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Leases | 12 Months Ended
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Aug. 31, 2020
Leases [Abstract] |
Leases | Leases Effective September 1, 2019, the Company adopted Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) using the modified retrospective approach and also elected to apply the package of practical expedients, which among other things, allows entities to maintain the historical lease classification for existing leases. The Company has lease agreements that contain both lease and non-lease components. For lease agreements entered into or reassessed after the adoption of ASU 2016-02, the Company has elected the practical expedient to combine lease and non-lease components for building and real estate leases. Upon adoption of ASU 2016-02, the Company recorded $414.6 million and $437.5 million of right-of-use assets and lease liabilities, respectively, related to its existing operating lease portfolio. The accounting for the Company's finance leases remained substantially unchanged and balances were not significant on the adoption date. The adoption of this standard did not have a material impact on the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. The following table sets forth the amount of lease assets and lease liabilities included on the Company's Consolidated Balance Sheets, as of the period indicated (in thousands):
|  | Financial Statement Line Item |  | August 31, 2020
Assets |  |  |  |
Operating lease assets (1) |  | Operating lease right-of-use assets |  | $ | 362,847 |
Finance lease assets (2) |  | Property, plant and equipment, net |  | 160,015 |
Total lease assets |  |  |  | $ | 522,862 |
Liabilities |  |  |  |
Current |  |  |  |
Operating lease liabilities |  | Current operating lease liabilities |  | $ | 110,723 |
Finance lease liabilities |  | Accrued expenses |  | 7,465 |
Non-current |  |  |  |  |
Operating lease liabilities |  | Non-current operating lease liabilities |  | 302,035 |
Finance lease liabilities |  | Other liabilities |  | 160,747 |
Total lease liabilities |  |  |  | $ | 580,970 |
(1) | Net of accumulated amortization of $96.2 million.
(2) | Net of accumulated amortization of $12.8 million.
The following table is a summary of expenses related to leases included on the Company's Consolidated Statements of Operations, for the periods indicated (in thousands):
| Fiscal Year Ended August 31,
| 2020
Operating lease cost | $ | 114,290 |
Finance lease cost |
Amortization of leased assets | 5,470 |
Interest on lease liabilities | 4,950 |
Other | 15,038 |
Net lease cost(1) | $ | 139,748 |
(1) | Lease costs are primarily recognized in cost of revenue.
The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company's leases, as of the period indicated:
| August 31, 2020
| Weighted-average remaining lease term |  | Weighted-average discount rate
Operating leases | 5.4 years |  | 3.18 | %
Finance leases | 5.7 years |  | 4.28 | %
The following table sets forth other supplemental information related to the Company's lease portfolio (in thousands):
| Fiscal Year Ended August 31,
| 2020
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows for operating leases(1) | $ | 112,267 |
Operating cash flows for finance leases(1) | 4,950 |
Financing activities for finance leases(2) | 6,242 |
Non-cash right-of-use assets obtained in exchange for new lease liabilities: |
Operating leases | 91,350 |
Finance leases | 111,591 |
(1) | Included in accounts payable, accrued expenses and other liabilities in Operating Activities of the Company's Consolidated Statements of Cash Flows.
(2) | Included in payments toward debt agreements in Financing Activities of the Company's Consolidated Statements of Cash Flows.
The future minimum lease payments under operating and finance leases as of August 31, 2020 were as follows (in thousands):
Fiscal Year Ending August 31, | Operating Leases(1) |  | Finance Leases |  | Total
2021 | $ | 121,196 |  |  | $ | 12,383 |  |  | $ | 133,579 |
2022 | 89,143 |  |  | 12,864 |  |  | 102,007 |
2023 | 67,952 |  |  | 12,363 |  |  | 80,315 |
2024 | 56,153 |  |  | 12,505 |  |  | 68,658 |
2025 | 36,924 |  |  | 43,185 |  |  | 80,109 |
Thereafter | 85,799 |  |  | 101,111 |  |  | 186,910 |
Total minimum lease payments | $ | 457,167 |  |  | $ | 194,411 |  |  | $ | 651,578 |
Less: Interest | (44,409 | ) |  | (26,199 | ) |  | (70,608 | )
Present value of lease liabilities | $ | 412,758 |  |  | $ | 168,212 |  |  | $ | 580,970 |
(1) | Excludes $137.8 million of payments related to leases signed but not yet commenced. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable.
As disclosed in the Company’s Form 10-K for the fiscal year ended August 31, 2019, the future minimum lease payments of non-cancelable operating leases prior to the adoption of ASU 2016-02 were as follows (in thousands):
Fiscal Year Ending August 31, | Amount
2020 | $ | 118,312 |
2021 | 102,915 |
2022 | 84,729 |
2023 | 63,206 |
2024 | 51,091 |
Thereafter | 182,932 |
Total minimum lease payments | $ | 603,185 |
Total operating lease expense prior to the adoption of ASU 2016-02 was approximately $125.4 million and $130.2 million for fiscal years 2019 and 2018, respectively.
