We rent certain office space for use in our operations. Our lease population at July 31, 2026 is comprised of operating leases where we are the lessee, primarily for our corporate office and division offices.

Lease costs are included in our Condensed Consolidated Statements of Operations, primarily in "Selling, general and administrative" homebuilding expenses, and payments on our lease liabilities are presented in the table below.

Operating right-of-use lease assets ("ROU assets") are included in "Prepaid expenses and other assets" on our Condensed Consolidated Balance Sheets, while lease liabilities are included in "Accounts payable and other liabilities." During the nine months ended July 31, 2026, we had an increase to ROU assets of $10.4 million and an increase to lease liabilities of $12.9 million primarily as a result of new leases and lease renewals, adjusted for lease incentives, that commenced during the period. During the nine months ended July 31, 2026, we recognized $4.9 million of income included in "Other expense (income), net" in our Condensed Consolidated Statements of Operations, due to the receipt of an early termination fee to leave office space in the Northeast segment before the lease maturity date. The following table contains additional information about our leases:

Maturities of our operating lease liabilities as of July 31, 2026 are as follows: