Leases

9 Months Ended

Apr. 30, 2020

The Company's lease obligations consist of operating leases for office facilities and equipment, with lease periods expiring between fiscal years 2020 and 2032. Some leases include one or more options to renew. Lease renewals are not assumed in the determination of the lease term until the exercise of the renewal option is deemed to be reasonably certain.

Components of operating lease costs were as follows (in thousands):


	Three Months Ended April 30, 2020		Nine Months Ended April 30, 2020
Operating lease cost⁽¹⁾	$	3,802	$	11,544
Variable lease cost	1,396		4,031
Sublease income	(382)		(1,144)
Net operating lease cost	$	4,816	$	14,431

⁽¹⁾Lease expense for leases with an initial term of 12 months or less is excluded from the table above and was $0.3 million and $1.0 million for the three and nine months ended April 30, 2020, respectively.

Lease expense for all worldwide facilities and equipment based on the previous lease accounting standards, which was recognized on a straight-line basis over the terms of the various leases, was $4.8 million and $10.8 million for the three and nine months ended April 30, 2019, respectively.

Future operating lease payments as of April 30, 2020 and July 31, 2019 were as follows (in thousands):


	April 30, 2020		July 31, 2019
2020 (remaining of fiscal year)	$	4,072	$	10,707
2021	16,346		15,571
2022	15,038		14,450
2023	13,515		13,344
2024	13,138		13,174
Thereafter	73,444		78,508
Total future lease payments	135,553		145,754
Less imputed interest	(26,521)
Total lease liability balance	$	109,032

In early March 2020, the Company entered into additional operating leases for facilities in Dublin, Ireland and Mississauga, Canada with lease obligations of approximately $36.8 million payable over a period of 12 years. These operating leases will commence upon taking control of the facilities, which is anticipated to be between May 2020 and July 2021.

Supplemental information related to leases was as follows (in thousands, except for lease term and discount rate):


	April 30, 2020
Operating lease assets	$	85,902

Current portion of lease liabilities	$	9,922
Non-current portion of lease liabilities	99,110
Total lease liabilities	$	109,032

Weighted average remaining lease term (years)	9.07
Weighted average discount rate	4.36		%

Supplemental cash and non-cash information related to operating leases was as follows (in thousands):


	Three Months Ended April 30, 2020		Nine Months Ended April 30, 2020
Cash payments for operating leases	$	4,361	$	8,945
Operating lease assets obtained in exchange for lease liabilities	$	114	$	600