Leases | Leases Effective September 1, 2019, the Company adopted Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) using the modified retrospective approach and also elected to apply the package of practical expedients, which among other things, allows entities to maintain the historical lease classification for existing leases. The Company has lease agreements that contain both lease and non-lease components. For lease agreements entered into or reassessed after the adoption of ASU 2016-02, the Company has elected the practical expedient to combine lease and non-lease components for building and real estate leases. Upon adoption of ASU 2016-02, the Company recorded $414.6 million and $437.5 million of right-of-use assets and lease liabilities, respectively, related to its existing operating lease portfolio. The accounting for the Company's finance leases remained substantially unchanged and balances were not significant on the adoption date. The adoption of this standard did not have a material impact on the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. The following table sets forth the amount of lease assets and lease liabilities included on the Company's Consolidated Balance Sheets, as of the period indicated (in thousands):
|  | Financial Statement Line Item |  | August 31, 2020
Assets |  |  |  |
Operating lease assets (1) |  | Operating lease right-of-use assets |  | $ | 362,847 |
Finance lease assets (2) |  | Property, plant and equipment, net |  | 160,015 |
Total lease assets |  |  |  | $ | 522,862 |
Liabilities |  |  |  |
Current |  |  |  |
Operating lease liabilities |  | Current operating lease liabilities |  | $ | 110,723 |
Finance lease liabilities |  | Accrued expenses |  | 7,465 |
Non-current |  |  |  |  |
Operating lease liabilities |  | Non-current operating lease liabilities |  | 302,035 |
Finance lease liabilities |  | Other liabilities |  | 160,747 |
Total lease liabilities |  |  |  | $ | 580,970 |
(1) | Net of accumulated amortization of $96.2 million.
(2) | Net of accumulated amortization of $12.8 million.
The following table is a summary of expenses related to leases included on the Company's Consolidated Statements of Operations, for the periods indicated (in thousands):
| Fiscal Year Ended August 31,
| 2020
Operating lease cost | $ | 114,290 |
Finance lease cost |
Amortization of leased assets | 5,470 |
Interest on lease liabilities | 4,950 |
Other | 15,038 |
Net lease cost(1) | $ | 139,748 |
(1) | Lease costs are primarily recognized in cost of revenue.
The following table is a summary of the weighted-average remaining lease terms and weighted-average discount rates of the Company's leases, as of the period indicated:
| August 31, 2020
| Weighted-average remaining lease term |  | Weighted-average discount rate
Operating leases | 5.4 years |  | 3.18 | %
Finance leases | 5.7 years |  | 4.28 | %
The following table sets forth other supplemental information related to the Company's lease portfolio (in thousands):
| Fiscal Year Ended August 31,
| 2020
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows for operating leases(1) | $ | 112,267 |
Operating cash flows for finance leases(1) | 4,950 |
Financing activities for finance leases(2) | 6,242 |
Non-cash right-of-use assets obtained in exchange for new lease liabilities: |
Operating leases | 91,350 |
Finance leases | 111,591 |
(1) | Included in accounts payable, accrued expenses and other liabilities in Operating Activities of the Company's Consolidated Statements of Cash Flows.
(2) | Included in payments toward debt agreements in Financing Activities of the Company's Consolidated Statements of Cash Flows.
The future minimum lease payments under operating and finance leases as of August 31, 2020 were as follows (in thousands):
Fiscal Year Ending August 31, | Operating Leases(1) |  | Finance Leases |  | Total
2021 | $ | 121,196 |  |  | $ | 12,383 |  |  | $ | 133,579 |
2022 | 89,143 |  |  | 12,864 |  |  | 102,007 |
2023 | 67,952 |  |  | 12,363 |  |  | 80,315 |
2024 | 56,153 |  |  | 12,505 |  |  | 68,658 |
2025 | 36,924 |  |  | 43,185 |  |  | 80,109 |
Thereafter | 85,799 |  |  | 101,111 |  |  | 186,910 |
Total minimum lease payments | $ | 457,167 |  |  | $ | 194,411 |  |  | $ | 651,578 |
Less: Interest | (44,409 | ) |  | (26,199 | ) |  | (70,608 | )
Present value of lease liabilities | $ | 412,758 |  |  | $ | 168,212 |  |  | $ | 580,970 |
(1) | Excludes $137.8 million of payments related to leases signed but not yet commenced. Additionally, certain leases signed but not yet commenced contain residual value guarantees and purchase options not deemed probable.
As disclosed in the Company’s Form 10-K for the fiscal year ended August 31, 2019, the future minimum lease payments of non-cancelable operating leases prior to the adoption of ASU 2016-02 were as follows (in thousands):
Fiscal Year Ending August 31, | Amount
2020 | $ | 118,312 |
2021 | 102,915 |
2022 | 84,729 |
2023 | 63,206 |
2024 | 51,091 |
Thereafter | 182,932 |
Total minimum lease payments | $ | 603,185 |
Total operating lease expense prior to the adoption of ASU 2016-02 was approximately $125.4 million and $130.2 million for fiscal years 2019 and 2018, respectively.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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