Leases

6 Months Ended

Mar. 31, 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 three and six months ended March 31, 2022 and 2021 were as follows (in thousands):


	Three months ended March 31,				Six months ended March 31,
	2022		2021		2022		2021
Operating lease expense	$	11,870	$	12,158	$	23,784	$	24,339
Short-term lease expense	619		575		1,175		1,561
Variable lease expense	6,034		5,310		12,278		12,336
Total lease expense	$	18,523	$	18,043	$	37,237	$	38,236

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):


	March 31, 2022			September 30, 2021
Operating lease right-of-use assets, net	$	227,576		$	244,934

Operating lease liabilities, current1	45,990			49,286
Operating lease liabilities, long-term	276,416			296,945
Total operating lease liabilities	$	322,406		$	346,231

Weighted average remaining lease term (in years)	9.6			9.7
Weighted average discount rate	2.64		%	2.60		%

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

As of March 31, 2022, 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)	$	27,868
2023	50,028
2024	41,469
2025	33,568
2026	26,550
2027	26,194
Thereafter	164,883
Total lease payments	370,560
Less: imputed interest	(48,154)
Total lease liabilities	$	322,406

Operating lease liabilities above do not include sublease income. As of March 31, 2022, the Company expects to receive sublease income of approximately $16.0 million, which consists of $3.6 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 second quarter of fiscal 2021, the Company recorded an impairment of $23.5 million against the operating lease right-of-use asset related to the permanent exit of six floors in its corporate headquarters. 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 and six months ended March 31, 2022.

As of March 31, 2022, the Company had no significant operating leases that were executed but not yet commenced.