We enter into operating leases, both domestically and internationally, for certain facilities, automobiles, data centers and equipment for use in the ordinary course of business. The duration of the majority of these leases generally ranges from 1 to 10 years, some of which include options to extend for an additional 3 to 5 years after the initial term. Additionally, the land upon which our headquarters in Waterloo, Ontario, Canada is located is leased from the University of Waterloo for a period of 49 years beginning in December 2005, with an option to renew for an additional term of 49 years. We also have finance lease liabilities comprised of equipment lease arrangements with an average duration of 4 to 5 years of which all are currently being sublet. Leases with an initial term of 12 months or less are not recorded on our Consolidated Balance Sheets.


		As of June 30, 2025		As of June 30, 2024
Operating Leases	Balance Sheet Location
Operating lease right of use assets	Operating lease right of use assets	$	197,977	$	219,774

Operating lease liabilities (current)	Operating lease liabilities	$	75,914	$	76,446
Operating lease liabilities (non-current)	Long-term operating lease liabilities	189,949		218,174
Total operating lease liabilities		$	265,863	$	294,620

Finance Leases
Finance lease receivables (current)	Prepaid expenses and other current assets	$	1,867	$	4,031
Finance lease receivables (non-current)	Other assets	457		2,329
Total finance lease receivables		$	2,324	$	6,360

Finance lease liabilities (current)	Accounts payable and accrued liabilities	$	1,877	$	3,173
Finance lease liabilities (non-current)	Accrued liabilities	457		2,327
Total finance lease liabilities		$	2,334	$	5,500


	As of June 30, 2025		As of June 30, 2024
Weighted-average remaining lease term
Operating leases	4.59 years		5.13 years
Finance leases	1.23 years		1.85 years
Weighted-average discount rate
Operating leases	4.92	%	5.00	%
Finance leases	5.33	%	5.47	%


	Year Ended June 30,
	2025		2024		2023
Operating lease cost	$	82,174	$	90,383	$	72,977
Short-term lease cost	2,028		2,920		4,195
Variable lease cost	4,103		5,084		3,488
Sublease income	(11,254)		(12,941)		(12,518)
Total lease cost	$	77,051	$	85,446	$	68,142

The following table presents supplemental information relating to cash flows arising from lease transactions. Cash payments made for variable lease costs and short-term leases are not included in the measurement of lease liabilities, and, as such, are excluded from the amounts below:


	Year Ended June 30,
	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases	$	98,418	$	109,708	$	93,556
Finance leases	3,369		5,722		2,473
Right of use assets obtained in exchange for new lease liabilities:
Operating leases (1)	53,541		30,869		29,551

(1)The year ended June 30, 2023 excludes the impact of $129.7 million of right of use assets obtained through the Micro Focus Acquisition. See Note 19 “Acquisitions and Divestitures” for further details including the finalization of the purchase price allocation for the Micro Focus Acquisition.


Fiscal years ending June 30,	Operating Leases		Finance Leases
2026	$	86,661	$	1,947
2027	74,153		459
2028	53,427		—
2029	31,315		—
2030	18,105		—
Thereafter	30,950		—
Total lease payments	294,611		2,406
Less: Imputed interest	(28,748)		(72)
Total	$	265,863	$	2,334

Operating lease maturity amounts included in the table above do not include sublease income expected to be received under our various sublease agreements with third parties. Under the agreements initiated with third parties, we expect to receive sublease income of $9.6 million in Fiscal 2026 and $16.0 million thereafter.