Leases Policies (Policies)

9 Months Ended

Mar. 31, 2020

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 ten years, some of which include options to extend the leases for up to five years, and some of which include the option to terminate the leases upon advanced notice of 30 days or more. 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 lease 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.

Operating lease costs are recognized on a straight-line basis over the term of the lease. The components of lease expenses for the three and nine months ended March 31, 2020 were as follows:



	Three Months Ended March 31, 2020		Nine Months Ended March 31, 2020
	(Dollars in Thousands)
Operating lease costs (1)	$	2,443	$	7,012
Total lease costs	$	2,443	$	7,012

________

(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:



	March 31, 2020
Weighted average remaining lease term	6.0 years
Weighted average discount rate	4.5	%

The following table represents the maturities of our operating lease liabilities as of March 31, 2020 and June 30, 2019:



	March 31, 2020			June 30, 2019 (1)
	(Dollars in Thousands)
Year Ending June 30,
2020	$	1,309		$	8,399
2021	8,731			7,820
2022	7,869			6,514
2023	7,447			5,862
2024	7,206			4,932
Thereafter	12,873			3,307
Total lease payments	45,435			36,834
Less: imputed interest	(6,113		)	—
	$	39,322		$	36,834

________

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