Leases

12 Months Ended

Jun. 30, 2020

Leases [Abstract]

Operating Leases

Leases

The Company enters into lease arrangements for real estate, construction equipment and information technology equipment in the normal course of business. Real estate leases accounted for approximately 87% of all right-of-use assets as of June 30, 2020. 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 16 years. Construction equipment leases generally have "month-to-month" lease terms that automatically renew as long as the equipment remains in use.

The Company recorded $3.2 million of impairments to right-of-use assets related to leased office space that was closed in connection with the Company's 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 Year Ended
		June 30, 2020
Lease expense	Location of Expense in Statements of Income	(in thousands)
Operating lease expense	Cost of revenue and selling, general and administrative expenses	$	12,274
Short-term lease expense(1)	Cost of revenue	37,371
Total lease expense		$	49,645

(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 the Company's Condensed Consolidated Balance Sheets, were as follows:

	June 30, 2020
Maturity Analysis:	(in thousands)
Fiscal 2021	$	8,719
Fiscal 2022	5,430
Fiscal 2023	3,978
Fiscal 2024	3,010
Fiscal 2025	2,352
Thereafter	9,630
Total future operating lease payments	33,119
Less: imputed interest	(5,554)
Net present value of future lease payments	27,565
Less: current portion of operating lease liabilities	7,568
Non-current operating lease liabilities	$	19,997

The following is a summary of the weighted average remaining operating lease term and weighted average discount rate as of June 30, 2020:

Weighted-average remaining lease term (in years)	6.2 years
Weighted-average discount rate	5.6	%

Supplemental cash flow information related to leases is as follows:

	Fiscal Year Ended
	June 30, 2020
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating lease payments	$	12,798
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	36,984

During the third quarter of fiscal 2020, the Company received leasehold improvements of $2.5 million from a lessor as a tenant incentive. This incentive is considered to be a non-cash investing activity.