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v3.22.2

Leases | 3 Months Ended
--- | ---
May 31, 2022
Leases [Abstract] |
Leases | Leases The Company is a lessee under various leases for facilities and equipment. As of May 31, 2022, the Company was the lessee for 153 operating leases with terms of 12 months or more and 12 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. The majority of the Company’s long-term lease expenses are at fixed prices. 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, some of which continue in perpetuity until the lessor or the Company terminates the lease agreement. The Company's short-term lease agreements include expenses incurred hourly, daily, monthly and for other durations for a time period of one year or less. The Company’s future lease commitments as of May 31, 2022 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 assets and lease liabilities in the consolidated balance sheets as of May 31, 2022 and fiscal year end 2022 (in thousands):
Balance Sheet | Classification |  | May 31, 2022 |  | February 28, 2022
Assets |  |  |  |  |
Right-of-use assets | Right-of-use assets |  | $ | 51,909 |  |  | $ | 43,286 |
Liabilities |  |  |  |  |
Operating lease liabilities ― ST | Lease liability - short-term |  | 8,786 |  |  | 7,140 |
Operating lease liabilities ― LT | Lease liability - long-term |  | 41,978 |  |  | 34,965 |
Finance lease liabilities ― ST | Lease liability - short-term |  | 189 |  |  | 178 |
Finance lease liabilities ― LT | Lease liability - long-term |  | 625 |  |  | 645 |
Supplemental information related to the Company's portfolio of operating leases was as follows (in thousands):
| Three Months Ended May 31, |  |
| 2022 |  | 2021 |  |  |  |
Operating cash flows from operating leases included in lease liabilities | $ | 2,419 |  |  | $ | 2,299 |  |  |  |  |
Lease liabilities obtained from new ROU assets - operating | 11,070 |  |  | 12,661 |  |  |  |  |
Operating and financing cash flows from financing leases included in lease liabilities | 52 |  |  | 18 |  |  |  |  |
Lease liabilities obtained from new ROU assets - financing | 38 |  |  | — |  |  |  |  |
| May 31, 2022 |  | February 28, 2022
Weighted-average remaining lease term - operating leases (years) | 7.28 |  | 7.90
Weighted-average discount rate - operating leases | 4.48 | % |  | 4.56 | %
Weighted-average remaining lease term - financing leases (years) | 4.48 |  | 4.73
Weighted-average discount rate - financing leases | 2.99 | % |  | 2.95 | %
The following table outlines the classification of lease expense in the statements of income (in thousands):
| Three Months Ended May 31, |  |
| 2022 |  | 2021 |  |  |  |
Cost of sales | $ | 3,226 |  |  | $ | 2,546 |  |  |  |  |
Selling, general and administrative | 946 |  |  | 1,130 |  |  |  |  |
Total lease expense | $ | 4,172 |  |  | $ | 3,676 |  |  |  |  |
As of May 31, 2022, maturities of the Company's lease liabilities were as follows (in thousands):
Fiscal year: |  | Operating Leases |  | Finance Leases |  | Total
2023 |  | $ | 8,254 |  |  | $ | 158 |  |  | $ | 8,412 |
2024 |  | 10,144 |  |  | 211 |  |  | 10,355 |
2025 |  | 9,155 |  |  | 203 |  |  | 9,358 |
2026 |  | 7,608 |  |  | 139 |  |  | 7,747 |
2027 |  | 6,815 |  |  | 111 |  |  | 6,926 |
Thereafter |  | 17,851 |  |  | 46 |  |  | 17,897 |
Total lease payments |  | 59,827 |  |  | 868 |  |  | 60,695 |
Less imputed interest |  | (9,064) |  |  | (53) |  |  | (9,117) |
Total |  | $ | 50,763 |  |  | $ | 815 |  |  | $ | 51,578 |

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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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