The Company, as lessee, has operating leases primarily for office space, manufacturing facilities, equipment, and vehicles. The Company determines if a contract is or contains a lease at the inception of the contract based on whether the contract conveys the right to control the use of an identified asset over a period of time in exchange for consideration.

The Company elected, for all classes of underlying assets, to not separate lease and non-lease components and instead will treat the lease agreement as a single lease component for all asset classes. The Company additionally elected practical expedients to not reassess whether existing contracts are or contain leases, the classification of any existing leases, accounting for initial direct costs for any existing leases, and hindsight in determining the lease term and in assessing impairment of the right-of-use (“ROU”) asset.

Short-term operating leases, which have an initial expected term of twelve months or less, are not recorded on the condensed consolidated balance sheet. Such fixed lease payments are recognized within the condensed consolidated statement of earnings on a straight-line basis over the lease term. Any variable payments associated with short-term operating leases are recognized within the condensed consolidated statement of earnings as they are incurred. The Company did not recognize any expense for such leases during the three months ended November 30, 2019.

Many of the Company’s leases contain renewal or extension options. The Company includes all renewal or extension periods that it is reasonably certain to exercise at lease commencement within the measurement of the ROU asset and lease liability.

The Company’s lease portfolio consists of operating leases which are included in operating lease ROU assets and operating lease liabilities in the condensed consolidated balance sheet. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. To calculate the present value of future lease payments, the Company uses an incremental borrowing rate that estimates a collateralized rate based on the expected term of the lease.

Lease cost and other information related to the Company’s operating leases are as follows:

($ in thousands)	November 30, 2019
Operating lease cost (cost resulting from lease payments)		1,418
Variable lease cost (cost excluded from lease payments)		100
Total lease cost	$	1,518

Operating cash outflows from operating leases		1,086
Weighted average lease term - operating leases	10.0 years
Weighted average discount rate - operating leases		3.3	%

Supplemental balance sheet information related to operating leases for the first quarter of 2020 is as follows:

($ in thousands)	Classification	November 30, 2019
Operating lease ROU assets	Operating lease right-of-use assets	$	25,764

Operating lease short-term liabilities	Other current liabilities		4,200
Operating lease long-term liabilities	Operating lease liabilities		25,323
Total lease liabilities		$	29,523

The minimum lease payments under operating leases expiring subsequent to November 30, 2019 are as follows:

Fiscal year ending	$ in thousands
2020	$	4,334
2021		5,233
2022		4,909
2023		3,504
2024		3,110
Thereafter		20,516
Total lease payments		41,606
Less: interest		12,083
Present value of lease liabilities	$	29,523

As previously disclosed in our Annual Report on Form 10-K for the year ended August 31, 2019 and under the previous lease accounting standard, future minimum lease payments under operating leases with an initial or remaining term in excess of one year at August 31, 2019 would have been as follows:

Fiscal year ending	$ in thousands
2020	$	6,065
2021		5,266
2022		4,771
2023		3,414
2024		3,107
Thereafter		20,119
Total lease payments	$	42,742