Leases

6 Months Ended

Jan. 31, 2022

The Company's lease obligations consist of operating leases for office facilities and equipment, with lease periods expiring through fiscal year 2032. Some leases include one or more options to renew. Lease renewals are not assumed in the determination of the lease term until the exercise of the renewal option is deemed to be reasonably certain.

Components of operating lease costs were as follows (in thousands):


	Three Months Ended January 31,				Six Months Ended January 31,
	2022		2021		2022		2021
Operating lease cost1	$	3,933	$	4,500	$	8,185	$	8,872
Variable lease cost	1,442		1,165		2,850		2,531
Sublease income	(356)		(397)		(746)		(792)
Net operating lease cost	$	5,019	$	5,268	$	10,289	$	10,611

(1) Lease expense for leases with an initial term of 12 months or less is excluded from the table above and was $0.3 million and $0.3 million for the three months ended January 31, 2022 and 2021, respectively, and $0.5 million and $0.6 million for the six months ended January 31, 2022 and 2021, respectively.

Future operating lease payments as of January 31, 2022 were as follows (in thousands):


Fiscal Year Ending July 31,
2022 (remainder of fiscal year)	$	7,445
2023	16,711
2024	16,615
2025	16,857
2026	17,006
Thereafter	67,609
Total future lease payments	142,243
Less imputed interest	(22,063)
Total lease liability balance	$	120,180

Supplemental information related to leases was as follows (in thousands, except for lease term and discount rate):


	January 31, 2022			July 31, 2021
Operating lease assets	$	91,780		$	97,447

Current portion of lease liabilities	$	11,239		$	11,624
Non-current portion of lease liabilities	108,941			115,374
Total lease liabilities	$	120,180		$	126,998

Weighted average remaining lease term (years)	8.30			8.74
Weighted average discount rate	4.10		%	4.20		%

Supplemental cash and non-cash information related to operating leases was as follows (in thousands):


	Three Months Ended January 31,				Six Months Ended January 31,
	2022		2021		2022		2021
Cash payments for operating leases	$	4,411	$	4,082	$	10,345	$	9,367
Operating lease assets obtained in exchange for lease liabilities	$	18	$	(2,703)	$	433	$	6,514

In March 2020, the Company entered into a new lease agreement for office space in Dublin, Ireland which commenced in July 2020. In December 2020, the Company exercised the early termination option that was included in the new lease agreement, which terminated the agreement for the existing office space in Dublin, Ireland, and resulted in a reduction of the operating lease asset and lease liability of approximately $2.9 million.