Leases
We lease the majority of our office facilities as well as certain equipment, all of which are accounted for as operating leases. These leases have remaining terms ranging from less than 1 year to approximately 12 years. Some leases include options to extend the lease for up to 5 years and others include options to terminate.
The following table summarizes the components of lease cost recognized in the consolidated statement of operations for fiscal 2026 and fiscal 2025 (dollars in thousands):
| | | | | | | | | | | |
| Fiscal Year Ended |
| January 31, 2026 | | January 25, 2025 |
| Lease cost under long-term operating leases | $ | 54,035 | | | $ | 46,151 | |
| Lease cost under short-term operating leases | 21,021 | | | 17,119 | |
Variable lease cost under short-term and long-term operating leases(1) | 5,697 | | | 3,725 | |
| Total lease cost | $ | 80,753 | | | $ | 66,995 | |
(1) Variable lease cost primarily includes insurance, maintenance, and other operating expenses related to our leased office facilities.
Our operating lease liabilities related to long-term operating leases were $177.5 million and $112.8 million as of January 31, 2026 and January 25, 2025, respectively. Supplemental balance sheet information related to these liabilities is as follows:
| | | | | | | | | | | |
| January 31, 2026 | | January 25, 2025 |
| Weighted average remaining lease term | 6.0 years | | 4.6 years |
| Weighted average discount rate | 5.8 | % | | 5.8 | % |
Supplemental cash flow information related to our long-term operating lease liabilities as of January 31, 2026 and January 25, 2025 is as follows (dollars in thousands):
| | | | | | | | | | | |
| Fiscal Year Ended |
| January 31, 2026 | | January 25, 2025 |
| Cash paid for amounts included in the measurement of lease liabilities | $ | 46,289 | | | $ | 41,574 | |
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 87,160 | | | $ | 76,833 | |
As of January 31, 2026, maturities of our lease liabilities under our long-term operating leases for the next five fiscal years and thereafter are as follows (dollars in thousands):
| | | | | | | | |
| Fiscal Year | | Amount |
| 2027 | | $ | 50,119 | |
| 2028 | | 38,506 | |
| 2029 | | 30,019 | |
| 2030 | | 21,437 | |
| 3031 | | 16,005 | |
| Thereafter | | 58,314 | |
| Total lease payments | | 214,400 | |
| Less: imputed interest | | (36,891) | |
| Total | | $ | 177,509 | |
As of January 31, 2026, the Company had additional operating leases with total lease costs of $6.2 million that have not yet commenced. These leases will commence in fiscal 2027.
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.