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Leases | 9 Months Ended
--- | ---
Feb. 29, 2024
Leases [Abstract] |
Leases | Leases The Company enters into leases for equipment, office space and land. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company presents operating and finance right of use assets and liabilities separately on the balance sheet as their own captions, with the liabilities split between current and long-term, respectively. Components of lease expense were as follows (in thousands):
| Three Months Ended |  |  | Nine Months Ended
| February 29, 2024 |  | February 28, 2023 |  |  | February 29, 2024 |  | February 28, 2023
Operating lease cost: |  |  |  |  |  |  |  |
Operating lease expense | $ | 5,203 |  | $ | 82 |  |  | $ | 8,174 |  | $ | 246
Short-term lease expense | 12 |  | 118 |  |  | 52 |  | 341
Total operating lease cost | 5,215 |  | 200 |  |  | 8,226 |  | 587
Finance lease expense: |  |  |  |  |  |  |  |
Amortization of right-of-use assets(1) | 18,350 |  | 1,017 |  |  | 34,840 |  | 2,051
Interest on lease liabilities | 3,253 |  | 224 |  |  | 5,994 |  | 516
Total finance lease cost | 21,603 |  | 1,241 |  |  | 40,834 |  | 2,567
Variable lease cost | 48 |  | — |  |  | 125 |  | —
Sublease Income | (23) |  | (23) |  |  | (70) |  | (81)
Total net lease cost | $ | 26,843 |  | $ | 1,418 |  |  | $ | 49,115 |  | $ | 3,073
(1) Amortization of right-of-use assets is included within cost of revenues and selling, general and administrative expense in the condensed consolidated statements of operations. The following table represents the Company’s future minimum lease payments as of February 29, 2024:
| Operating Leases |  | Finance Leases |  | Total
Remainder of FY24 | $ | 4,574 |  |  | $ | 24,119 |  | $ | 28,693 |
FY25 | 18,833 |  |  | 96,099 |  | 114,932 |
FY26 | 19,514 |  |  | 45,220 |  | 64,734 |
FY27 | 19,868 |  |  | 14 |  | 19,882 |
FY28 | 20,290 |  |  | 1 |  | 20,291 |
Thereafter | 16,029 |  |  | — |  | 16,029 |
Total lease payments | 99,108 |  |  | 165,453 |  | 264,561 |
Less: imputed interest | (16,825) |  |  | (15,212) |  | (32,037) |
Total lease liabilities | 82,283 |  | 150,241 |  | 232,524 |
Less: Current portion of lease liability | (13,023) |  |  | (86,438) |  | (99,461) |
Long-term portion of lease liability | $ | 69,260 |  |  | $ | 63,803 |  | $ | 133,063 |
Supplemental cash flow and other information related to leases is as follows:
| Nine Months Ended
| February 29, 2024 |  | February 28, 2023
Weighted-average years remaining (in years): |  |  |
Finance leases | 2.5 years |  | 28.6 years
Operating leases | 5.3 years |  | 3.9 years
Weighted-average discount rate: |  |  |
Finance leases | 10.7 | % |  | 8.0 | %
Operating leases | 7.6 | % |  | 12.5 | %
The Company has entered into leases which are executed but not yet commenced with total minimum payments of approximately $120.7 million. The payments are for various leases with terms ranging from 2 years to 6.7 years.
Leases | Leases The Company enters into leases for equipment, office space and land. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company presents operating and finance right of use assets and liabilities separately on the balance sheet as their own captions, with the liabilities split between current and long-term, respectively. Components of lease expense were as follows (in thousands):
| Three Months Ended |  |  | Nine Months Ended
| February 29, 2024 |  | February 28, 2023 |  |  | February 29, 2024 |  | February 28, 2023
Operating lease cost: |  |  |  |  |  |  |  |
Operating lease expense | $ | 5,203 |  | $ | 82 |  |  | $ | 8,174 |  | $ | 246
Short-term lease expense | 12 |  | 118 |  |  | 52 |  | 341
Total operating lease cost | 5,215 |  | 200 |  |  | 8,226 |  | 587
Finance lease expense: |  |  |  |  |  |  |  |
Amortization of right-of-use assets(1) | 18,350 |  | 1,017 |  |  | 34,840 |  | 2,051
Interest on lease liabilities | 3,253 |  | 224 |  |  | 5,994 |  | 516
Total finance lease cost | 21,603 |  | 1,241 |  |  | 40,834 |  | 2,567
Variable lease cost | 48 |  | — |  |  | 125 |  | —
Sublease Income | (23) |  | (23) |  |  | (70) |  | (81)
Total net lease cost | $ | 26,843 |  | $ | 1,418 |  |  | $ | 49,115 |  | $ | 3,073
(1) Amortization of right-of-use assets is included within cost of revenues and selling, general and administrative expense in the condensed consolidated statements of operations. The following table represents the Company’s future minimum lease payments as of February 29, 2024:
| Operating Leases |  | Finance Leases |  | Total
Remainder of FY24 | $ | 4,574 |  |  | $ | 24,119 |  | $ | 28,693 |
FY25 | 18,833 |  |  | 96,099 |  | 114,932 |
FY26 | 19,514 |  |  | 45,220 |  | 64,734 |
FY27 | 19,868 |  |  | 14 |  | 19,882 |
FY28 | 20,290 |  |  | 1 |  | 20,291 |
Thereafter | 16,029 |  |  | — |  | 16,029 |
Total lease payments | 99,108 |  |  | 165,453 |  | 264,561 |
Less: imputed interest | (16,825) |  |  | (15,212) |  | (32,037) |
Total lease liabilities | 82,283 |  | 150,241 |  | 232,524 |
Less: Current portion of lease liability | (13,023) |  |  | (86,438) |  | (99,461) |
Long-term portion of lease liability | $ | 69,260 |  |  | $ | 63,803 |  | $ | 133,063 |
Supplemental cash flow and other information related to leases is as follows:
| Nine Months Ended
| February 29, 2024 |  | February 28, 2023
Weighted-average years remaining (in years): |  |  |
Finance leases | 2.5 years |  | 28.6 years
Operating leases | 5.3 years |  | 3.9 years
Weighted-average discount rate: |  |  |
Finance leases | 10.7 | % |  | 8.0 | %
Operating leases | 7.6 | % |  | 12.5 | %
The Company has entered into leases which are executed but not yet commenced with total minimum payments of approximately $120.7 million. The payments are for various leases with terms ranging from 2 years to 6.7 years.

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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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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