Leases

3 Months Ended

Dec. 31, 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 three months ended December 31, 2024 and 2023 were as follows (in thousands):


	Three months ended December 31,
	2024		2023
Operating lease expense	$	10,007	$	10,326
Short-term lease expense	819		695
Variable lease expense	5,592		6,034
Total lease expense	$	16,418	$	17,055

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, 2024			September 30, 2024
Operating lease right-of-use assets, net	$	198,206		$	178,180

Operating lease liabilities, current1	31,452			33,779
Operating lease liabilities, long-term	242,872			215,785
Total operating lease liabilities	$	274,324		$	249,564

Weighted average remaining lease term (in years)	8.2			7.9
Weighted average discount rate	3.14		%	2.94		%

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

As of December 31, 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 (remainder)	$	29,620
2026	39,568
2027	38,716
2028	34,449
2029	31,820
2030	31,421
Thereafter	109,346
Total lease payments	314,940
Less: imputed interest	(40,616)
Total lease liabilities	$	274,324

Operating lease liabilities above do not include sublease income. As of December 31, 2024, the Company expects to receive sublease income of approximately $4.8 million, which consists of $3.1 million to be received for the remainder of fiscal 2025 and $1.7 million to be received in fiscal year 2026.

As of December 31, 2024, the Company had no significant operating leases that were executed but not yet commenced.