Leases

12 Months Ended

Jun. 30, 2023

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 most of our right-of-use assets as of June 30, 2023. 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 a year to 13 years. Construction equipment leases generally have "month-to-month" lease terms that automatically renew as long as the equipment remains in use.

In fiscal 2021 we recorded $0.5 million of impairments to right-of-use assets related to leased office space that was closed in connection with our restructuring activities, see Note 14 – Restructuring Costs for additional information.

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


		Fiscal Years Ended
		June 30, 2023		June 30, 2022		June 30, 2021
Lease expense	Location of Expense in Consolidated Statements of Income	(in thousands)
Operating lease expense	Cost of revenue and selling, general and administrative expenses	$	6,635	$	7,511	$	8,386
Short-term lease expense(1)	Cost of revenue	29,598		24,225		25,912
Total lease expense		$	36,233	$	31,736	$	34,298

(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 Consolidated Balance Sheets, were as follows:


	June 30, 2023
Maturity Analysis:	(in thousands)
Fiscal 2024	$	5,656
Fiscal 2025	4,283
Fiscal 2026	4,257
Fiscal 2027	4,172
Fiscal 2028	3,896
Thereafter	8,950
Total future operating lease payments	31,214
Imputed interest	(5,893)
Net present value of future lease payments	25,321
Less: current portion of operating lease liabilities	4,661
Non-current operating lease liabilities	$	20,660

The following is a summary of the weighted average remaining operating lease and finance lease term and weighted average discount rate as of June 30, 2023:


Weighted-average remaining lease term (in years)	6.6 years
Weighted-average discount rate	6.1	%

Supplemental cash flow information related to leases is as follows:


	Fiscal Year Ended
	June 30, 2023
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease payments	$	6,618
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	5,383