Leases

9 Months Ended

Jun. 30, 2023

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, 2023 and 2022 were as follows (in thousands):


	Three months ended June 30,				Nine months ended June 30,
	2023		2022		2023		2022
Operating lease expense	$	11,801	$	11,810	$	36,498	$	35,594
Short-term lease expense	872		683		2,271		1,858
Variable lease expense	5,895		5,208		16,881		17,486
Total lease expense	$	18,568	$	17,701	$	55,650	$	54,938

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, 2023			September 30, 2022
Operating lease right-of-use assets, net	$	204,196		$	227,475

Operating lease liabilities, current1	42,155			42,523
Operating lease liabilities, long-term	250,077			272,376
Total operating lease liabilities	$	292,232		$	314,899

Weighted average remaining lease term (in years)	8.7			9.2
Weighted average discount rate	2.75		%	2.66		%

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

As of June 30, 2023, 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
2023 (remainder)	$	12,364
2024	49,024
2025	41,307
2026	31,727
2027	30,530
2028	28,396
Thereafter	138,797
Total lease payments	332,145
Less: imputed interest	(39,913)
Total lease liabilities	$	292,232

Operating lease liabilities above do not include sublease income. As of June 30, 2023, the Company expects to receive sublease income of approximately $16.2 million, which consists of $1.8 million to be received for the remainder of fiscal 2023 and $14.4 million to be received over the three fiscal years thereafter.

As of June 30, 2023, the Company had no significant operating leases that were executed but not yet commenced.