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Leases
6 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases LEASESThe majority of the Company’s leases are operating leases related to office space for which the Company recognizes lease expense on a straight-line basis over the respective lease term. The Company leases office facilities in the United States in San Diego, California; Centennial, Colorado; Jacksonville, Florida; Overland Park, Kansas; Wilmington, North Carolina; Des Moines, Iowa; Oakland, California; Indianapolis, Indiana; and Monaca, Pennsylvania (note that SelectRx leases the Monaca facility from an Executive Vice President of SelectRx. The
Company expects to incur $3.6 million in total rental payments over the initial ten-year term plus an additional five-year extension option that it is reasonably certain to exercise.) The Company's operating leases have remaining lease terms of less than one year up to fourteen years.

Lease Costs—The components of lease costs were as follows periods presented:

Three Months Ended December 31,Six Months Ended December 31,
(in thousands)2021202020212020
Finance lease costs(1)
$42 $58 $84 $125 
Operating lease costs(2)
2,048 1,952 4,058 3,879 
Short-term lease costs15 58 28 125 
Variable lease costs(3)
256 449 469 714 
Sublease income(128)(170)(465)(235)
Total net lease costs$2,233 $2,347 $4,174 $4,608 
(1) Primarily consists of amortization of finance lease right-of-use assets and an immaterial amount of interest on finance lease liabilities recorded in operating costs and expenses and interest expense, net in the condensed consolidated statements of comprehensive income.
(2) Recorded in operating costs and expenses in the condensed consolidated statements of comprehensive income.
(3) Variable lease costs are not included in the measurement of the lease liability or right-of-use asset as they are not based on an index or rate and primarily represents common area maintenance charges and real estate taxes recorded in operating costs and expenses in the condensed consolidated statements of comprehensive income.

Maturities of Lease Liabilities—As of December 31, 2021, remaining maturities of lease liabilities for each of the next five fiscal years and thereafter are as follows:

(in thousands)Operating leasesFinance leasesTotal
Remainder fiscal 20224,552 97 4,649 
20238,861 27 8,888 
20249,237 — 9,237 
20259,254 — 9,254 
20267,040 — 7,040 
20275,666 — 5,666 
Thereafter12,884 — 12,884 
     Total undiscounted lease payments57,494 124 57,618 
Less: interest15,292 15,294 
     Present value of lease liabilities$42,202 $122 $42,324 

As of December 31, 2021, the Company had $3.5 million of undiscounted future payments for operating leases expected to commence between the third quarter of fiscal 2022 and the first quarter of fiscal 2023, with lease terms ranging from seven to ten years. These amounts are excluded from the tables above and not yet recognized in the condensed consolidated balance sheets.
Leases LEASESThe majority of the Company’s leases are operating leases related to office space for which the Company recognizes lease expense on a straight-line basis over the respective lease term. The Company leases office facilities in the United States in San Diego, California; Centennial, Colorado; Jacksonville, Florida; Overland Park, Kansas; Wilmington, North Carolina; Des Moines, Iowa; Oakland, California; Indianapolis, Indiana; and Monaca, Pennsylvania (note that SelectRx leases the Monaca facility from an Executive Vice President of SelectRx. The
Company expects to incur $3.6 million in total rental payments over the initial ten-year term plus an additional five-year extension option that it is reasonably certain to exercise.) The Company's operating leases have remaining lease terms of less than one year up to fourteen years.

Lease Costs—The components of lease costs were as follows periods presented:

Three Months Ended December 31,Six Months Ended December 31,
(in thousands)2021202020212020
Finance lease costs(1)
$42 $58 $84 $125 
Operating lease costs(2)
2,048 1,952 4,058 3,879 
Short-term lease costs15 58 28 125 
Variable lease costs(3)
256 449 469 714 
Sublease income(128)(170)(465)(235)
Total net lease costs$2,233 $2,347 $4,174 $4,608 
(1) Primarily consists of amortization of finance lease right-of-use assets and an immaterial amount of interest on finance lease liabilities recorded in operating costs and expenses and interest expense, net in the condensed consolidated statements of comprehensive income.
(2) Recorded in operating costs and expenses in the condensed consolidated statements of comprehensive income.
(3) Variable lease costs are not included in the measurement of the lease liability or right-of-use asset as they are not based on an index or rate and primarily represents common area maintenance charges and real estate taxes recorded in operating costs and expenses in the condensed consolidated statements of comprehensive income.

Maturities of Lease Liabilities—As of December 31, 2021, remaining maturities of lease liabilities for each of the next five fiscal years and thereafter are as follows:

(in thousands)Operating leasesFinance leasesTotal
Remainder fiscal 20224,552 97 4,649 
20238,861 27 8,888 
20249,237 — 9,237 
20259,254 — 9,254 
20267,040 — 7,040 
20275,666 — 5,666 
Thereafter12,884 — 12,884 
     Total undiscounted lease payments57,494 124 57,618 
Less: interest15,292 15,294 
     Present value of lease liabilities$42,202 $122 $42,324 

As of December 31, 2021, the Company had $3.5 million of undiscounted future payments for operating leases expected to commence between the third quarter of fiscal 2022 and the first quarter of fiscal 2023, with lease terms ranging from seven to ten years. These amounts are excluded from the tables above and not yet recognized in the condensed consolidated balance sheets.