Enerpac Tool Group Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases Leases

Leases Leases

6 Months Ended

Feb. 28, 2023

Note 15. Leases

The Company has operating leases for real estate, vehicles, manufacturing equipment, IT equipment and office equipment (the Company does not have any financing leases). 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. Operating leases are recorded as operating lease ROU assets in “Other long-term assets” and operating lease liabilities in “Other current liabilities” and “Other long-term liabilities” of the Condensed Consolidated Balance Sheets. There have been no material changes to our operating lease ROU assets and operating lease liabilities during the six months ended February 28, 2023.

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


	Three Months Ended February 28,				Six Months Ended February 28,
	2023		2022		2023		2022
Lease Cost:
Operating lease cost	$	3,346	$	3,698	$	6,619	$	7,423
Short-term lease cost	590		399		1,084		849
Variable lease cost	1,108		1,110		2,222		2,014

Supplemental cash flow and other information related to leases were as follows (in thousands):


	Six Months Ended February 28,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,547	$	7,190

Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	805		3,598