LEASES

9 Months Ended

May 31, 2022

Leases [Abstract]

Operating Leases

NOTE 8. 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 sheets:

(in thousands)	Classification in Condensed Consolidated Balance Sheets	May 31, 2022		August 31, 2021
Assets:
Operating assets	Other noncurrent assets	$	134,321	$	112,202
Finance assets	Property, plant and equipment, net	59,791		55,308
Total leased assets		$	194,112	$	167,510
Liabilities:
Operating lease liabilities:
Current	Accrued expenses and other payables	$	31,185	$	26,433
Long-term	Other noncurrent liabilities	105,971		93,409
Total operating lease liabilities		137,156		119,842
Finance lease liabilities:
Current	Current maturities of long-term debt and short-term borrowings	18,060		16,040
Long-term	Long-term debt	36,905		36,104
Total finance lease liabilities		54,965		52,144
Total lease liabilities		$	192,121	$	171,986

The components of lease expense were as follows:

	Three Months Ended May 31,				Nine Months Ended May 31,
(in thousands)	2022		2021		2022		2021
Operating lease expense	$	8,659	$	8,377	$	25,991	$	25,750
Finance lease expense:
Amortization of assets	3,268		3,270		9,722		9,729
Interest on lease liabilities	508		555		1,520		1,673
Total finance lease expense	3,776		3,825		11,242		11,402
Variable and short-term lease expense	6,046		4,584		16,197		13,871
Total lease expense	$	18,481	$	16,786	$	53,430	$	51,023

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

	May 31, 2022		August 31, 2021
Weighted average remaining lease term (years):
Operating leases	5.4		6.2
Finance leases	3.4		3.6
Weighted average discount rate:
Operating leases	4.033	%	4.451	%
Finance leases	4.057	%	4.079	%

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

	Nine Months Ended May 31,
(in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	26,481	$	25,862
Operating cash outflows from finance leases	1,521		1,665
Financing cash outflows from finance leases	12,847		11,706
Right of use assets obtained in exchange for lease obligations:
Operating leases	$	45,949	$	23,019
Finance leases	15,670		14,002

Future maturities of lease liabilities at May 31, 2022 are presented in the following table:

(in thousands)	Operating Leases		Finance Leases
Year 1	$	36,496	$	19,890
Year 2	30,653		17,390
Year 3	24,942		12,538
Year 4	19,898		5,730
Year 5	13,750		2,467
Thereafter	28,500		331
Total lease payments	154,239		58,346
Less imputed interest	(17,083)		(3,381)
Present value of lease liabilities	$	137,156	$	54,965

Finance Leases

NOTE 8. 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 sheets:

(in thousands)	Classification in Condensed Consolidated Balance Sheets	May 31, 2022		August 31, 2021
Assets:
Operating assets	Other noncurrent assets	$	134,321	$	112,202
Finance assets	Property, plant and equipment, net	59,791		55,308
Total leased assets		$	194,112	$	167,510
Liabilities:
Operating lease liabilities:
Current	Accrued expenses and other payables	$	31,185	$	26,433
Long-term	Other noncurrent liabilities	105,971		93,409
Total operating lease liabilities		137,156		119,842
Finance lease liabilities:
Current	Current maturities of long-term debt and short-term borrowings	18,060		16,040
Long-term	Long-term debt	36,905		36,104
Total finance lease liabilities		54,965		52,144
Total lease liabilities		$	192,121	$	171,986

The components of lease expense were as follows:

	Three Months Ended May 31,				Nine Months Ended May 31,
(in thousands)	2022		2021		2022		2021
Operating lease expense	$	8,659	$	8,377	$	25,991	$	25,750
Finance lease expense:
Amortization of assets	3,268		3,270		9,722		9,729
Interest on lease liabilities	508		555		1,520		1,673
Total finance lease expense	3,776		3,825		11,242		11,402
Variable and short-term lease expense	6,046		4,584		16,197		13,871
Total lease expense	$	18,481	$	16,786	$	53,430	$	51,023

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

	May 31, 2022		August 31, 2021
Weighted average remaining lease term (years):
Operating leases	5.4		6.2
Finance leases	3.4		3.6
Weighted average discount rate:
Operating leases	4.033	%	4.451	%
Finance leases	4.057	%	4.079	%

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

	Nine Months Ended May 31,
(in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	26,481	$	25,862
Operating cash outflows from finance leases	1,521		1,665
Financing cash outflows from finance leases	12,847		11,706
Right of use assets obtained in exchange for lease obligations:
Operating leases	$	45,949	$	23,019
Finance leases	15,670		14,002

Future maturities of lease liabilities at May 31, 2022 are presented in the following table:

(in thousands)	Operating Leases		Finance Leases
Year 1	$	36,496	$	19,890
Year 2	30,653		17,390
Year 3	24,942		12,538
Year 4	19,898		5,730
Year 5	13,750		2,467
Thereafter	28,500		331
Total lease payments	154,239		58,346
Less imputed interest	(17,083)		(3,381)
Present value of lease liabilities	$	137,156	$	54,965