Leases (Notes)

3 Months Ended

Dec. 31, 2020

Leases of Lessee Disclosure [Text Block]

Operating Leases

We have various operating leases for office space, data centers, office equipment and automobiles around the world with lease terms expiring between 2021 and 2030.

We determine if an arrangement is a lease at inception. The current portion of our operating lease liabilities is included in accrued expenses and other current liabilities and the long-term portion is included in operating lease liabilities.

Operating lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate. Due to the interest rate implicit in most of our leases not being readily determinable, our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Operating lease assets also include any prepaid lease payments and lease incentives. Our lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term.

Our lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. We combine fixed payments for non-lease components with our lease payments and account for them together as a single lease component which increases the amount of our lease assets and liabilities. Payments under our lease arrangements are primarily fixed. Variable rents, if any, are expensed as incurred.

As of December 31, 2020, our operating leases had a weighted average remaining lease term of 4.8 years and a weighted average discount rate of 3.8%.

Future lease payments under operating leases as of December 31, 2020 were as follows (dollars in thousands):


Fiscal Year	Operating Leases		Operating leases under restructuring		Total
2021	$	18,945	$	3,171	$	22,116
2022	21,671		3,828		25,499
2023	16,494		3,440		19,934
2024	14,110		1,996		16,106
2025	12,360		1,346		13,706
Thereafter	41,524		1,843		43,367
Total	$	125,104	$	15,624	$	140,728

As of December 31, 2020, we have subleased certain office space that is included in the above table to third parties. As of December 31, 2020, the aggregate sublease income to be recognized during the remaining lease terms is $11.1 million, with approximately an average of $1.8 million annually for each of the next five fiscal years and approximately $2.1 million thereafter.

Our operating lease cost was approximately $7.2 million for the three months ended December 31, 2020 and $7.8 million for the three months ended December 31, 2019. Operating lease payments included within operating cash flows were $7.7 million for the three months ended December 31, 2020 and $7.6 million for the three months ended December 31, 2019.