LEASES
The Company leases office space under operating lease agreements scheduled to expire at various dates. Operating lease expense for the years ended June 30, 2023, 2022 and 2021 was $11.4 million, $10.8 million, and $10.6 million, respectively.
Supplemental information related to the Company’s operating leases is as follows:
| | | | | | | | | | | | | | |
| | At June 30, |
| (Dollars in thousands) | | 2023 | | 2022 |
| Right-of-use assets | | $ | 63,565 | | | $ | 69,196 | |
| Lease liabilities | | 69,630 | | | 74,878 | |
| Weighted-average remaining lease term | | 6.57 years | | 7.53 years |
| Weighted-average discount rate | | 3.00 | % | | 2.79 | % |
Supplemental cash flow information related to leases is as follows:
| | | | | | | | | | | | | | | | | |
| For the Year Ended June 30, |
| (Dollars in thousands) | 2023 | | 2022 | | 2021 |
| Cash paid for amounts included in the measurement of lease liabilities for operating leases—operating cash flows | $ | 10,658 | | | $ | 9,888 | | | $ | 8,875 | |
Maturities of Operating Lease Liabilities. The Company leases office space under operating lease agreements scheduled to expire at various dates. The following table represents maturities of lease liabilities as of June 30, 2023:
| | | | | |
| (Dollars in thousands) | |
| Within one year | $ | 11,581 | |
| After one year and within two years | 11,807 | |
| After two years and within three years | 11,504 | |
| After three years and within four years | 11,595 | |
| After four years and within five years | 10,304 | |
| After five years | 20,200 | |
| Total lease payments | 76,991 | |
| Less: amount representing interest | (7,361) | |
| Total Lease Liability | $ | 69,630 | |
As of June 30, 2023, the Company is in compliance with all covenants contained in lease agreements.
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.