XML 49 R18.htm IDEA: XBRL DOCUMENT
v3.20.1

Leases | 6 Months Ended
--- | ---
Feb. 29, 2020
Leases [Abstract] |
Leases | Leases Our leases primarily include operating leases for office and manufacturing space and equipment. Our finance leases are primarily for real estate. For any lease with an initial term in excess of 12 months, the related lease assets and liabilities are recognized on the Condensed Consolidated Balance Sheets as either operating or finance leases at the inception of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and we have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets; we recognize lease expense for these leases on a straight-line basis over the lease term. When the terms of multiple lease agreements are materially consistent, we have elected the portfolio approach for our asset and liability calculations. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We generally use a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. Our assumed lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Some of our real estate operating leases require payment of real estate taxes, common area maintenance, and insurance. In addition, certain of our leases are subject to annual changes in the consumer price index. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. Fixed payments may contain predetermined fixed rent escalations. For our operating leases, we recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. The following table details the supplemental balance sheet information related to our leases:
(in thousands) | Classification | February 29, 2020
Assets |  |
Operating leases | Operating lease assets | $ | 30,460 |
Finance leases | Other assets | 4,686 |
Total lease assets |  | $ | 35,146 |
Liabilities |  |
Current: Operating leases | Accrued expenses: Other | $ | 2,500 |
Current: Finance leases | Accrued expenses: Other | 522 |
Non-Current: Operating leases | Operating lease liabilities | 27,882 |
Non-Current: Finance leases | Non-current liabilities: Other | 5,141 |
Total lease liabilities |  | $ | 36,045 |
The following table details the operating lease cost incurred:
|  | Three Months Ended |  | Six Months Ended
(in thousands) | Classification | February 29, 2020 |  | February 29, 2020
Operating lease expense(1) | Costs of goods sold and SG&A |  | $ | 1,773 |  |  | $ | 3,536 |
Finance lease cost: |  |  |  |
Depreciation of lease assets | Costs of goods sold and SG&A |  | 144 |  |  | 187 |
Interest on lease liabilities | Interest expense |  | 88 |  |  | 119 |
Total lease cost |  | $ | 2,005 |  |  | $ | 3,842 |
(1) Operating lease expense includes short-term leases and variable lease payments, which are immaterial. Our future lease commitments for future fiscal years as of February 29,2020 included the following related party and non-related party leases:
| Operating Leases |  |  |  |  |  | Finance Leases
(in thousands) | Related Party Amount |  | Non-Related Party Amount |  | Total |  | Non-Related Party Amount
Fiscal 2020 | $ | 450 |  |  | $ | 1,724 |  |  | $ | 2,174 |  |  | $ | 426 |
Fiscal 2021 | 900 |  |  | 3,299 |  |  | 4,199 |  |  | 855 |
Fiscal 2022 | 900 |  |  | 2,983 |  |  | 3,883 |  |  | 851 |
Fiscal 2023 | 1,500 |  |  | 2,726 |  |  | 4,226 |  |  | 842 |
Fiscal 2024 | 1,800 |  |  | 2,556 |  |  | 4,356 |  |  | 845 |
Thereafter | 9,600 |  |  | 11,893 |  |  | 21,493 |  |  | 3,443 |
Total future undiscounted lease payments | 15,150 |  |  | 25,181 |  |  | 40,331 |  |  | 7,262 |
Less: Interest | 4,210 |  |  | 5,739 |  |  | 9,949 |  |  | 1,599 |
Total reported lease liabilities | $ | 10,940 |  |  | $ | 19,442 |  |  | $ | 30,382 |  |  | $ | 5,663 |
Our future minimum lease payments for future fiscal years as determined prior to the adoption of ASC 842, Leases, and as disclosed in our Annual Report on Form 10-K for the fiscal year ended August 31, 2019, included the following related party and non-related party leases:
| Operating Leases |  |  |  |
(in thousands) | Related Party Amount |  | Non-Related Party Amount |  | Total
Fiscal 2020 | $ | 2,864 |  |  | $ | 1,236 |  |  | $ | 4,100 |
Fiscal 2021 | 2,863 |  |  | 1,068 |  |  | 3,931 |
Fiscal 2022 | 2,863 |  |  | 759 |  |  | 3,622 |
Fiscal 2023 | 3,597 |  |  | 530 |  |  | 4,127 |
Fiscal 2024 | 3,963 |  |  | 361 |  |  | 4,324 |
Thereafter | 25,064 |  |  | 1,359 |  |  | 26,423 |
Total future lease commitments | $ | 41,214 |  |  | $ | 5,313 |  |  | $ | 46,527 |
The following table details additional information related to our leases:
| Six Months Ended
(in thousands) | February 29, 2020
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases | $ | 1,168 |
Operating cash flows from finance leases | 119 |
Financing cash flows from finance leases | 104 |
Leased assets obtained in exchange for lease liabilities: |
Operating leases | 1,801 |
Finance leases(1) | 5,664 |
| February 29, 2020
Weighted average remaining lease term (in years): |
Operating leases | 9.2
Finance leases | 8.2
Weighted average discount rate: |
Operating leases | 6.2 | %
Finance leases | 6.2 | %
(1) Represents the lease liability added. Lease assets are offset by a $1.0 million unfavorable lease liability created by the acquisition of Newmar.
