Leases
We have entered into various non-cancelable operating leases, primarily for our offices and data centers, with lease terms expiring through the year ending July 31, 2036. Some of our leases contain rent holiday periods, scheduled rent increases, lease incentives, early termination rights, and/or renewal options.
During the years ended July 31, 2025, 2024, and 2023, our net cost for operating leases was $121.7 million, $104.7 million, and $91.3 million, respectively, primarily consisting of operating lease costs of $88.1 million, $75.6 million, and $64.2 million, respectively. Our net cost for operating leases also included variable lease costs, short-term lease costs, and sublease income in the periods presented.
The following tables present additional information for our operating leases (in millions, except for years and percentages):
Year Ended July 31,
202520242023
Operating cash flows used in payments of operating lease liabilities$91.2 $87.4 $82.7 
Right-of-use assets obtained in exchange for new operating lease liabilities$26.5 $177.9 $71.1 
July 31, 2025July 31, 2024
Weighted-average remaining lease term6.0 years6.6 years
Weighted-average discount rate5.4%5.3%
The following table presents maturities of operating lease liabilities as of July 31, 2025 (in millions):
Amount
Fiscal years ending July 31:
2026$99.4 
202795.0 
202894.3 
202947.7 
203045.2 
2031 and thereafter
112.3 
Total operating lease payments493.9 
Less: imputed interest(76.5)
Present value of operating lease liabilities$417.4 
Current portion of operating lease liabilities(1)
$79.2 
Long-term operating lease liabilities$338.2 
(1)Current portion of operating lease liabilities is included in accrued and other liabilities on our consolidated balance sheet.
As of July 31, 2025, we had additional non-cancelable operating leases for office space that had been signed but had not yet commenced with total future minimum lease payments of $36.4 million. These leases are expected to commence on or after fiscal 2026, with lease terms ranging from four to seven years.

Historical Timeline

Fiscal YearFiled
2025Aug 29, 2025Showing above
2024Sep 6, 2024
2023Sep 1, 2023
2022Sep 6, 2022
2021Sep 3, 2021
2020Sep 4, 2020

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.