Leases

3 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

10. Leases

The Company has operating leases primarily for its office facilities. The leases expire at various dates through fiscal year 2026, some of which include options to renew, with renewal terms of up to 5 years. The Company does not include any renewal options in the lease terms for calculating lease liability, as the renewal options allow the Company to maintain operational flexibility and the Company is not reasonably certain that it will exercise these renewal options at the time of the lease commencement.

The components of lease expense were as follows (in thousands):

	Three Months Ended
	September 30, 2019
Operating lease expense	$	1,004
Variable lease expense (1)		144
Short-term lease expense		288
Total lease expense	$	1,436

⁽¹⁾ Variable lease expense for the three months ended September 30, 2019 primarily included common area maintenance charges.

Rent expense was $1.0 million during the three months ended September 30, 2018, which was recognized using the straight-line method over the term of a lease in accordance with legacy guidance.

Supplemental information related to operating leases was as follows (in thousands, except lease term and discount rate):

	Three Months Ended
	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	1,172
Lease liabilities arising from obtaining right-of-use assets
Operating leases	$	—
Weighted average remaining lease term - operating leases	4.6 years
Weighted average discount rate - operating leases		4.5	%

The implicit rate within each lease is not readily determinable and therefore the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of the lease payments. The determination of the incremental borrowing rate requires judgement. The Company determined its incremental borrowing rate for each lease using indicative bank borrowing rates, adjusted for various factors including level of collateralization, term and currency to align with the terms of a lease.

Maturities of operating lease liabilities were as follows (in thousands):

Fiscal Year Ending June 30,	September 30, 2019
2020 (remaining nine months)	$	2,569
2021		4,543
2022		4,264
2023		3,834
2024		1,810
Thereafter		183
Total minimum lease payments	$	17,203
Less imputed interest		(1,733	)
Present value of net minimum lease payments	$	15,470
Operating lease liabilities:
Current		3,620
Noncurrent		11,850
Total	$	15,470

Future annual minimum lease payments under noncancellable operating leases as of June 30, 2019 were as follows (in thousands):

	Operating
Fiscal Year Ending June 30,	Leases
2020	$	3,529
2021		4,263
2022		4,234
2023		3,801
2024		1,312
Thereafter		176
Total	$	17,315