Leases

12 Months Ended

Oct. 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 are as follows:


	Year Ended October 31,
	2023		2022
	(in thousands)
Operating lease expense (1)	$	96,083	$	91,972

Variable lease expense (2)	20,789		11,649
Total lease expense	$	116,872	$	103,621

(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,
	2023		2022
	(in thousands)
Cash paid for amounts included in the measurement of operating lease liabilities	$	88,983	$	83,858
ROU assets obtained in exchange for operating lease liabilities	$	101,390	$	168,095

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


	As of October 31,
	2023		2022
Weighted-average remaining lease term (in years)	8.34		9.16
Weighted-average discount rate	2.50	%	2.19	%

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


	Lease Payments
Fiscal year	(in thousands)
2024	$	102,297
2025	102,849
2026	92,687
2027	91,038
2028	77,010
2029 and thereafter	282,186
Total future minimum lease payments	748,067
Less: Imputed interest	78,342
Total lease liabilities	$	669,725

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 October 31, 2023, are as follows:


	Lease Receipts
	(in thousands)
Fiscal year
2024	$	24,698
2025	25,351
2026	26,230
2027	27,376
2028	27,557
2029 and thereafter	56,491
Total	$	187,703