Leases (Notes)

3 Months Ended

Sep. 30, 2019

Leases

We have operating leases primarily for corporate offices, and other operating leases for data centers and certain equipment. We determine whether an arrangement is or contains a lease based on facts and circumstances present at the inception of the arrangement. We recognize lease expense on a straight-line basis over the lease term. Our leases have remaining lease terms of less than one year to approximately eight years, some of which may include options to extend the leases for up to five years, and some of the leases include the option to terminate the leases upon advanced notice of 90 days. If we are reasonably certain we will exercise an option to extend or terminate the lease, the time period covered by the extension or termination option is included in the lease term.

Operating leases liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in the lease contracts is typically not readily determinable. As such, we utilize the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as incentives received. We have lease agreements with lease and non-lease components, which are accounted for separately.

The components of lease expenses for the three months ended September 30, 2019 were as follows:



	Three Months Ended September 30, 2019
	(Dollars in Thousands)
Operating lease costs (1)	$	2,183
Variable lease costs	1
Total lease costs	$	2,184

________

(1) Operating lease costs include rent and fixed fees

The following table represents the weighted-average remaining lease term and discount rate information related to our operating leases:



	September 30, 2019
Weighted average remaining lease term	5.7 years
Weighted average discount rate	4.4	%

The following table represents the maturities of our operating lease liabilities as of September 30, 2019 and June 30, 2019:



	September 30, 2019			June 30, 2019 (1)
	(Dollars in Thousands)
Year Ending June 30,
2020	$	6,849		$	8,399
2021	7,725			7,820
2022	6,258			6,514
2023	6,059			5,862
2024	6,173			4,932
Thereafter	8,147			3,307
Total lease payments	41,211			36,834
Less: imputed interest	(5,984		)	—
	$	35,227		$	36,834

________

(1) As previously disclosed in our 2019 Annual Report on Form 10-K under the previous lease accounting standard, Topic 840, Leases.