Leases

12 Months Ended

Jun. 30, 2022

11. Leases

The Company has operating leases primarily for its office facilities. The leases expire at various dates through fiscal year 2026, some of which include options to renew, with renewal terms of up to 5 years. The Company does not include any renewal options in the lease terms for calculating lease liability, as the renewal options allow the Company to maintain operational flexibility and the Company is not reasonably certain that it will exercise these renewal options at the time of the lease commencement.

The components of lease expense for fiscal years 2022, 2021 and 2020 were as follows (in thousands):

	Fiscal Year Ended June 30,
	2022		2021		2020
Operating lease expense	$	5,172	$	5,247	$	3,940
Short-term lease expense		619		785		1,119
Variable lease expense ⁽¹⁾		676		571		580
Total lease expense	$	6,467	$	6,603	$	5,639

⁽¹⁾	Variable lease expense for fiscal years 2022, 2021 and 2020 primarily included common area maintenance charges.

Supplemental information related to operating leases was as follows (in thousands, except lease term and discount rate):

	Fiscal Year Ended June 30,
	2022			2021			2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	6,206		$	6,066		$	3,675

Lease liabilities arising from obtaining right-of-use assets
Operating leases	$	564		$	6,981		$	423

Weighted average remaining lease term - operating leases	1.9 years			2.7 years			3.2 years
Weighted average discount rate - operating leases		5.1	%		5.0	%		4.6	%

The implicit rate within each lease is not readily determinable and therefore the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of the lease payments. The determination of the incremental borrowing rate requires judgement. The Company determined its incremental borrowing rate for each lease using indicative bank borrowing rates, adjusted for various factors including level of collateralization, term and currency to align with the terms of a lease.

Maturities of operating lease liabilities as of June 30, 2022 were as follows (in thousands):

Fiscal Year Ending June 30,	Amount
2023	$	5,855
2024		3,797
2025		860
2026		71
2027		—
Thereafter		—
Total minimum lease payments	$	10,583
Less imputed interest		(1,659	)
Present value of net minimum lease payments	$	8,924
Operating lease liabilities:
Current		5,066
Noncurrent		3,858
Total	$	8,924

Total future principal contractual obligations for operating lease commitments exceeded the undiscounted lease liability by $0.2 million as of June 30, 2022, primarily because the lease liability excluded short-term lease payments (due to the adoption of the short-term lease exemption).