, 2023 and 2022:
|  | Years Ended June 30,
|  | 2024 |  | 2023 |  | 2022
Sublease arrangements |  | $ | 3,028 |  |  | $ | 2,610 |  |  | $ | 1,900 |
The maturities of operating lease cash flows to be received on an undiscounted basis for non-cancelable subleases are as follows:
|  | As of June 30, 2024
Fiscal year ending June 30, 2025 |  | $ | 2,813 |
Fiscal year ending June 30, 2026 |  | 2,084 |
Total future minimum receipts |  | $ | 4,897 |

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- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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