Leases

9 Months Ended

Jun. 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 three and nine months ended June 30, 2022 and 2021 were as follows (in thousands):


	Three months ended June 30,				Nine months ended June 30,
	2022		2021		2022		2021
Operating lease expense	$	11,810	$	11,899	$	35,594	$	36,238
Short-term lease expense	683		741		1,858		2,302
Variable lease expense	5,208		6,478		17,486		18,814
Total lease expense	$	17,701	$	19,118	$	54,938	$	57,354

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):


	June 30, 2022			September 30, 2021
Operating lease right-of-use assets, net	$	217,313		$	244,934

Operating lease liabilities, current1	43,529			49,286
Operating lease liabilities, long-term	265,043			296,945
Total operating lease liabilities	$	308,572		$	346,231

Weighted average remaining lease term (in years)	9.5			9.7
Weighted average discount rate	2.67		%	2.60		%

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

As of June 30, 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)	$	13,897
2023	48,325
2024	41,311
2025	33,618
2026	26,462
2027	26,127
Thereafter	164,860
Total lease payments	354,600
Less: imputed interest	(46,028)
Total lease liabilities	$	308,572

Operating lease liabilities above do not include sublease income. As of June 30, 2022, the Company expects to receive sublease income of approximately $14.3 million, which consists of $1.9 million to be received for the remainder of fiscal 2022 and $12.4 million to be received over the three fiscal years thereafter. There were no impairments against right-of-use assets for the three and nine months ended June 30, 2022 and the three months ended June 30, 2021. 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.

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