Leases

3 Months Ended

Dec. 31, 2021

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 three months ended December 31, 2021 and 2020 were as follows (in thousands):


	Three months ended December 31,
	2021		2020
Operating lease expense	$	11,914	$	12,181
Short-term lease expense	556		986
Variable lease expense	6,244		7,026
Total lease expense	$	18,714	$	20,193

Variable lease expense primarily consists of common area maintenance, real estate taxes 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):


	December 31, 2021			September 30, 2021
Operating lease right-of-use assets, net	$	237,341		$	244,934

Operating lease liabilities, current1	46,889			49,286
Operating lease liabilities, long-term	287,596			296,945
Total operating lease liabilities	$	334,485		$	346,231

Weighted average remaining lease term (in years)	9.6			9.7
Weighted average discount rate	2.60		%	2.60		%

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

As of December 31, 2021, the future operating lease payments for each of the next five years and thereafter is as follows (in thousands):


Fiscal Years Ending September 30:	Operating Lease Payments
2022 (remainder)	$	41,840
2023	50,162
2024	41,519
2025	33,599
2026	26,583
2027	26,224
Thereafter	164,890
Total lease payments	384,817
Less: imputed interest	(50,332)
Total lease liabilities	$	334,485

Operating lease liabilities above do not include sublease income. As of December 31, 2021, the Company expects to receive sublease income of approximately $17.5 million, which consists of $5.1 million to be received for the remainder of fiscal 2022 and $12.4 million to be received over the three fiscal years thereafter. In the first quarter of fiscal 2021, the Company 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. There were no impairments against right-of-use assets for the three months ended December 31, 2021.

As of December 31, 2021, the Company had no significant operating leases that were executed but not yet commenced.