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 March 31, 2024, 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 $8.8 million and $9.7 million as of March 31, 2024 and June 30, 2023, respectively.

No impairment charge was incurred related to leases during the three months ended March 31, 2024. During the nine months ended March 31, 2024, 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 nine months ended March 31, 2023.

Operating lease expense is as follows (in thousands):

(1)Lease expenses for our short-term leases were immaterial for the three and nine months ended March 31, 2024.

(2)During the three and nine months ended March 31, 2023, we incurred charges of $4.7 million, within restructuring and other, on our interim consolidated statements of operations, related to a reduction to our ROU lease assets which were attributed to certain leased space we were no longer utilizing for our business operations.

We have subleased a portion of our leased facilities. Sublease income totaled $1.3 million and $3.3 million during the three and nine months ended March 31, 2024, respectively, and $0.9 million and $2.6 million during the three and nine months ended March 31, 2023, respectively.

Lease term and discount rate information are summarized as follows:

As of March 31, 2024, future minimum lease payments are as follows (in thousands):