Leases

3 Months Ended

Dec. 31, 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 months ended December 31, 2023 and 2022 were as follows (in thousands):


	Three months ended December 31,
	2023		2022
Operating lease expense	$	10,326	$	12,516
Short-term lease expense	695		655
Variable lease expense	6,034		5,336
Total lease expense	$	17,055	$	18,507

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, 2023			September 30, 2023
Operating lease right-of-use assets, net	$	192,174		$	195,471

Operating lease liabilities, current1	41,308			41,421
Operating lease liabilities, long-term	235,001			239,565
Total operating lease liabilities	$	276,309		$	280,986

Weighted average remaining lease term (in years)	8.4			8.6
Weighted average discount rate	2.83		%	2.77		%

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

As of December 31, 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
2024 (remainder)	$	37,126
2025	42,542
2026	33,010
2027	31,740
2028	29,553
2029	26,721
Thereafter	112,351
Total lease payments	313,043
Less: imputed interest	(36,734)
Total lease liabilities	$	276,309

Operating lease liabilities above do not include sublease income. As of December 31, 2023, the Company expects to receive sublease income of approximately $12.8 million, which consists of $5.4 million to be received for the remainder of fiscal 2024 and $7.4 million to be received over the two fiscal years thereafter.

As of December 31, 2023, the Company had no significant operating leases that were executed but not yet commenced.