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v3.23.1

Leases | 12 Months Ended
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Feb. 28, 2023
Leases [Abstract] |
Leases | The Company is a lessee under various leases for facilities and equipment. See Note 1 for a description of the Company's accounting policy for leases. As of February 28, 2023, the Company was the lessee for 153 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 February 28, 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 for fiscal 2023 and 2022 (in thousands):
| Balance Sheet Classification |  | As of February 28,
|  | 2023 |  | 2022
Assets |  |  |  |  |
Right-of-use assets | Right-of-use assets |  | $ | 26,392 |  |  | $ | 13,954 |
Liabilities |  |  |  |  |
Operating lease liabilities ― short-term | Lease liability - short-term |  | $ | 6,119 |  |  | $ | 3,131 |
Operating lease liabilities ― long-term | Lease liability - long-term |  | 19,659 |  |  | 10,798 |
Finance lease liabilities ― short-term | Lease liability - short-term |  | 284 |  |  | 158 |
Finance lease liabilities ― long-term | Lease liability - long-term |  | 1,045 |  |  | 605 |
Supplemental information related to the Company's portfolio of operating leases was as follows (in thousands, except years and percentages):
| 2023 |  | 2022
Operating cash flows from operating leases included in lease liabilities | $ | 5,832 |  |  | $ | 3,965 |
Lease liabilities obtained from new ROU assets - operating | $ | 3,986 |  |  | $ | 491 |
Weighted-average remaining lease term - operating leases | 5.04 years |  | 5.29 years
Weighted-average discount rate - operating leases | 4.31 | % |  | 4.22 | %
Operating and financing cash flows from financing leases included in lease liabilities | $ | 219 |  |  | $ | 104 |
Lease liabilities obtained from new ROU assets - financing | $ | 420 |  |  | $ | 216 |
Weighted-average remaining lease term - financing leases | 4.61 years |  | 4.87 years
Weighted-average discount rate - financing leases | 5.15 | % |  | 2.90 | %
The following table outlines the classification of lease expense related to operating leases from continuing operations in the statements of income for fiscal 2023, 2022, and 2021 (in thousands):
| Year Ended February 28,
| 2023 |  | 2022 |  | 2021
Cost of sales | $ | 12,409 |  |  | $ | 6,837 |  |  | $ | 7,254 |
Selling, general and administrative | 1,858 |  |  | 1,264 |  |  | 1,619 |
Total lease cost | $ | 14,267 |  |  | $ | 8,101 |  |  | $ | 8,873 |
As of February 28, 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 | $ | 7,079 |  |  | $ | 344 |  |  | $ | 7,423 |
2025 | 6,267 |  |  | 344 |  |  | 6,611 |
2026 | 5,392 |  |  | 300 |  |  | 5,692 |
2027 | 4,242 |  |  | 268 |  |  | 4,510 |
2028 | 2,201 |  |  | 195 |  |  | 2,396 |
Thereafter | 3,438 |  |  | 43 |  |  | 3,481 |
Total lease payments | $ | 28,619 |  |  | $ | 1,494 |  |  | $ | 30,113 |
Less imputed interest | (2,841) |  |  | (165) |  |  | (3,006) |
Total | $ | 25,778 |  |  | $ | 1,329 |  |  | $ | 27,107 |
The Company subleases multiple buildings in Columbia, South Carolina to multiple subtenants. The 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 "Other (income) expense." The Company recognized $0.8 million of income from subleases during fiscal year 2023.

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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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