Leases Leases

6 Months Ended

Aug. 31, 2019

We lease certain of the buildings and equipment used in our operations. We determine if an arrangement contains a lease at inception. Currently, all of our lease arrangements are classified as operating leases. We elected the package of practical expedients permitted under the transition guidance in adopting ASC 842, which among other things, allowed us to carry forward our historical lease classification. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term and lease expense is recognized on a straight-line basis over the lease term. Our leases have remaining lease terms of one to ten years, some of which include renewal options that can extend the lease for up to an additional ten years at our sole discretion. We have made an accounting policy election not to record leases with an original term of 12 months or less on our consolidated balance sheet and such leases are expensed on a straight-line basis over the lease term.

In determining lease asset value, we consider fixed or variable payment terms, prepayments, incentives, and options to extend, terminate or purchase. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. We use a discount rate for each lease based upon an estimated incremental borrowing rate over a similar term. We have elected the practical expedient to account for lease and nonlease components (e.g., common-area maintenance costs) as a single lease component. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We are not a lessor in any transactions.

The components of lease expense were as follows:



	Three Months Ended		Six Months Ended
In thousands	August 31, 2019		August 31, 2019
Operating lease cost	$	3,490	$	6,863
Short-term lease cost	496		1,179
Variable lease cost	667		1,380
Total lease cost	$	4,653	$	9,422

Other supplemental information related to leases was as follows:



	Six Months Ended
In thousands except weighted-average data	August 31, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	6,791
Lease assets obtained in exchange for new operating lease liabilities	$	8,970
Weighted-average remaining lease term - operating leases	6.0 years
Weighted-average discount rate - operating leases	3.70		%

Future maturities of lease liabilities are as follows:



In thousands	August 31, 2019
Remainder of Fiscal 2020	$	8,481
Fiscal 2021	11,256
Fiscal 2022	9,891
Fiscal 2023	8,989
Fiscal 2024	7,067
Fiscal 2025	5,331
Thereafter	10,659
Total lease payments	61,674
Less: Amounts representing interest	(7,536		)
Present value of lease liabilities	$	54,138

We have two operating leases with a related party; total rent paid for these facilities was approximately $1.0 million for the six months ended August 31, 2019, and the future minimum lease commitment is $12.2 million. As of August 31, 2019, we have additional future operating lease commitments of $6.0 million for leases that have not yet commenced, with terms ranging from one to seven years.

Aggregate annual future rental commitments under operating leases with noncancellable terms of more than one year at March 2, 2019 were reported under previous lease accounting standards as follows:



In thousands	2020		2021	2022	2023	2024	Thereafter	Total
Total minimum payments	$	14,888	11,787	9,669	8,772	6,735	16,806	$	68,657