Leases

12 Months Ended

Sep. 30, 2022

The majority of the Company's operating lease payments relate to its corporate headquarters in Seattle, Washington, which includes approximately 515,000 square feet of office space. The lease commenced in April 2019 and expires in 2033 with an option for renewal. The Company also leases additional office and lab space for product development and sales and support personnel in the United States and internationally. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of the Company's operating lease expenses for the years ended September 30, 2022, 2021, and 2020 were as follows (in thousands):


	Fiscal year ended September 30,
	2022		2021		2020
Operating lease expense	$	47,302	$	47,993	$	49,925
Short-term lease expense	2,465		2,953		3,563
Variable lease expense	23,209		25,200		21,980
Total lease expense	$	72,976	$	76,146	$	75,468

Variable lease expense primarily consists of common area maintenance and parking expenses.

Supplemental balance sheet information related to the Company's operating leases was as follows (in thousands, except lease term and discount rate):


	September 30,
	2022			2021
Operating lease right-of-use assets, net	$	227,475		$	244,934

Operating lease liabilities, current1	42,523			49,286
Operating lease liabilities, long-term	272,376			296,945
Total operating lease liabilities	$	314,899		$	346,231

Weighted average remaining lease term (in years)	9.2			9.7
Weighted average discount rate	2.66		%	2.60		%

(1)Current portion of operating lease liabilities is included in accrued liabilities on the Company's consolidated balance sheets.

As of September 30, 2022, the future operating leases payments for each of the next five years and thereafter is as follows (in thousands):


Fiscal Years Ending September 30:	Operating Lease Payments
2023	$	50,427
2024	46,288
2025	38,793
2026	29,241
2027	28,592
Thereafter	166,585
Total lease payments	359,926
Less: imputed interest	(45,027)
Total lease liabilities	$	314,899

Operating lease liabilities above do not include sublease income. As of September 30, 2022, the Company expects to receive sublease income of approximately $21.6 million, which consists of $7.5 million to be received in fiscal year 2023 and $14.1 million to be received over the three fiscal years thereafter.

There were no impairments against right-of-use assets for the year ended September 30, 2022. During the year ended September 30, 2021, the Company recorded an impairment of $23.5 million against the operating lease right-of-use asset related to the exit of six floors in its corporate headquarters. The Company also recorded an impairment of $6.7 million against the right-of-use asset related to the integration of the former Shape headquarters in Santa Clara, California. During the year ended September 30, 2020, the Company recorded an impairment for $9.7 million against the right-of-use asset related to the former Seattle headquarters location, due to the low likelihood of future sublease receipts, as the Company will no longer seek to sublease the space.

As of September 30, 2022, the Company had no significant operating leases that were executed but not yet commenced.