Leases
Lessee Arrangements
Operating Leases
We primarily lease real estate which is utilized for our office locations. As of March 31, 2026, the remaining term of our operating leases ranged from 1 to 13 years with various automatic extensions.
The following table outlines the maturity of our existing operating lease liabilities on a fiscal year-end basis as of March 31, 2026.
Maturity of Operating Leases
| | | | | | | | |
| | Operating Leases |
| 2027 | | $ | 63,752 | |
| 2028 | | 65,620 | |
| 2029 | | 64,602 | |
| 2030 | | 63,133 | |
| 2031 | | 61,110 | |
| Thereafter | | 326,571 | |
| Total | | 644,788 | |
| Less: present value discount | | (152,680) | |
| Operating lease liabilities | | $ | 492,108 | |
Lease costs
| | | | | | | | | | | | | | | | |
| | | | March 31, 2026 | | March 31, 2025 |
| Operating lease expense | | | | $ | 63,427 | | | $ | 61,106 | |
Variable lease expense (1) | | | | 20,053 | | | 19,419 | |
| Short-term lease expense | | | | 268 | | | 231 | |
| Less: Sublease income | | | | (3,938) | | | (2,874) | |
| Total lease costs | | | | $ | 79,810 | | | $ | 77,882 | |
(1)Primarily consists of payments for property taxes, common area maintenance and usage-based operating costs.
Weighted-average details
| | | | | | | | | | | | | | |
| | March 31, 2026 | | March 31, 2025 |
| Weighted-average remaining lease term (years) | | 10 | | 11 |
| Weighted-average discount rate | | 5.5 | % | | 5.4 | % |
Supplemental cash flow information related to leases:
| | | | | | | | | | | | | | |
| | March 31, 2026 | | March 31, 2025 |
| Operating cash flows: | | | | |
| Cash paid for amounts included in the measurement of Operating lease liabilities | | $ | 56,931 | | | $ | 56,312 | |
| | | | |
| Non-cash activity: | | | | |
| Operating lease right-of-use assets obtained in exchange of Operating lease liabilities | | $ | 90,891 | | | $ | 55,433 | |
| Change in Operating lease right-of-use assets due to remeasurement | | (12,912) | | | (9,215) | |
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.