Leases

12 Months Ended

Sep. 30, 2024

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, 2024, 2023, and 2022 were as follows (in thousands):


	Fiscal year ended September 30,
	2024		2023		2022
Operating lease expense	$	40,655	$	47,036	$	47,302
Short-term lease expense	2,791		2,986		2,465
Variable lease expense	23,268		23,139		23,209
Total lease expense	$	66,714	$	73,161	$	72,976

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):


	September 30,
	2024			2023
Operating lease right-of-use assets, net	$	178,180		$	195,471

Operating lease liabilities, current1	33,779			41,421
Operating lease liabilities, long-term	215,785			239,565
Total operating lease liabilities	$	249,564		$	280,986

Weighted average remaining lease term (in years)	7.9			8.6
Weighted average discount rate	2.94		%	2.77		%

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

As of September 30, 2024, 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
2025	$	40,695
2026	37,677
2027	34,217
2028	29,621
2029	26,748
Thereafter	112,351
Total lease payments	281,309
Less: imputed interest	(31,745)
Total lease liabilities	$	249,564

Operating lease liabilities above do not include sublease income. As of September 30, 2024, the Company expects to receive sublease income of approximately $6.1 million, which consists of $4.4 million to be received in fiscal year 2025 and $1.7 million to be received in fiscal year 2026.

During the year ended September 30, 2023, the Company recorded an impairment of $3.5 million against the operating lease right-of-use asset related to its third quarter of fiscal 2023 restructuring plan, see Note 13, Restructuring Charges. There were no impairments against right-of-use assets for the years ended September 30, 2024 and 2022.

As of September 30, 2024, the Company had no significant operating leases that were executed but not yet commenced.