Leases (Policies)

12 Months Ended

Jun. 30, 2023

Leases

The Company has operating leases primarily for corporate offices, and other operating leases for data centers and certain equipment. The Company determines whether an arrangement is or contains a lease based on facts and circumstances present at the inception of the arrangement. The Company recognizes lease expense on a straight-line basis over the lease term. The Company's leases have remaining lease terms of less than one year to approximately 12 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 60 days or more. If the Company is reasonably certain they 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, the Company utilizes 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. The Company has lease agreements with lease and non-lease components, which are accounted for combined as one lease component.

Operating lease costs are recognized on a straight-line basis over the term of the lease. The components of total lease expense for fiscal 2023, 2022, and 2021 were as follows:


	Year Ended June 30, 2023		Nine Months Ended June 30, 2022		Year Ended September 30, 2021
	(Dollars in Thousands)
Operating lease expense	$	17,417	$	4,769	$	6,365
Variable lease expense	$	813	$	518	$	797
Short term lease expense	$	125	$	723	$	889

The following table summarizes the balances of the Company’s operating lease right-of-use assets and operating lease liabilities as of June 30, 2023 and 2022:


	June 30,
	2023		2022
	(Dollars in Thousands)
Operating lease right-of-use assets	$	67,642	$	78,286
Current operating lease liabilities	$	12,928	$	7,191
Non-current operating lease liabilities	$	55,442	$	71,933

The weighted-average remaining lease term for operating leases was nine years and the weighted-average discount rate was 3.0% as of June 30, 2023 and 2022, respectively.

The following table represents the future maturities of the Company's operating lease liabilities as of June 30, 2023:


Year Ending June 30,	(Dollars in Thousands)
2024	$	14,409
2025	10,472
2026	7,327
2027	6,578
2028	6,085
Thereafter	32,179
Total lease payments	77,050
Less: imputed interest	(8,680)
	$	68,370