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Leases

12 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

Note 11 - Leases

As of September 30, 2024, we have facility leases at 29 of our 33 campuses and two non-campus locations under non-cancelable operating or finance leases, some of which contain escalation clauses and requirements to pay other fees associated with the leases. Our facility leases have original lease terms ranging from 5 to 20 years and expire at various dates through 2036. In addition, the leases commonly include lease incentives in the form of rent abatements and tenant improvement allowances. We sublease certain portions of unused building space to third parties, which as of September 30, 2024, resulted in minimal income. All of the leases, other than those that may qualify for the short-term scope exception of 12 months or less, are recorded on our consolidated balance sheets.

The components of lease expense during the years ended September 30, 2024, 2023, and 2022 are presented below. The operating lease expense excludes expense for short-term leases not accounted for under ASC 842, which was not significant for the years ended September 30, 2024, 2023, or 2022.

						Year ended September 30,
Lease Expense						2024						2023						2022
Operating lease expense						$	30,394					$	29,450					$	22,424
Finance lease expense:
Amortization of leased assets						908						779						72
Interest on lease liabilities						311						296						2
Variable lease expense						10,805						8,725						5,469
Sublease income						(118)						(114)						(155)
Total net lease expense						$	42,300					$	39,136					$	27,812

Supplemental balance sheet, cash flow and other information related to our leases was as follows:

												September 30,
Leases						Classification						2024						2023
Assets:
Operating lease assets						Right-of-use assets for operating leases						$	158,778					$	176,657
Finance lease assets						Property and equipment, net(1)						3,937						4,846
Total leased assets												$	162,715					$	181,503
Liabilities:
Current
Operating lease liabilities						Operating lease liability, current portion						$	22,210					$	22,481
Finance lease liabilities						Long-term debt, current portion						934						844
Noncurrent
Operating lease liabilities						Operating lease liability						146,831						165,026
Finance lease liabilities						Long-term debt						3,834						4,757
Total lease liabilities												$	173,809					$	193,108

(1)     The finance lease assets and liabilities as of September 30, 2024 consisted of one facility lease. Finance lease assets are recorded net of accumulated amortization of $1.7 million and $0.8 million as of September 30, 2024 and 2023, respectively.

						September 30,
Lease Term and Discount Rate						2024						2023
Weighted-average remaining lease term (in years):
Operating leases						7.14						7.91
Finance leases						4.33						5.33
Weighted average discount rate:
Operating leases						4.87		%				4.76		%
Finance leases						6.02		%				6.02		%

						Year ended September 30,
Supplemental Disclosure of Cash Flow Information and Other Information						2024						2023						2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	22,449					$	20,474					$	13,952
Financing cash flows from finance leases						845						696						73
Non-cash activity related to lease liabilities:
Lease assets obtained in exchange for new operating lease liabilities						$	3,982					$	4,568					$	3,313

Maturities of lease liabilities were as follows:

						As of September 30, 2024
Years ending September 30,						Operating Leases						Finance Leases
2025						$	29,712					$	1,190
2026						30,059						1,226
2027						28,565						1,263
2028						26,743						1,301
2029						26,032						439
2030 and thereafter						58,837						—
Total future minimum lease payments						199,948						5,419
Less: interest						(30,907)						(651)
Present value of lease liabilities						169,041						4,768
Less: current lease liabilities						(22,210)						(934)
Long-term lease liabilities						$	146,831					$	3,834

Leases

Note 11 - Leases

As of September 30, 2024, we have facility leases at 29 of our 33 campuses and two non-campus locations under non-cancelable operating or finance leases, some of which contain escalation clauses and requirements to pay other fees associated with the leases. Our facility leases have original lease terms ranging from 5 to 20 years and expire at various dates through 2036. In addition, the leases commonly include lease incentives in the form of rent abatements and tenant improvement allowances. We sublease certain portions of unused building space to third parties, which as of September 30, 2024, resulted in minimal income. All of the leases, other than those that may qualify for the short-term scope exception of 12 months or less, are recorded on our consolidated balance sheets.

The components of lease expense during the years ended September 30, 2024, 2023, and 2022 are presented below. The operating lease expense excludes expense for short-term leases not accounted for under ASC 842, which was not significant for the years ended September 30, 2024, 2023, or 2022.

						Year ended September 30,
Lease Expense						2024						2023						2022
Operating lease expense						$	30,394					$	29,450					$	22,424
Finance lease expense:
Amortization of leased assets						908						779						72
Interest on lease liabilities						311						296						2
Variable lease expense						10,805						8,725						5,469
Sublease income						(118)						(114)						(155)
Total net lease expense						$	42,300					$	39,136					$	27,812

Supplemental balance sheet, cash flow and other information related to our leases was as follows:

												September 30,
Leases						Classification						2024						2023
Assets:
Operating lease assets						Right-of-use assets for operating leases						$	158,778					$	176,657
Finance lease assets						Property and equipment, net(1)						3,937						4,846
Total leased assets												$	162,715					$	181,503
Liabilities:
Current
Operating lease liabilities						Operating lease liability, current portion						$	22,210					$	22,481
Finance lease liabilities						Long-term debt, current portion						934						844
Noncurrent
Operating lease liabilities						Operating lease liability						146,831						165,026
Finance lease liabilities						Long-term debt						3,834						4,757
Total lease liabilities												$	173,809					$	193,108

(1)     The finance lease assets and liabilities as of September 30, 2024 consisted of one facility lease. Finance lease assets are recorded net of accumulated amortization of $1.7 million and $0.8 million as of September 30, 2024 and 2023, respectively.

						September 30,
Lease Term and Discount Rate						2024						2023
Weighted-average remaining lease term (in years):
Operating leases						7.14						7.91
Finance leases						4.33						5.33
Weighted average discount rate:
Operating leases						4.87		%				4.76		%
Finance leases						6.02		%				6.02		%

						Year ended September 30,
Supplemental Disclosure of Cash Flow Information and Other Information						2024						2023						2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						$	22,449					$	20,474					$	13,952
Financing cash flows from finance leases						845						696						73
Non-cash activity related to lease liabilities:
Lease assets obtained in exchange for new operating lease liabilities						$	3,982					$	4,568					$	3,313

Maturities of lease liabilities were as follows:

						As of September 30, 2024
Years ending September 30,						Operating Leases						Finance Leases
2025						$	29,712					$	1,190
2026						30,059						1,226
2027						28,565						1,263
2028						26,743						1,301
2029						26,032						439
2030 and thereafter						58,837						—
Total future minimum lease payments						199,948						5,419
Less: interest						(30,907)						(651)
Present value of lease liabilities						169,041						4,768
Less: current lease liabilities						(22,210)						(934)
Long-term lease liabilities						$	146,831					$	3,834

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- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/842-20/tableOfContent

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