Leases

12 Months Ended

Oct. 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:


	Year Ended October 31,
	2021		2020
	(in thousands)
Operating lease expense (1)	$	93,848	$	93,636

Variable lease expense (2)	8,231		5,147
Total lease expense	$	102,079	$	98,783

(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:


	Year Ended October 31,
	2021		2020
	(in thousands)
Cash paid for amounts included in the measurement of operating lease liabilities	$	86,360	$	72,828
ROU assets obtained in exchange for operating lease liabilities	$	112,637	$	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, 2021		October 31, 2020
Weighted-average remaining lease term (in years)	8.00		8.62
Weighted-average discount rate	2.01	%	2.56	%

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


	Lease Payments
Fiscal year	(in thousands)
2022	$	89,891
2023	83,062
2024	76,762
2025	65,434
2026	55,647
Thereafter	243,891
Total future minimum lease payments	614,687
Less: Imputed interest	48,006
Total lease liabilities	$	566,681

As of October 31, 2021, the Company has additional operating leases that have not yet commenced with future undiscounted lease payments of $0.8 million. These operating leases may commence in January 2022, 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 from owned facilities, including sublease income from other facilities, due to the Company as of October 31, 2021 are as follows:


	Lease Receipts
	(in thousands)
Fiscal year
2022	$	17,131
2023	16,433
2024	13,949
2025	6,375
2026	6,566
Thereafter	31,466
Total	$	91,920