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. 29, 2024

Note 14. Leases

The Company has operating leases for real estate, vehicles, manufacturing equipment, IT equipment and office equipment (the Company does not have any significant 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 29, 2024.

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


	Three Months Ended				Six Months Ended
	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023
Lease Cost:
Operating lease cost	$	3,209	$	3,346	$	6,185	$	6,619
Short-term lease cost	524		590		1,109		1,084
Variable lease cost	731		1,108		1,650		2,222

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


	Six Months Ended
	February 29, 2024		February 28, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,081	$	6,547

Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	2,197		805