Leases (Tables)

9 Months Ended

May 31, 2026

Schedule of Components of Operating Lease Costs

The components of our operating lease costs were as follows during the respective periods:


	Three Months Ended May 31,						Nine Months Ended May 31,
($ in thousands)	2026			2025			2026			2025
Operating lease cost	$	3,198		$	3,423		$	9,729		$	10,307
Variable lease cost		769			671			2,332			2,090
Less: Sublease income(1)		(1,585	)		(2,026	)		(5,234	)		(4,960	)
Total lease cost, net	$	2,382		$	2,068		$	6,827		$	7,437

(1)

We expect to recognize $31.6 million in sublease income for periods subsequent to May 31, 2026, through March 2031, the sublease termination date. Sublease income represents all of our consolidated lease income and is recorded as an offset to lease expense in strategic alternatives, restructuring and other on our condensed consolidated statements of income.

Schedule of Future Payments Related to Operating Lease Liabilities

Future payments related to our operating lease liabilities were as follows for periods subsequent to May 31, 2026:


($ in thousands)
Remainder of 2026	$	2,688
2027		16,265
2028		16,590
2029		16,922
2030		17,260
2031		10,185
Total operating lease payments		79,910
Less: liability accretion		(14,209	)
Present value of operating lease liabilities		65,701
Less: current operating lease liabilities		(9,822	)
Long-term operating lease liabilities	$	55,879

Schedule of Supplemental Information Related to Non Cash Operating Lease Activity

The following provides supplemental information related to leases during the respective periods:


	Nine Months Ended May 31,
	2026		2025
Cash paid for amounts included in the measurement of operating lease liabilities(1)	$	11.9 million	$	13.4 million
Operating lease ROU assets obtained in exchange for lease liabilities		None		None

(1)

Cash paid for amounts included in the measurement of operating lease liabilities for the nine months ended May 31, 2025 includes rent paid on campus leases that expired during the prior fiscal year.