Remaining lease term

[Table of Contents](#i677b09687fd443618b9c84261c8e0734_7)In the normal course of business, our tax filings are subject to audit by federal, state and foreign tax authorities. At August 31, 2022, we remained subject to examination in the following major tax jurisdictions for the tax years as indicated below:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| Major Tax Jurisdictions | Open Tax Years |
| U.S. |  |  |  |
| Federal | 2019 | through | 2021 |
| State (various) | 2019 | through | 2021 |
|  |  |  |  |
| Europe |  |  |  |
| United Kingdom | 2019 | through | 2021 |
| France | 2019 | through | 2021 |
| Germany | 2018 | through | 2021 |

  
11. LEASESOur lease portfolio is primarily related to our office space, under various operating lease agreements. 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 (which includes fixed lease payments and certain qualifying index-based variable payments) over the reasonably certain lease term, leveraging an estimated IBR. Certain adjustments to our lease ROU assets may be required due to prepayments, lease incentives received and initial direct costs incurred. We account for the lease and non-lease components as a single lease component, which we recognize over the expected term on a straight-line expense basis in occupancy costs (a component of SG&A expense). As of August 31, 2022, we recognized $159.5 million of Lease right-of-use assets, net and $237.8 million of combined Current lease liabilities and Long-term lease liabilities in the Consolidated Balance Sheet. Such leases have a remaining lease term ranging from less than one year to just over 13 years and did not include any renewal or termination options that were not yet reasonably certain to be exercised.The following table reconciles our future undiscounted cash flows related to our operating leases and the reconciliation to the combined Current lease liabilities and Long-term lease liabilities in the Consolidated Balance Sheets as of August 31, 2022: 

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| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| (in thousands)  | Minimum LeasePayments |
| Fiscal Years Ended August 31,  |
| 2023 | $ | 38,696  |  |
| 2024 | 35,316  |  |
| 2025 | 33,245  |  |
| 2026 | 32,540  |  |
| 2027 | 31,716  |  |
| Thereafter | 114,016  |  |
| Total | $ | 285,529  |  |
| Less: Imputed Interest | 47,722  |  |
| Present Value | $ | 237,807  |  |

The components of lease cost related to the operating leases were as follows:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
|  | Years ended August 31, |
| (in millions)  | 2022 | 2021 |
| Operating lease cost1 | $ | 38.8  |  | $ | 42.8  |  |
| Variable lease cost2 | $ | 11.5  |  | $ | 14.6  |  |

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 74
