v3.26.3
LEASES
 12 Months Ended
Aug. 31, 2026
Leases [Abstract]  
LEASES LEASES
Our operating lease arrangements relate to our office space and data centers. We review new arrangements at inception to evaluate whether we obtain substantially all the economic benefits of and have the right to control the use of an asset. Our lease ROU assets and lease liabilities are recognized based on the present value of future minimum lease payments at lease commencement or modification date (which includes fixed lease payments and certain qualifying index-based variable payments) over the reasonably certain lease term, leveraging an estimated IBR. The initial carrying value of our lease ROU assets may also be adjusted due to prepayments, lease incentives received and initial direct costs incurred. We account for lease and non-lease components as a single lease component, which we recognize over the expected lease term on a straight-line expense basis in occupancy costs (a component of SG&A expense) in our Consolidated Statements of Income.
As of August 31, 2026, we recognized $113.3 million of Lease ROU assets, net and $172.4 million of combined Current lease liabilities and Long-term lease liabilities in the Consolidated Balance Sheets. Our leases have remaining lease terms ranging from less than one year to just under 10 years. Our lease agreements may include options to extend or terminate the lease, which would be included in the measurement of our lease term if it is reasonably certain that we will exercise the option.
The following table presents our future minimum lease payments and a reconciliation to the combined Current lease liabilities and Long-term lease liabilities in the Consolidated Balance Sheets as of August 31, 2026:
(in thousands) Minimum Lease
Payments
Fiscal Years Ended August 31,
2027$41,602 
202837,538 
202932,133 
203027,116 
203121,013 
Thereafter39,091 
Total minimum lease payments$198,493 
Less: Imputed interest26,101 
Total lease liabilities$172,392 
The following table includes components of our occupancy costs:
Years ended August 31,
(in thousands)
202620252024
Operating lease costs(1)
$32,268 $30,982 $30,407 
Variable lease costs(2)
$17,749 $18,110 $17,280 
(1) Operating lease costs include costs associated with fixed lease payments and index-based variable payments that qualified for lease accounting under ASC 842, Leases and complied with the practical expedients and exceptions we elected.
(2) Variable lease costs include costs that are not fixed and are not dependent on an index or rate. These costs were not included in the measurement of lease liabilities and primarily include variable non-lease costs, such as utilities, real estate taxes, insurance and maintenance, as well as lease costs for those leases that qualified for the short-term lease exception.
The following table summarizes our weighted average remaining lease term and weighted average discount rate related to our operating leases recorded on the Consolidated Balance Sheets:
As of August 31,
20262025
Weighted average remaining lease term (in years)
6.16.1
Weighted average discount rate (IBR)
4.8 %4.7 %
The following table summarizes supplemental cash flow information related to our operating leases:
Years ended August 31,
(in thousands)
202620252024
Cash paid for amounts included in the measurement of lease liabilities$40,176 $40,613 $39,386 
Lease ROU assets obtained in exchange for lease liabilities(1)
$23,875 $7,439 $10,268 
Reductions to ROU assets resulting from reductions to lease liabilities(2)
$— $(5,529)$(281)
(1) Primarily includes new lease arrangements entered into during the respective period and contract modifications that extend our lease terms and/or provide additional rights.
(2) Primarily relates to lease term reassessments based on contractual options to early terminate, resulting in a reduction to the lease liability and the corresponding lease ROU asset.