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Leases
 12 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Operating leases Leases
We lease office space and data centers under operating lease arrangements, which constitute the majority of our lease obligations. We also enter into finance lease agreements from time to time for certain computer equipment. For any lease with a lease term in excess of 12 months, the related lease assets and liabilities are recognized on our consolidated balance sheets as operating leases or finance leases at the commencement of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and we have elected to combine these components together and account for them as a single lease component for all classes of assets. Leases with a lease term of 12 months or less are not recorded on our consolidated balance sheets. Furthermore, we recognize lease expense for these leases on a straight-line basis over the lease term.
Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We use a collateralized incremental borrowing rate based on the information available at the commencement date, including the lease term, in determining the present value of future payments. In calculating the incremental borrowing rates, we consider recent ratings from credit agencies and current lease demographic information. Our operating leases also typically require payment of real estate taxes, common area maintenance, insurance and other operating costs as well as payments that are adjusted based on a consumer price index. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components. Operating lease assets also include prepaid lease payments and initial direct costs, and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The following table presents the lease balances within the accompanying consolidated balance sheets as of September 30, 2024 and 2023:
Balance Sheet LocationSeptember 30,
20242023
(In thousands)
Assets
   Operating leasesOperating lease right-of-use assets$29,580 $25,703 
   Finance leases (*)Property and equipment, net9,881 — 
       Total lease assets$39,461 $25,703 
Liabilities
Current:
   Operating leasesOther accrued liabilities$11,555 $16,336 
   Finance leasesOther accrued liabilities3,144 — 
Non-current:
   Operating leasesOperating lease liabilities21,963 23,903 
   Finance leasesOther liabilities7,263 — 
       Total lease liabilities$43,925 $40,239 
(*) Finance leases were recorded net of accumulated depreciation of $1.9 million at September 30, 2024.
The components of our operating and finance lease expenses were as follows:
Year Ended September 30,
202420232022
(In thousands)
Operating lease cost$14,421 $16,594 $18,426 
Finance lease cost:
   Depreciation of lease assets1,859 — — 
   Interest on lease liabilities369 — — 
Short-term lease cost811 461 201 
Variable lease cost2,060 2,363 2,091 
Sublease income (1,073)(429)— 
     Total lease cost$18,447 $18,989 $20,718 
The following table presents weighted-average remaining lease terms and weighted-average discount rates related to our operating and finance leases:
September 30,
20242023
Operating leases:
     Weighted-average remaining lease term (in months)4435
     Weighted-average discount rate6.41 %4.58 %
Finance leases:
     Weighted-average remaining lease term (in months)400
     Weighted-average discount rate5.52 %— %
Supplemental cash flow information related to our non-cancellable leases was as follows:
Year Ended September 30,
202420232022
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow for operating leases$18,153 $19,780 $22,021 
Operating cash outflow for finance leases369 — — 
Financing cash outflow for finance leases1,333 — — 
Lease assets obtained in exchange for new lease liabilities:
Operating leases22,433 4,150 7,505 
Finance leases11,740 — — 
Future lease payments under our non-cancellable leases as of September 30, 2024 were as follows:
Operating LeasesFinance Leases
(In thousands)
Fiscal 2025$13,378 $3,625 
Fiscal 20269,805 3,625 
Fiscal 20275,618 3,625 
Fiscal 20284,439 441 
Fiscal 20292,626 — 
Thereafter2,039 — 
      Total future undiscounted lease payments37,905 11,316 
         Less imputed interest(4,387)(909)
      Total reported lease liabilities$33,518 $10,407 
Finance leases Leases
We lease office space and data centers under operating lease arrangements, which constitute the majority of our lease obligations. We also enter into finance lease agreements from time to time for certain computer equipment. For any lease with a lease term in excess of 12 months, the related lease assets and liabilities are recognized on our consolidated balance sheets as operating leases or finance leases at the commencement of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and we have elected to combine these components together and account for them as a single lease component for all classes of assets. Leases with a lease term of 12 months or less are not recorded on our consolidated balance sheets. Furthermore, we recognize lease expense for these leases on a straight-line basis over the lease term.
Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We use a collateralized incremental borrowing rate based on the information available at the commencement date, including the lease term, in determining the present value of future payments. In calculating the incremental borrowing rates, we consider recent ratings from credit agencies and current lease demographic information. Our operating leases also typically require payment of real estate taxes, common area maintenance, insurance and other operating costs as well as payments that are adjusted based on a consumer price index. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components. Operating lease assets also include prepaid lease payments and initial direct costs, and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The following table presents the lease balances within the accompanying consolidated balance sheets as of September 30, 2024 and 2023:
Balance Sheet LocationSeptember 30,
20242023
(In thousands)
Assets
   Operating leasesOperating lease right-of-use assets$29,580 $25,703 
   Finance leases (*)Property and equipment, net9,881 — 
       Total lease assets$39,461 $25,703 
Liabilities
Current:
   Operating leasesOther accrued liabilities$11,555 $16,336 
   Finance leasesOther accrued liabilities3,144 — 
Non-current:
   Operating leasesOperating lease liabilities21,963 23,903 
   Finance leasesOther liabilities7,263 — 
       Total lease liabilities$43,925 $40,239 
(*) Finance leases were recorded net of accumulated depreciation of $1.9 million at September 30, 2024.
The components of our operating and finance lease expenses were as follows:
Year Ended September 30,
202420232022
(In thousands)
Operating lease cost$14,421 $16,594 $18,426 
Finance lease cost:
   Depreciation of lease assets1,859 — — 
   Interest on lease liabilities369 — — 
Short-term lease cost811 461 201 
Variable lease cost2,060 2,363 2,091 
Sublease income (1,073)(429)— 
     Total lease cost$18,447 $18,989 $20,718 
The following table presents weighted-average remaining lease terms and weighted-average discount rates related to our operating and finance leases:
September 30,
20242023
Operating leases:
     Weighted-average remaining lease term (in months)4435
     Weighted-average discount rate6.41 %4.58 %
Finance leases:
     Weighted-average remaining lease term (in months)400
     Weighted-average discount rate5.52 %— %
Supplemental cash flow information related to our non-cancellable leases was as follows:
Year Ended September 30,
202420232022
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow for operating leases$18,153 $19,780 $22,021 
Operating cash outflow for finance leases369 — — 
Financing cash outflow for finance leases1,333 — — 
Lease assets obtained in exchange for new lease liabilities:
Operating leases22,433 4,150 7,505 
Finance leases11,740 — — 
Future lease payments under our non-cancellable leases as of September 30, 2024 were as follows:
Operating LeasesFinance Leases
(In thousands)
Fiscal 2025$13,378 $3,625 
Fiscal 20269,805 3,625 
Fiscal 20275,618 3,625 
Fiscal 20284,439 441 
Fiscal 20292,626 — 
Thereafter2,039 — 
      Total future undiscounted lease payments37,905 11,316 
         Less imputed interest(4,387)(909)
      Total reported lease liabilities$33,518 $10,407