Leases (Notes)

9 Months Ended

Mar. 31, 2022

Leases

We enter into lease arrangements for real estate, construction equipment and information technology equipment in the normal course of business. Real estate leases accounted for approximately 96% of all right-of-use assets as of March 31, 2022. Most real estate and information technology equipment leases generally have fixed payments that follow an agreed upon payment schedule and have remaining lease terms ranging from less than one year to 14 years. Construction equipment leases generally have "month-to-month" lease terms that automatically renew as long as the equipment remains in use.

The components of lease expense in the Condensed Consolidated Statements of Income are as follows:


		Three Months Ended				Nine Months Ended
		March 31, 2022		March 31, 2021		March 31, 2022		March 31, 2021
Lease expense	Location of Expense	(in thousands)
Operating lease expense	Cost of revenue and Selling, general and administrative expenses	$	1,867	$	1,743	$	5,837	$	6,542
Short-term lease expense(1)	Cost of revenue	6,216		6,772		17,079		19,020
Total lease expense		$	8,083	$	8,515	$	22,916	$	25,562

(1)Primarily represents the lease expense of construction equipment that is subject to month-to-month rental agreements with expected rental durations of less than one year.

The future undiscounted lease payments, as reconciled to the discounted operating lease liabilities presented in our Condensed Consolidated Balance Sheets, were as follows:


	March 31, 2022
Maturity Analysis:	(in thousands)
Remainder of Fiscal 2022	$	1,745
Fiscal 2023	5,211
Fiscal 2024	3,978
Fiscal 2025	3,483
Fiscal 2026	3,187
Thereafter	11,843
Total future operating lease payments	29,447
Imputed interest	(4,889)
Net present value of future lease payments	24,558
Less: current portion of operating lease liabilities	4,928
Non-current operating lease liabilities	$	19,630

The following is a summary of the weighted average remaining operating lease term and weighted average discount rate as of March 31, 2022:


Weighted-average remaining lease term (in years)	7.2 years
Weighted-average discount rate	5.2	%

Supplemental cash flow information related to leases is as follows:


	Nine Months Ended
	March 31, 2022
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease payments	$	6,197
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	3,065