Affirm Holdings Inc

7. Leases

We lease facilities under operating leases with various expiration dates through 2030. We have the option to renew or extend our leases. Certain lease agreements include the option to terminate the lease with prior written notice ranging from nine months toone year. As of December 31, 2023, we have not considered such provisions in the determination of the lease term, as it is not reasonably certain these options will be exercised. Leases have remaining terms that range from less thanone year toseven years.

Several leases require us to obtain standby letters of credit, naming the lessor as a beneficiary. These letters of credit act as security for the faithful performance by us of all terms, covenants and conditions of the lease agreement. The cash collateral and deposits for the letters of credit have been recognized as restricted cash in the interim condensed consolidated balance sheets and totaled $8.9 million and $9.7 million as of December 31, 2023 and June 30, 2023, respectively.

No impairment charge was incurred related to leases during the three months ended December 31, 2023. During the six months ended December 31, 2023, we decided to sublease a portion of our leased office space in San Francisco, resulting in an impairment charge of $0.8 million included in general and administrative expense on our interim consolidated statements of operations and comprehensive loss. No impairment charges were incurred in the three and six months ended December 31, 2022.

Operating lease expense is as follows (in thousands):

(1)Lease expenses for our short-term leases were immaterial for the periods presented.

We have subleased a portion of our leased facilities. Sublease income totaled $1.2 million and $2.1 million during the three and six months ended December 31, 2023, respectively, and $0.9 million and $1.7 million during the three and six months ended December 31, 2022, respectively.

Lease term and discount rate information are summarized as follows:

As of December 31, 2023, future minimum lease payments are as follows (in thousands):