Total future lease payments receivable

[Table of Contents](#i988317c7021a4a8fa66f2208a2958f7e_10)  
Supplemental cash flow information related to leases as of July 31, 2022 were as follows (In thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Year Ended July 31, |
| (In thousands) |  | 2022 |  | 2021 |  |  |
| Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |
|  | Operating cash flows related to operating leases |  | $ | 26,620  |  |  | $ | 28,576  |  |  |  |
|  | Operating cash flows related to finance leases |  | 5  |  |  | 65  |  |  |  |
|  | Financing cash flows related to finance leases |  | 530  |  |  | 1,118  |  |  |  |
| Right-of-use assets obtained in exchange for new operating lease liabilities |  | 24,217  |  |  | 41,770  |  |  |  |
| Right-of-use assets obtained in exchange for new finance lease liabilities |  | —  |  |  | —  |  |  |  |

The annual maturities of the Company’s lease liabilities as of July 31, 2022 were as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Fiscal year (In thousands) |  | Finance leases |  | Operating leases |
| 2023 |  | $ | 24  |  |  | $ | 24,650  |  |
| 2024 |  | 13  |  |  | 20,119  |  |
| 2025 |  | —  |  |  | 17,683  |  |
| 2026 |  | —  |  |  | 14,403  |  |
| 2027 |  | —  |  |  | 10,428  |  |
| Thereafter |  | —  |  |  | 48,447  |  |
| Total future lease commitments |  | $ | 37  |  |  | $ | 135,730  |  |
| Less: imputed interest |  | (1) |  |  | (18,289) |  |
| Present value of lease liabilities |  | $ | 36  |  |  | $ | 117,441  |  |

  
Leases - Lessor  
The Company’s lessor arrangements include certain facilities and various land locations, of which each qualifies as an operating lease. Certain leases also contain escalation clauses and renewal option clauses calling for increased rents. Where a lease contains an escalation clause or a concession, such as a rent holiday or tenant improvement allowance, the Company includes these items in the determination of the straight-line rental income. The effects of these escalation clauses or concessions have been reflected in lease payments receivable on a straight-line basis over the expected lease term and any variable lease income subsequent to establishing the receivable will be recognized as earned.   
Future lease payments receivable under operating leases with terms greater than one year as of July 31, 2022 were as follows:

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
| Fiscal year (In thousands) |  | Operating leases |
| 2023 |  | $ | 5,671  |  |
| 2024 |  | 5,533  |  |
| 2025 |  | 5,490  |  |
| 2026 |  | 5,194  |  |
| 2027 |  | 5,209  |  |
| Thereafter |  | 9,365  |  |
| Total future lease payments receivable |  | $ | 36,462  |  |

  
The cost of the leased space was $51.2 million and $55.5 million as of July 31, 2022 and 2021, respectively. The accumulated depreciation associated with the leased assets was $2.8 million and $1.9 million as of July 31, 2022 and 2021, respectively. Both the leased assets and accumulated depreciation are included in Property and equipment, net on the consolidated balance sheet. Rental income from these operating leases was $14.8 million and $14.8 million for the years ended July 31, 2022 and 2021, respectively, and is included within Service revenues on the consolidated statements of income.  
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