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Leases
 3 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases
Note 7 - Leases
As of December 31, 2024, we have facility leases at 29 of our 32 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. The 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 December 31, 2024, resulted in minimal income. All leases, other than those that may qualify for the short-term scope exception of 12 months or less, are recorded on our condensed consolidated balance sheets. As of December 31, 2024, we have entered into an additional real estate lease agreement that has not yet commenced with total minimum lease payments of approximately $2.5 million over a term of 7 years.
The components of lease expense during the three months ended December 31, 2024 and 2023 were as follows:
Three Months Ended December 31,
Lease Expense20242023
Operating lease expense(1)
$7,602 $7,660 
Finance lease expense:
Amortization of leased assets227 227 
Interest on lease liabilities70 82 
Variable lease expense2,616 2,362 
Sublease income(29)(33)
Total net lease expense$10,486 $10,298 
(1)    Excludes the expense for short-term leases, which was not significant for the three months ended December 31, 2024 and 2023.
Supplemental balance sheet, cash flow and other information related to our leases was as follows (in thousands, except lease term and discount rate):
LeasesClassificationDecember 31, 2024September 30, 2024
Assets:
Operating lease assetsRight-of-use assets for operating leases$155,666 $158,778 
Finance lease assets
Property and equipment, net(1)
3,710 3,937 
Total leased assets$159,376 $162,715 
Liabilities:
Current
   Operating lease liabilitiesOperating lease liabilities, current portion$21,688 $22,210 
   Finance lease liabilities
Long-term debt, current portion(1)
957 934 
Non-current
   Operating lease liabilitiesOperating lease liabilities144,409 146,831 
   Finance lease liabilitiesLong-term debt3,589 3,834 
Total lease liabilities$170,643 $173,809 
(1)     The finance lease assets and liabilities as of December 31, 2024 and September 30, 2024 consisted of one facility lease. Finance lease assets are recorded net of accumulated amortization of $1.9 million and $1.7 million as of December 31, 2024 and September 30, 2024, respectively.

Lease Term and Discount RateDecember 31, 2024September 30, 2024
Weighted-average remaining lease term (in years):
   Operating leases7.017.14
   Finance lease4.084.33
Weighted average discount rate:
   Operating leases4.89 %4.87 %
   Finance lease6.02 %6.02 %
Three Months Ended December 31,
Supplemental Disclosure of Cash Flow and Other Information20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$5,426 $4,708 
Financing cash flows from finance leases223 201 
Non-cash activity related to lease liabilities:
   Lease assets obtained in exchange for new operating lease liabilities$2,481 $3,847 
Maturities of lease liabilities were as follows:
As of December 31, 2024
Years ending September 30,Operating LeasesFinance Lease
Remainder of 2025$22,340 $898 
202629,512 1,226 
202728,986 1,263 
202827,170 1,301 
202926,474 439 
2030 and thereafter61,831 — 
Total lease payments196,313 5,127 
Less: interest(30,216)(581)
Present value of lease liabilities166,097 4,546 
Less: current lease liabilities(21,688)(957)
Long-term lease liabilities$144,409 $3,589 
Leases
Note 7 - Leases
As of December 31, 2024, we have facility leases at 29 of our 32 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. The 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 December 31, 2024, resulted in minimal income. All leases, other than those that may qualify for the short-term scope exception of 12 months or less, are recorded on our condensed consolidated balance sheets. As of December 31, 2024, we have entered into an additional real estate lease agreement that has not yet commenced with total minimum lease payments of approximately $2.5 million over a term of 7 years.
The components of lease expense during the three months ended December 31, 2024 and 2023 were as follows:
Three Months Ended December 31,
Lease Expense20242023
Operating lease expense(1)
$7,602 $7,660 
Finance lease expense:
Amortization of leased assets227 227 
Interest on lease liabilities70 82 
Variable lease expense2,616 2,362 
Sublease income(29)(33)
Total net lease expense$10,486 $10,298 
(1)    Excludes the expense for short-term leases, which was not significant for the three months ended December 31, 2024 and 2023.
Supplemental balance sheet, cash flow and other information related to our leases was as follows (in thousands, except lease term and discount rate):
LeasesClassificationDecember 31, 2024September 30, 2024
Assets:
Operating lease assetsRight-of-use assets for operating leases$155,666 $158,778 
Finance lease assets
Property and equipment, net(1)
3,710 3,937 
Total leased assets$159,376 $162,715 
Liabilities:
Current
   Operating lease liabilitiesOperating lease liabilities, current portion$21,688 $22,210 
   Finance lease liabilities
Long-term debt, current portion(1)
957 934 
Non-current
   Operating lease liabilitiesOperating lease liabilities144,409 146,831 
   Finance lease liabilitiesLong-term debt3,589 3,834 
Total lease liabilities$170,643 $173,809 
(1)     The finance lease assets and liabilities as of December 31, 2024 and September 30, 2024 consisted of one facility lease. Finance lease assets are recorded net of accumulated amortization of $1.9 million and $1.7 million as of December 31, 2024 and September 30, 2024, respectively.

Lease Term and Discount RateDecember 31, 2024September 30, 2024
Weighted-average remaining lease term (in years):
   Operating leases7.017.14
   Finance lease4.084.33
Weighted average discount rate:
   Operating leases4.89 %4.87 %
   Finance lease6.02 %6.02 %
Three Months Ended December 31,
Supplemental Disclosure of Cash Flow and Other Information20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$5,426 $4,708 
Financing cash flows from finance leases223 201 
Non-cash activity related to lease liabilities:
   Lease assets obtained in exchange for new operating lease liabilities$2,481 $3,847 
Maturities of lease liabilities were as follows:
As of December 31, 2024
Years ending September 30,Operating LeasesFinance Lease
Remainder of 2025$22,340 $898 
202629,512 1,226 
202728,986 1,263 
202827,170 1,301 
202926,474 439 
2030 and thereafter61,831 — 
Total lease payments196,313 5,127 
Less: interest(30,216)(581)
Present value of lease liabilities166,097 4,546 
Less: current lease liabilities(21,688)(957)
Long-term lease liabilities$144,409 $3,589