Leases (Notes)

6 Months Ended

Dec. 31, 2021

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 2 months 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. Total lease expenses consisted of rent and fixed fees of $2.5 million and $2.5 million for the three months ended December 31, 2021 and 2020, respectively, and rent and fixed fees of $5.0 million and $4.9 million for the six months ended December 31, 2021 and 2020, respectively.

The following table represents the weighted-average remaining lease term and discount rate information related to our operating leases as of December 31, 2021 and June 30, 2021:


	December 31, 2021		June 30, 2021
Weighted average remaining lease term	5.9 years		6.1 years
Weighted average discount rate	3.6	%	3.6	%

The following table represents the maturities of our operating lease liabilities as of December 31, 2021 and June 30, 2021:


	December 31, 2021		June 30, 2021
	(Dollars in Thousands)
Year Ending June 30,
2022	$	3,945	$	7,973
2023	8,635		8,024
2024	7,805		7,355
2025	5,447		5,353
2026	2,189		2,209
Thereafter	10,928		11,008
Total lease payments	38,949		41,922
Less: imputed interest	(4,957)		(5,472)
	$	33,992	$	36,450