Leases

12 Months Ended

Sep. 30, 2024

17. Leases

Our headquarters are located at 121 Seaport Boulevard, Boston, Massachusetts. The lease is for approximately 250,000 square feet and runs through June 30, 2037. We subleased a portion of the leased space through January 31, 2024. Base rent for the first year of the lease was $11.0 million and increases by $1 per square foot per year thereafter ($0.3 million per year). Base rent first became payable on July 1, 2020. In addition to the base rent, we are required to pay our pro rata portions of building operating costs and real estate taxes (together, “Additional Rent”). Annual Additional Rent is estimated to be approximately $8.0 million.

The components of lease cost reflected in the Consolidated Statements of Operations for the years ended September 30, 2024, 2023, and 2022 were as follows:


(in thousands)	Year ended September 30,
	2024			2023			2022
Operating lease cost	$	33,288		$	32,402		$	34,346
Short-term lease cost		3,691			5,411			2,653
Variable lease cost		9,919			10,945			10,095
Sublease income		(1,436	)		(4,749	)		(4,600	)
Total lease cost	$	45,462		$	44,009		$	42,494

Supplemental cash flow information for the years ended September 30, 2024, 2023, and 2022 was as follows:


	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	35,498	$	36,038	$	38,709
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases(1)	$	11,079	$	28,257	$	15,431

(1)

In the year ended September 30, 2023, operating lease additions included $4.0 million related to the ServiceMax acquisition.

Supplemental balance sheet information related to the leases as of September 30, 2024 and 2023 was as follows:


	2024			2023
Weighted-average remaining lease term - operating leases	10.3 years			10.9 years
Weighted-average discount rate - operating leases		5.4	%		5.2	%

Maturities of lease liabilities as of September 30, 2024 are as follows:


(in thousands)	Operating Leases
2025	$	32,256
2026		26,850
2027		21,917
2028		19,475
2029		17,518
Thereafter		120,895
Total future lease payments		238,911
Less: imputed interest		(57,157	)
Total lease liability	$	181,754