Adtalem Global Education Inc.

11. Leases

We determine if a contract contains a lease at inception. We have entered into operating leases for academic sites, housing facilities, and office space which expire at various dates through December 2042, most of which include options toterminate for a fee orextend the leases for an additional five-year period. The lease term includes the noncancelable period of the lease, as well as any periods for which we are reasonably certain to exercise extension options. We account for lease and non-lease components (e.g., common-area maintenance costs) as a single lease component for all operating leases. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. We have not entered into any finance leases.

Operating lease assets represent our right to use an underlying asset during the lease term. Operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. Operating lease assets are adjusted for any prepaid or accrued lease payments, lease incentives, initial direct costs, and impairments. Our incremental borrowing rate is utilized in determining the present value of the lease payments based upon the information available at the commencement date. Our incremental borrowing rate is determined using a secured borrowing rate for the same currency and term as the associated lease. Operating lease expense is recognized on a straight-line basis over the lease term.

As of December 31, 2025, we entered into four additional operating leases that have not yet commenced. The first lease is expected to commence during the third quarter of fiscal year 2026, has a 13-year lease term, and will result in an additional operating lease asset and operating lease liability of approximately $4.5 million. The second lease is expected to commence during the third quarter of fiscal year 2026, has a 13-year lease term, and will result in an additional operating lease asset and operating lease liability of approximately $2.0 million. The third lease is expected to commence during the third quarter of fiscal year 2026, has a 13-year lease term, and will result in an additional operating lease asset and operating lease liability of approximately $1.7 million. The fourth lease is expected to commence during the fourth quarter of fiscal year 2026, has a 17-year lease term, and will result in an additional operating lease asset and operating lease liability of approximately $4.1 million.

The components of lease cost were as follows (in thousands):

Maturities of lease liabilities as of December 31, 2025 were as follows (in thousands):

Lease term and discount rate were as follows:

Supplemental disclosures of cash flow information related to leases were as follows (in thousands):