Leases

9 Months Ended

Jul. 31, 2021

The Company has operating lease arrangements for office space, data center, equipment and other corporate assets. These leases have various expiration dates through December 31, 2040, 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:


	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	(in thousands)
Operating lease expense (1)	$	23,843	$	23,450	$	70,818	$	69,932

Variable lease expense (2)	2,184		1,447		5,361		3,439
Total lease expense	$	26,027	$	24,897	$	76,179	$	73,371

(1) Operating lease expense includes immaterial amounts of short-term leases, net of sublease income.

(2) 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:


	Three Months Ended July 31,				Nine Months Ended July 31,
	2021		2020		2021		2020
	(in thousands)
Cash paid for amounts included in the measurement of operating lease liabilities	$	21,913	$	18,637	$	64,516	$	52,766
ROU assets obtained in exchange for operating lease liabilities	$	10,742	$	27,063	$	92,149	$	56,846

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


	July 31, 2021		October 31, 2020
Weighted-average remaining lease term (in years)	8.11		8.62
Weighted-average discount rate	2.39	%	2.56	%

The following represents the maturities of the Company’s future lease payments due under operating leases as of July 31, 2021:


	Lease Payments
Fiscal year	(in thousands)
Remainder of fiscal 2021	$	20,538
2022	94,494
2023	79,441
2024	73,292
2025	63,800
Thereafter	296,021
Total future minimum lease payments	627,586
Less: Imputed interest	60,723
Total lease liabilities	$	566,863

As of July 31, 2021, the Company has additional operating leases that have not yet commenced with future undiscounted lease payments of $1.9 million. These operating leases may commence in August 2021, with lease terms between 3 years and 5 years.

In addition, certain facilities owned by the Company were leased to third 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. The lease receipts including sublease income for leased and owned facilities due to the Company as of July 31, 2021 are as follows:


	Lease Receipts
Fiscal year	(in thousands)
Remainder of fiscal 2021	$	3,882
2022	15,609
2023	14,912
2024	12,593
2025	6,375
Thereafter	38,032
Total	$	91,403