Leases

12 Months Ended

Jul. 31, 2020

The Company's lease obligations consist of operating leases for office facilities and equipment, with lease periods expiring between fiscal years 2021 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):


	Fiscal year ended July 31, 2020
Operating lease cost ⁽¹⁾	$	15,275
Variable lease cost	5,821
Sublease income	(1,430)
Net operating lease cost	$	19,666

⁽¹⁾ Lease expense for leases with an initial term of 12 months or less is excluded from the table above and was $0.9 million for the fiscal year ended July 31, 2020.

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 $15.5 million and $8.7 million for the fiscal years ended July 31, 2019 and 2018, respectively.

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


Fiscal year ending July 31,
2021	$	15,660
2022	$	17,784
2023	$	16,211
2024	$	15,793
2025	$	16,152
Thereafter	$	78,886
Total future lease payments	$	160,486
Less imputed interest	$	(30,142)
Total lease liability balance	$	130,344

In early March 2020, the Company entered into an operating lease for office space in Mississauga, Canada with lease obligations of approximately $10.8 million payable over a period of 10 years. This operating lease will commence upon taking control of the facility, which is anticipated to be in the first quarter of fiscal year 2021.

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


	July 31, 2020
Operating lease assets	$	103,797

Current portion of lease liabilities	$	10,936
Non-current portion of lease liabilities	119,408
Total lease liabilities	$	130,344

Weighted average remaining lease term (years)	9.27
Weighted average discount rate	4.34		%

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


	Fiscal Year ended July 31, 2020
Cash payments for operating leases	$	9,584
Operating lease assets obtained in exchange for lease liabilities	$	23,032