Leases

12 Months Ended

Oct. 31, 2020

The Company has operating lease arrangements for office space, data center, equipment and other corporate assets. These leases have various expiration dates through March 31, 2032, some of which include options to extend the leases for up to 10 years. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term and associated potential option payments are excluded from lease payments.

The components of the Company’s lease expense during the period presented are as follows:



	Year Ended October 31,
	2020
	(in thousands)
Operating lease expense	$	93,636
Variable lease expense ⁽¹⁾	5,147
Total lease expense	$	98,783

⁽¹⁾ Variable lease expense includes payments to lessors that are not fixed or determinable at lease commencement date. These payments primarily consist of maintenance, property taxes, insurance and variable indexed based payments.

Supplemental cash flow information during the period presented is as follows:



	Year Ended October 31,
	2020
	(in thousands)
Cash paid for amounts included in the measurement of operating lease liabilities	$	72,828
ROU assets obtained in exchange for operating lease liabilities	$	69,439

Lease term and discount rate information related to the Company’s operating leases as of the end of the period presented are as follows:



	October 31, 2020
Weighted-average remaining lease term (in years)	8.62
Weighted-average discount rate	2.56	%

The following represents the maturities of the Company’s future lease payments due under operating leases as of October 31, 2020:



	Lease Payments
Fiscal year	(in thousands)
2021	$	84,534
2022	79,886
2023	64,073
2024	59,751
2025	53,280
Thereafter	259,969
Total future minimum lease payments	601,493
Less: Imputed interest	65,909
Total lease liabilities	$	535,584

As of October 31, 2020, the Company has additional operating leases for facilities that have not yet commenced with future undiscounted lease payments of $58.6 million. These operating leases will commence before March 1, 2021, with lease terms between 3 years and 9 years.

As of October 31, 2019, the future minimum lease payments due under non-cancellable operating leases were as follows:



	Minimum Lease Payments⁽¹⁾
	(in thousands)
Fiscal year
2020	$	79,286
2021	79,703
2022	69,477
2023	53,909
2024	48,730
Thereafter	291,494
Total	$	622,599

⁽¹⁾ Amounts based on Topic 840, Leases.

In addition, certain facilities owned by the Company were leased to 3rd parties under non-cancellable operating lease agreements. These leases have annual escalating payments and have expiration dates through March 31, 2031 in accordance with the terms and conditions of the existing agreement. Lease payments due to the Company, over the remaining life of the leases, are approximately $69.6 million as of October 31, 2020.