LEASESThe Company has operating leases primarily for land, buildings and equipment and has various finance leases for certain land and buildings principally expiring through 2035.
Certain of the Company’s leases include options to extend or terminate the leases and these options have been included in the relevant lease term to the extent that they are reasonably certain to be exercised.
The Company does not include significant restrictions or covenants in our lease agreements, and residual value guarantees are not generally included within our operating leases.
The components of lease costs for the fiscal years ended July 31, 2025, July 31, 2024 and July 31, 2023 were as follows:
| | | | | | | | | | | | | | | | | |
| Fiscal Years Ended July 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease cost | $ | 35,383 | | | $ | 32,248 | | | $ | 30,200 | |
| Finance lease cost | | | | | |
| Amortization of right-of-use assets | 746 | | | 746 | | | 746 | |
| Interest on lease liabilities | 227 | | | 305 | | | 388 | |
| Total lease cost | $ | 36,356 | | | $ | 33,299 | | | $ | 31,334 | |
Other information related to leases was as follows:
| | | | | | | | | | | | | | | | | |
| Fiscal Years Ended July 31, |
| Supplemental Cash Flow Information | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows from operating leases | $ | 35,359 | | | $ | 32,167 | | | $ | 30,089 | |
| Right-of-use assets obtained in exchange for lease obligations: | | | | | |
| Operating leases | $ | 11,591 | | | $ | 7,960 | | | $ | 15,426 | |
| | | | | |
| | | | | | | | | | | |
| July 31, |
| Supplemental Balance Sheet Information | 2025 | | 2024 |
| Operating leases: | | | |
| Operating lease right-of-use assets | $ | 41,755 | | | $ | 43,139 | |
| | | |
| Operating lease liabilities | | | |
| Other current liabilities | $ | 12,108 | | | $ | 11,405 | |
| Other long-term liabilities | 30,081 | | | 32,007 | |
| Total operating lease liabilities | $ | 42,189 | | | $ | 43,412 | |
| | | |
| Finance leases: | | | |
| Finance lease right-of-use assets | $ | 4,026 | | | $ | 4,772 | |
| | | |
| Finance lease liabilities | | | |
| Other current liabilities | $ | 968 | | | $ | 855 | |
| Other long-term liabilities | 898 | | | 1,866 | |
| Total finance lease liabilities | $ | 1,866 | | | $ | 2,721 | |
| | | | | | | | | | | |
| July 31, |
| 2025 | | 2024 |
| Weighted-average remaining lease term | | | |
| Operating leases | 8.8 years | | 9.1 years |
| Finance leases | 1.8 years | | 2.8 years |
| Weighted-average discount rate | | | |
| Operating leases | 4.8 | % | | 4.8 | % |
| Finance leases | 9.7 | % | | 9.7 | % |
Future minimum rental payments required under operating and finance leases as of July 31, 2025 were as follows:
| | | | | | | | | | | | | | |
| | Operating Leases | | Finance Leases |
| For the fiscal year ending July 31, 2026 | | $ | 17,476 | | | $ | 1,107 | |
| For the fiscal year ending July 31, 2027 | | 12,166 | | | 896 | |
| For the fiscal year ending July 31, 2028 | | 8,015 | | | 59 | |
| For the fiscal year ending July 31, 2029 | | 4,591 | | | — | |
| For the fiscal year ending July 31, 2030 | | 2,311 | | | — | |
| For the fiscal year ending July 31, 2031 and thereafter | | 12,789 | | | — | |
| Total future lease payments | | $ | 57,348 | | | $ | 2,062 | |
| Less: Amount representing interest | | (15,159) | | | (196) | |
| Total reported lease liability | | $ | 42,189 | | | $ | 1,866 | |
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.