LEASES

6 Months Ended

Feb. 29, 2020

Leases [Abstract]

Operating Leases

NOTE 7. LEASES

The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's condensed consolidated balance sheet at February 29, 2020:

(in thousands)	Classification in Condensed Consolidated Balance Sheet	February 29, 2020
Assets:
Operating assets	Other noncurrent assets	$	124,749
Finance assets	Property, plant and equipment, net	43,647
Total leased assets		$	168,396
Liabilities:
Operating lease liabilities:
Current	Accrued expenses and other payables	$	27,900
Long-term	Other noncurrent liabilities	99,283
Total operating lease liabilities		127,183
Finance lease liabilities:
Current	Current maturities of long-term debt and short-term borrowings	12,604
Long-term	Long-term debt	31,254
Total finance lease liabilities		43,858
Total lease liabilities		$	171,041

The components of lease cost were as follows:

(in thousands)	Three Months Ended February 29, 2020		Six Months Ended February 29, 2020
Operating lease expense	$	8,815	$	17,605
Finance lease expense:
Amortization of assets	2,720		4,885
Interest on lease liabilities	465		866
Total finance lease expense	3,185		5,751
Variable and short term-lease expense	4,381		8,314
Total lease expense	$	16,381	$	31,670

The weighted-average remaining lease term and discount rate for operating and finance leases are presented in the following table:

	February 29, 2020
Weighted-average remaining lease term (years)
Operating leases	6.5
Finance leases	3.9
Weighted-average discount rate
Operating leases	4.160	%
Finance leases	4.216	%

Cash flow and other information related to leases is included in the following table:

(in thousands)	Six Months Ended February 29, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from operating leases	$	17,594
Operating cash outflows from finance leases	787
Financing cash outflows from finance leases	6,426
ROU assets obtained in exchange for lease obligations:
Operating leases	28,942
Finance leases	13,040

Maturities of lease liabilities at February 29, 2020 are presented in the following table:

(in thousands)	Operating Leases		Finance Leases
Year 1	$	32,620	$	14,189
Year 2	27,531		11,963
Year 3	22,156		9,521
Year 4	17,563		7,626
Year 5	12,455		4,277
Thereafter	34,680		74
Total lease payments	147,005		47,650
Less: Imputed interest	19,822		3,792
Present value of lease liabilities	$	127,183	$	43,858

Future maturities of lease liabilities at August 31, 2019, prior to adoption of ASU 2016-02, are presented in the following table:

			Twelve Months Ended August 31,
(in thousands)	Total		2020	2021	2022	2023	2024	Thereafter
Capital lease obligations	$	41,331	13,104	10,004	7,758	5,831	3,904	$	730
Long-term non-cancelable operating leases	$	124,817	34,511	27,383	22,074	17,433	10,478	$	12,938

Finance Leases

NOTE 7. LEASES

The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's condensed consolidated balance sheet at February 29, 2020:

(in thousands)	Classification in Condensed Consolidated Balance Sheet	February 29, 2020
Assets:
Operating assets	Other noncurrent assets	$	124,749
Finance assets	Property, plant and equipment, net	43,647
Total leased assets		$	168,396
Liabilities:
Operating lease liabilities:
Current	Accrued expenses and other payables	$	27,900
Long-term	Other noncurrent liabilities	99,283
Total operating lease liabilities		127,183
Finance lease liabilities:
Current	Current maturities of long-term debt and short-term borrowings	12,604
Long-term	Long-term debt	31,254
Total finance lease liabilities		43,858
Total lease liabilities		$	171,041

The components of lease cost were as follows:

(in thousands)	Three Months Ended February 29, 2020		Six Months Ended February 29, 2020
Operating lease expense	$	8,815	$	17,605
Finance lease expense:
Amortization of assets	2,720		4,885
Interest on lease liabilities	465		866
Total finance lease expense	3,185		5,751
Variable and short term-lease expense	4,381		8,314
Total lease expense	$	16,381	$	31,670

The weighted-average remaining lease term and discount rate for operating and finance leases are presented in the following table:

	February 29, 2020
Weighted-average remaining lease term (years)
Operating leases	6.5
Finance leases	3.9
Weighted-average discount rate
Operating leases	4.160	%
Finance leases	4.216	%

Cash flow and other information related to leases is included in the following table:

(in thousands)	Six Months Ended February 29, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from operating leases	$	17,594
Operating cash outflows from finance leases	787
Financing cash outflows from finance leases	6,426
ROU assets obtained in exchange for lease obligations:
Operating leases	28,942
Finance leases	13,040

Maturities of lease liabilities at February 29, 2020 are presented in the following table:

(in thousands)	Operating Leases		Finance Leases
Year 1	$	32,620	$	14,189
Year 2	27,531		11,963
Year 3	22,156		9,521
Year 4	17,563		7,626
Year 5	12,455		4,277
Thereafter	34,680		74
Total lease payments	147,005		47,650
Less: Imputed interest	19,822		3,792
Present value of lease liabilities	$	127,183	$	43,858

Future maturities of lease liabilities at August 31, 2019, prior to adoption of ASU 2016-02, are presented in the following table:

			Twelve Months Ended August 31,
(in thousands)	Total		2020	2021	2022	2023	2024	Thereafter
Capital lease obligations	$	41,331	13,104	10,004	7,758	5,831	3,904	$	730
Long-term non-cancelable operating leases	$	124,817	34,511	27,383	22,074	17,433	10,478	$	12,938