The Company’s lease portfolio consists primarily of operating leases for office space and has remaining terms from less than one year up to twelve years, with contractual terms expiring from 2026 to 2038. Lease contracts may include one or more renewal options that allow the Company to extend the lease term, typically from one year to five years per renewal option. The exercise of lease options is generally at the discretion of the Company. None of the Company’s leases contain residual value guarantees, substantial restrictions, or covenants.

Supplemental balance sheet information related to the Company’s leases were as follows:


	May 31,
$ in millions	2026			2025
Operating lease ROU assets, net of accumulated amortization	$	63.9		$	63.8
Operating lease liabilities, current(1)		22.0			22.5
Operating lease liabilities, non-current		52.2			55.5

Weighted average remaining lease term (in years)		5.1			4.0
Weighted average discount rate		4.13	%		3.73	%

(1)

The current portion of operating lease liabilities is reported in the other current liabilities line item on the Company’s Consolidated Balance Sheets.

The components of lease expense were as follows:


	Year ended May 31,
In millions	2026		2025			2024
Fixed payment operating lease expense	$	19.8	$	27.7	$		28.7
Variable payment operating lease expense		4.1		4.8			5.8
Short-term lease expense		0.0		0.0			0.0

During the fiscal fourth quarter ended May 31, 2024, the Company focused on cost optimization initiatives, including further reductions to the Company's geographic footprint. As part of this initiative the Company ceased the use of certain leased property and accelerated the amortization of certain ROU assets, resulting in an additional $9.7 million of expense. This expense is included in cost of service revenue and selling, general and administrative expenses on the Consolidated Statements of Income and Comprehensive Income. The related lease liabilities will be satisfied under the original terms of the lease arrangements, unless buy-outs can be negotiated.

Supplemental cash flow information related to the Company’s leases were as follows:


	Year ended May 31,
In millions	2026		2025			2024
Cash paid for amounts included in the measurement of lease liabilities	$	23.7	$	24.9	$		20.9
Amortization of ROU assets		16.0		14.0			25.8
ROU assets obtained in exchange for new operating lease liabilities		21.6		32.0			7.2
Lease incentives received in the form of tenant allowances and free rent		0.4		0.6			0.8

Future lease payments are as follows:


	May 31,
In millions	2026
2027	$	21.4
2028		17.1
2029		14.7
2030		11.1
2031		7.4
Thereafter		11.7
Total future lease payments		83.4
Less: imputed interest		9.2
Total operating lease liabilities	$	74.2
Current portion	$	22.0
Non-current portion	$	52.2

As of May 31, 2026, the Company has entered into one lease agreement that had not yet commenced for a term of 7.58 years. This lease will require lease payments over the term of approximately $14.5 million.