Leases

3 Months Ended

Jan. 31, 2023

We have operating lease arrangements for office space, data center, equipment and other corporate assets. These leases have various expiration dates through December 31, 2042, some of which include options to extend the leases for up to 10 years. Because we are 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 our lease expense during the period presented were as follows:


	Three Months Ended January 31,
	2023		2022
	(in thousands)
Operating lease expense (1)	$	24,348	$	22,032

Variable lease expense (2)	4,325		2,124
Total lease expense	$	28,673	$	24,156

(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 was as follows:


	Three Months Ended January 31,
			2023		2022
		(in thousands)
Cash paid for amounts included in the measurement of operating lease liabilities			$	21,053	$	20,620
ROU assets obtained in exchange for operating lease liabilities			$	44,339	$	9,354

Lease term and discount rate information related to our operating leases as of the end of the period presented were as follows:


	As of
	January 31, 2023		October 31, 2022
Weighted-average remaining lease term (in years)	8.73		9.16
Weighted-average discount rate	2.27	%	2.19	%

The following table represented the maturities of our future lease payments due under operating leases as of January 31, 2023:


	Lease Payments
Fiscal year	(in thousands)
Remainder of fiscal 2023	$	51,483
2024	104,982
2025	93,685
2026	83,259
2027	81,967
2028 and thereafter	333,494
Total future minimum lease payments	748,870
Less: Imputed interest	79,006
Total lease liabilities	$	669,864

In addition, certain facilities owned by us 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 leased by us, due to us as of January 31, 2023 were as follows:


	Lease Receipts
Fiscal year	(in thousands)
Remainder of fiscal 2023	$	11,923
2024	24,591
2025	24,479
2026	25,333
2027	26,452
2028 and thereafter	83,737
Total	$	196,515