Equipment on operating leases is reported net of accumulated depreciation of $80.7 million and $68.0 million as of February 29, 2024 and August 31, 2023, respectively. Depreciation expense was $8.4 million and $16.2 million for the three and six months ended February 29, 2024, respectively and $6.8 million and $12.8 million for the three and six months ended February 28, 2023, respectively. In addition, certain railcar equipment leased-in by the Company on operating leases is subleased to customers under non-cancelable operating leases with lease terms ranging from one to approximately twelve years. Operating lease rental revenues included in the Company’s Condensed Consolidated Statements of Income for the three and six months ended February 29, 2024 was $30.5 million and $58.1 million, respectively, which included $5.1 million and $10.5 million, respectively, of revenue as a result of daily, monthly or car hire utilization arrangements. Operating lease rental revenues included in the Company’s Condensed Consolidated Statements of Income for the three and six months ended February 28, 2023 was $23.8 million and $43.4 million, respectively, which included $4.9 million and $9.7 million, respectively, of revenue as a result of daily, monthly or car hire utilization arrangements.

Aggregate minimum future amounts receivable under all non-cancelable operating leases and subleases at February 29, 2024, will mature as follows:


(in millions)
Remaining six months of 2024	$	48.5
2025		87.9
2026		79.0
2027		69.3
2028		53.3
Thereafter		107.7
	$	445.7

The Company leases railcars, real estate, and certain equipment under operating and, to a lesser extent, finance lease arrangements. As of and for the three and six months ended February 29, 2024 and February 28, 2023, finance leases were not a material component of the Company's lease portfolio. The Company’s real estate and equipment leases have remaining lease terms ranging from less than one year to 75 years, with some including options to extend up to 7 years. The Company recognizes a lease liability and corresponding right-of-use (ROU) asset based on the present value of lease payments. To determine the present value of lease payments, as most of its leases do not provide a readily determinable implicit rate, the Company’s incremental borrowing rate is used to discount the lease payments based on information available at each lease commencement date. The Company gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when estimating its incremental borrowing rate.

The components of operating lease costs were as follows:


	Three Months Ended				Six Months Ended
(in millions)	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023
Operating lease expense	$	4.2	$	3.1	$	8.4	$	6.4
Short-term lease expense		1.7		2.6		3.8		4.4
Total	$	5.9	$	5.7	$	12.2	$	10.8

Aggregate minimum future amounts payable under operating leases having initial or remaining non-cancelable terms at February 29, 2024, will mature as follows:


(in millions)
Remaining six months of 2024	$	7.7
2025		14.2
2026		13.4
2027		10.6
2028		9.7
Thereafter		23.9
Total lease payments	$	79.5
Less: Imputed interest		(7.6	)
Total lease obligations	$	71.9

The table below presents additional information related to the Company’s leases:


Weighted average remaining lease term (years):
Operating leases	10.6

Weighted average discount rate:
Operating leases	2.7	%

Supplemental cash flow information related to leases were as follows:


(in millions)	Six Months Ended February 29, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8.8
ROU assets obtained in exchange for new operating lease liabilities	$	7.6