Leases | Leases Our leases primarily include operating leases for office and manufacturing space and equipment. Our finance leases are primarily for real estate. For any lease with an initial term in excess of 12 months, the related lease assets and liabilities are recognized on the Condensed Consolidated Balance Sheets as either operating or finance leases at the inception of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and we have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets; we recognize lease expense for these leases on a straight-line basis over the lease term. When the terms of multiple lease agreements are materially consistent, we have elected the portfolio approach for our asset and liability calculations. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We generally use a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. Our assumed lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Some of our real estate operating leases require payment of real estate taxes, common area maintenance, and insurance. In addition, certain of our leases are subject to annual changes in the consumer price index. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. Fixed payments may contain predetermined fixed rent escalations. For our operating leases, we recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. The following table details the supplemental balance sheet information related to our leases:
(in thousands) | Classification | February 29, 2020
Assets |  |
Operating leases | Operating lease assets | $ | 30,460 |
Finance leases | Other assets | 4,686 |
Total lease assets |  | $ | 35,146 |
Liabilities |  |
Current: Operating leases | Accrued expenses: Other | $ | 2,500 |
Current: Finance leases | Accrued expenses: Other | 522 |
Non-Current: Operating leases | Operating lease liabilities | 27,882 |
Non-Current: Finance leases | Non-current liabilities: Other | 5,141 |
Total lease liabilities |  | $ | 36,045 |
The following table details the operating lease cost incurred:
|  | Three Months Ended |  | Six Months Ended
(in thousands) | Classification | February 29, 2020 |  | February 29, 2020
Operating lease expense(1) | Costs of goods sold and SG&A |  | $ | 1,773 |  |  | $ | 3,536 |
Finance lease cost: |  |  |  |
Depreciation of lease assets | Costs of goods sold and SG&A |  | 144 |  |  | 187 |
Interest on lease liabilities | Interest expense |  | 88 |  |  | 119 |
Total lease cost |  | $ | 2,005 |  |  | $ | 3,842 |
(1) Operating lease expense includes short-term leases and variable lease payments, which are immaterial. Our future lease commitments for future fiscal years as of February 29,2020 included the following related party and non-related party leases:
| Operating Leases |  |  |  |  |  | Finance Leases
(in thousands) | Related Party Amount |  | Non-Related Party Amount |  | Total |  | Non-Related Party Amount
Fiscal 2020 | $ | 450 |  |  | $ | 1,724 |  |  | $ | 2,174 |  |  | $ | 426 |
Fiscal 2021 | 900 |  |  | 3,299 |  |  | 4,199 |  |  | 855 |
Fiscal 2022 | 900 |  |  | 2,983 |  |  | 3,883 |  |  | 851 |
Fiscal 2023 | 1,500 |  |  | 2,726 |  |  | 4,226 |  |  | 842 |
Fiscal 2024 | 1,800 |  |  | 2,556 |  |  | 4,356 |  |  | 845 |
Thereafter | 9,600 |  |  | 11,893 |  |  | 21,493 |  |  | 3,443 |
Total future undiscounted lease payments | 15,150 |  |  | 25,181 |  |  | 40,331 |  |  | 7,262 |
Less: Interest | 4,210 |  |  | 5,739 |  |  | 9,949 |  |  | 1,599 |
Total reported lease liabilities | $ | 10,940 |  |  | $ | 19,442 |  |  | $ | 30,382 |  |  | $ | 5,663 |
Our future minimum lease payments for future fiscal years as determined prior to the adoption of ASC 842, Leases, and as disclosed in our Annual Report on Form 10-K for the fiscal year ended August 31, 2019, included the following related party and non-related party leases:
| Operating Leases |  |  |  |
(in thousands) | Related Party Amount |  | Non-Related Party Amount |  | Total
Fiscal 2020 | $ | 2,864 |  |  | $ | 1,236 |  |  | $ | 4,100 |
Fiscal 2021 | 2,863 |  |  | 1,068 |  |  | 3,931 |
Fiscal 2022 | 2,863 |  |  | 759 |  |  | 3,622 |
Fiscal 2023 | 3,597 |  |  | 530 |  |  | 4,127 |
Fiscal 2024 | 3,963 |  |  | 361 |  |  | 4,324 |
Thereafter | 25,064 |  |  | 1,359 |  |  | 26,423 |
Total future lease commitments | $ | 41,214 |  |  | $ | 5,313 |  |  | $ | 46,527 |
The following table details additional information related to our leases:
| Six Months Ended
(in thousands) | February 29, 2020
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases | $ | 1,168 |
Operating cash flows from finance leases | 119 |
Financing cash flows from finance leases | 104 |
Leased assets obtained in exchange for lease liabilities: |
Operating leases | 1,801 |
Finance leases(1) | 5,664 |
| February 29, 2020
Weighted average remaining lease term (in years): |
Operating leases | 9.2
Finance leases | 8.2
Weighted average discount rate: |
Operating leases | 6.2 | %
Finance leases | 6.2 | %
(1) Represents the lease liability added. Lease assets are offset by a $1.0 million unfavorable lease liability created by the acquisition of Newmar.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration