Annual report pursuant to Section 13 and 15(d)

Leases

v3.21.2
Leases
 12 Months Ended
Aug. 31, 2021
Leases [Abstract]  
Lessee, Operating Leases
Note 10.    Leases
As of August 31, 2021, the Company had operating leases for real estate, vehicles, manufacturing equipment, IT equipment and office equipment. The Company did not have significant finance leases during the year ended August 31, 2021. Our leases typically range in term from 3 to 15 years and may contain renewal options for periods up to 5 years at our
discretion. Our leases generally contain payments that are primarily fixed; however, certain lease arrangements contain variable payments, which are expensed as incurred and not included in the measurement of ROU assets and lease liabilities. These amounts include payments affected by changes in the Consumer Price Index and executory costs (such as real estate taxes, utilities and common-area maintenance), which are based on usage or performance. In addition, our leases generally do not include material residual value guarantees or material restrictive covenants.
During the year ended August 31, 2021, the Company sold and subsequently leased back a portion of its manufacturing facility in China as part of a global footprint rationalization initiative. In connection with the transaction, the Company recognized a gain of $10.0 million. The gain is recorded in "Selling, general and administrative expenses" within the Consolidated Statements of Operations and in "Other non-cash (benefits) charges" within the Consolidated Statements of Cash Flows. The Company also incurred $4.6 million of closing related costs and value-added and land taxes associated with this transaction also included in "Selling, general and administrative expenses" within the Consolidated Statements of Operations.
The components of lease expense for the year ended August 31, 2021 and 2020 were as follows (in thousands):
Year Ended August 31,
2021 2020
Lease Cost:
Operating lease cost $ 15,170  $ 15,713 
Short-term lease cost 1,611  1,508 
Variable lease cost 3,086  2,244 
Supplemental cash flow and other information related to leases for the year ended August 31, 2021 and 2020 were as follows (in thousands):
Year Ended August 31,
2021 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 15,240  $ 15,768 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases 9,197  5,727 
Supplemental balance sheet information related to leases at August 31, 2021 and 2020 were as follows (in thousands):
August 31, 2021 August 31, 2020
Operating leases:
Other long-term assets $ 51,589  $ 48,733 
Other current liabilities 11,917  11,870 
Other long-term liabilities 40,568  38,079 
Total operating lease liabilities $ 52,485  $ 49,949 
Weighted Average Remaining Lease Term (in years):
Operating leases 6.7 years 7.6 years
Weighted Average Discount Rate:
Operating leases 4.3  % 4.4  %
A summary of the future minimum lease payments due under operating leases with terms of more than one year at August 31, 2021 is as follows (in thousands):
Operating Leases
2022 $ 13,793 
2023 11,589 
2024 9,485 
2025 7,436 
2026 4,713 
Thereafter 13,869 
Total minimum lease payments 60,885 
Less imputed interest (8,400)
Present value of net minimum lease payments $ 52,485 
As of August 31, 2021, we have an additional operating lease of $2.4 million, for real estate, that has not yet commenced and therefore is not reflected on the consolidated balance sheet nor in the tables above. This operating lease commences in fiscal 2022 with a lease term of 6.3 years. All other leases not yet commenced are considered immaterial to our financial statements