Commitments and Contingencies

3 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Leases

On July 1, 2019, we adopted the new accounting standard related to leases. We determine if any arrangement is, or contains, a lease at its inception based on whether or not we have the right to control the asset during the contract period. We are a lessee in any lease contract when we obtain the right to control the asset.

We determine the lease term by assuming the exercise of options that are reasonably certain. Leases with a lease term of 12 months or less at inception are not reflected in our balance sheet and those lease costs are expensed on a straight-line basis over the respective term. Leases with a term greater than 12 months are reflected as non-current right-of-use assets and current and non-current lease liabilities in our consolidated balance sheets. Current lease liabilities are classified as a component of accrued expenses and other current liabilities.

As the implicit interest rate in our leases is generally not known, we use our incremental borrowing rate as the discount rate for purposes of determining the present value of our lease liabilities. Our determination of the incremental borrowing rate takes into consideration the expected term of the lease, the effect of the currency in which the lease is denominated and the rate of interest we would expect to incur on a collateralized debt instrument. At September 30, 2019, our weighted average discount rate was 4.9%.

When our contracts contain lease and fixed payment non-lease components, we account for both components as a single lease component.

We lease office space in cities worldwide under facility leases that expire at various dates. We are typically required to pay certain incremental operating costs above the base rent for any facility lease. We also have a variety of data center locations and, to a lesser extent, vehicle and equipment leases. Our facility leases represent the substantial majority of our operating leases and often include renewal options that we can exercise unilaterally. At September 30, 2019, renewal options ranged from 3 months to 10 years.

At September 30, 2019, all of our leases were operating leases and had a weighted average remaining lease term of 6.4 years.

Additional information of our lease activity, as of and for the three months ended September 30, 2019 is as follows:



Operating leases:	Three Months Ended September 30, 2019
	(in thousands)
Operating lease cost	$	1,916
Short-term lease cost	212
Variable lease cost	495
Sublease income	(124		)
Total lease cost	$	2,499



	Three Months Ended September 30, 2019
	(in thousands)
Right-of-use assets, net	$	25,224

Operating lease liabilities, current ⁽¹⁾	$	6,045
Operating lease liabilities, non-current	21,993
Total operating lease liabilities	$	28,038

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⁽¹⁾	Included as a component of accrued expenses and other current liabilities.



	Three Months Ended September 30, 2019
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities	$	1,764
Right-of-use assets obtained in exchange for lease obligations	$	262

Maturities of lease liabilities at September 30, 2019 were as follows:



For the year ending June 30,	Operating Leases
	(in thousands)
2020	$	5,437
2021	7,015
2022	4,992
2023	3,528
2024	2,671
Thereafter	9,632
Total lease payments	33,275
Less imputed interest	(5,237		)
Total lease liabilities	$	28,038

As of September 30, 2019, we have additional operating leases that have not yet commenced of $2.7 million. These operating leases will commence by fiscal year 2021 and have lease terms of 3 years to 12 years.

Legal Matters

We are, from time to time, a party to legal proceedings and claims that arise out of the ordinary course of our business. We are not currently a party to any material legal proceedings.