Quarterly report pursuant to Section 13 or 15(d)

Leases Leases

Leases Leases
9 Months Ended
May 31, 2021
Leases [Abstract]  
Lessee, Operating Leases [Text Block]
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.
The components of lease expense were as follows (in thousands):
Three Months Ended Nine Months Ended
May 31, 2021 May 31, 2020 May 31, 2021 May 31, 2020
Lease Cost:
Operating lease cost $ 3,861  $ 3,818  $ 11,333  $ 11,966 
Short-term lease cost 431  343  1,241  1,108 
Variable lease cost 803  447  2,550  1,480 
In the three months ended May 31, 2021, the Company sold and subsequently leased back a portion of our manufacturing facility in China as part of our global footprint rationalization initiative. In connection with the transaction, the Company recognized a gain of $10.0 million. The Company also incurred $4.6 million of closing related costs and value-added and land taxes associated with this transaction for a net gain of $5.4 million which is recorded in "Selling, general and administrative expenses" within the Condensed Consolidated Statements of Operations.
Supplemental cash flow and other information related to leases were as follows (in thousands):
Nine Months Ended
May 31, 2021 May 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 11,336  $ 11,908 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases 5,468  4,773