The Company is a lessee under various leases for facilities and equipment. As of May 31, 2023, the Company was the lessee for 160 operating leases with terms of 12 months or more and 14 finance leases. Many of the operating leases either have renewal options of between one and five years or convert to month-to-month agreements at the end of the specified lease term.

The Company’s operating leases are primarily for (i) operating facilities, (ii) vehicles and equipment used in operations, (iii) facilities used for back-office functions and (iv) equipment used for back-office functions, and (v) temporary storage. The majority of the Company’s long-term lease expenses have both a fixed and variable component.

Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has a significant number of short-term leases, including month-to-month agreements. The Company's short-term lease agreements include expenses incurred hourly, daily, monthly and for other durations of time of one year or less.

The Company’s future lease commitments as of May 31, 2023 do not reflect all of the Company’s short-term lease commitments.

The following table outlines the classification of the Company's right-of-use asset and lease liabilities in the balance sheets as of May 31, 2023 and February 28, 2023 (in thousands):


	Balance Sheet Classification	As of
		May 31, 2023		February 28, 2023
Assets
Right-of-use assets	Right-of-use assets	$	26,262	$	26,392
Liabilities
Operating lease liabilities ― short-term	Lease liability - short-term	$	6,273	$	6,119
Operating lease liabilities ― long-term	Lease liability - long-term	19,455		19,659
Finance lease liabilities ― short-term	Lease liability - short-term	288		284
Finance lease liabilities ― long-term	Lease liability - long-term	972		1,045

Supplemental information related to the Company's portfolio of operating leases was as follows (in thousands, except years and percentages):


	Three Months Ended May 31,
	2023		2022
Operating cash flows from operating leases included in lease liabilities	$	1,825	$	1,147
Lease liabilities obtained from new ROU assets - operating	$	1,509	$	111
Operating and financing cash flows from financing leases included in lease liabilities	$	86	$	45
Lease liabilities obtained from new ROU assets - financing	$	—	$	—


	As of
	May 31, 2023		February 28, 2023
Weighted-average remaining lease term - operating leases	4.76 years		5.04 years
Weighted-average discount rate - operating leases	4.37	%	4.31	%
Weighted-average remaining lease term - financing leases	4.37 years		4.61 years
Weighted-average discount rate - financing leases	5.17	%	5.15	%

The following table outlines the classification of lease expense related to operating leases from continuing operations, in the statements of operations (in thousands):


	Three Months Ended May 31,
	2023		2022
Cost of sales	$	3,102	$	2,070
Selling, general and administrative	499		374
Total lease cost	$	3,601	$	2,444

As of May 31, 2023, maturities of the Company's lease liabilities, excluding lease liabilities associated with our discontinued operations, were as follows (in thousands):


Fiscal year:	Operating Leases		Finance Leases		Total
2024	$	5,483	$	258	$	5,741
2025	6,658		344		7,002
2026	5,742		300		6,042
2027	4,565		268		4,833
2028	2,491		195		2,686
2029	1,959		43		2,002
Thereafter	1,627		—		1,627
Total lease payments	$	28,525	$	1,408	$	29,933
Less imputed interest	(2,796)		(149)		(2,945)
Total	$	25,729	$	1,259	$	26,988

The Company subleases multiple buildings in Columbia, South Carolina to multiple subtenants. The Columbia sublease agreements are by and between Precoat Metals and multiple subtenants. Sublease income is recognized over the term of the sublease on a straight-line basis and is reported in the consolidated statement of operations in "Cost of sales." The Company recognized $0.2 million of income from subleases during the three months ended May 31, 2023.