Commitments and Contingencies

12 Months Ended

Jun. 30, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

The Company leases its headquarters and international office space and, in some cases, is obligated for its proportionate share of utilities and other defined operating expenses of the related building. The Company records rent expense for its operating leases on a straight-line basis from the lease commencement date as specified in the lease agreement until the end of the base lease term. The Company has a facility lease that allows for free rent and escalating rental payments. The incentives are considered reductions of lease expense and are recognized on a straight-line basis over the lease term. Straight-line expenses that are greater than the actual amount paid are recorded as deferred rent and reversed over time. Incentive payments received under these leases are recorded as deferred rent and amortized against rent expense over the remaining term of the lease. Office rent expense, net of subtenant offsets, for the Company’s domestic and international offices for the years ended June 30, 2010, 2011 and 2012, was approximately $1.7 million, $1.8 million, and $2.1 million, respectively.

Future minimum lease payments, net of subtenant offsets, at June 30, 2012 under the operating leases for worldwide office space are as follows (in thousands):

	Future Minimum Lease Payments		Subtenant Offset to Future Minimum Lease Payments		Net Future Minimum Lease Payments
2013	$	1,464	$	139	$	1,325
2014		1,449		––		1,449
2015		1,470		––		1,470
2016		1,517		––		1,517
2017		1,564		––		1,564
Thereafter		2,567		––		2,567
	$	10,031	$	139	$	9,892

The Company is involved in various legal proceedings which arise from time to time in the normal course of business. While the ultimate results of such matters generally cannot be predicted with certainty, management does not expect any such matters to have a material adverse effect on the consolidated financial position and results of operations as of June 30, 2012.