We lease certain of our real estate, machinery, equipment, and vehicles under non-cancelable operating lease agreements.

We recognize expenses under our operating lease assets and liabilities at the commencement date based on the present value of lease payments over the lease term. Our leases do not provide an implicit interest rate. We use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Our lease agreements do not require material variable lease payments, residual value guarantees, or restrictive covenants. For operating leases, we recognize expense on a straight-line basis over the lease term. We record tenant improvement allowances as an offsetting adjustment included in our calculation of the respective right-of-use asset.

Many of our leases include renewal options that enable us to extend the lease term. The execution of those renewal options is at our sole discretion and are reflected in the lease term when they are reasonably certain to be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term.

The amounts of assets and liabilities related to our operating and financing leases as of January 31, 2021 were as follows (in thousands):

	Balance Sheet Caption	January 31, 2021
Operating Leases
Right-of-use assets		$	7,273
Accumulated amortization			(2,183	)
Right-of-use assets, net	Other assets	$	5,090

Current liabilities	Accrued expenses and deferred revenue	$	1,319
Non-current liabilities	Other non-current liabilities		3,951
Total operating lease liabilities		$	5,270
Finance Leases
Right-of-use assets		$	40,986
Accumulated depreciation			(3,706	)
Right-of-use assets, net	Property, plant, and equipment, net	$	37,280

Current liabilities	Accrued expenses and deferred revenue		1,073
Non-current liabilities	Finance lease payable, net of current portion		39,060
Total finance lease liabilities		$	40,133

For the three months ended January 31, 2021, we recorded $420,000 of operating lease costs, of which $38,000 related to short-term leases that were not recorded as right-of-use assets. We recorded $525,000 of financing lease amortization and $504,000 of financing lease interest expense for the three months ended January 31, 2021. For the nine months ended January 31, 2021, we recorded $1.3 million of operating lease costs, of which $168,000 related to short-term leases that were not recorded as right-of-use assets. We recorded $1.6 million of financing lease amortization and $1.5 million of financing lease interest expense for the nine months ended January 31, 2021. As of January 31, 2021, our weighted average lease term and weighted average discount rate for our operating leases was 4.3 years and 4.5%, respectively. As of January 31, 2021, our weighted average lease term and weighted average discount rate for our financing leases were 17.7 years and 5.0%, respectively, and consisted primarily of our national logistics facility located in Columbia, Missouri. The depreciable lives of right-of-use assets are limited by the lease term and are amortized on a straight-line basis over the life of the lease.

With the completion of the Separation, we entered into a sublease whereby AOUT subleases from us 59.0% of our national logistics facility under the same terms as the master lease. For the nine months ended January 31, 2021, we have recorded $1.1 million of income related to this sublease agreement, which is recorded in other income/(expense) in our condensed consolidated statements of income/(loss) and comprehensive income/(loss).

Future lease payments for all our operating and finance leases for succeeding fiscal years is as follows (in thousands):

	Operating			Financing			Total
2021	$	413		$	761		$	1,174
2022		1,546			3,056			4,602
2023		1,554			3,071			4,625
2024		1,545			3,125			4,670
2025		326			3,180			3,506
Thereafter		712			48,783			49,495
Total future lease payments		6,096			61,976			68,072
Less amounts representing interest		(826	)		(21,843	)		(22,669	)
Present value of lease payments		5,270			40,133			45,403
Less current maturities of lease liabilities		(1,319	)		(1,073	)		(2,392	)
Long-term maturities of lease liabilities	$	3,951		$	39,060		$	43,011

For the three and nine months ended January 31, 2021, the cash paid for amounts included in the measurement of the liabilities and the operating cash flows was $1.1 million and $3.6 million, respectively.