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Leases (Notes) | 9 Months Ended
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May 31, 2021
Leases [Abstract] |
Leases of Lessee Disclosure [Text Block] | Leases We assess arrangements at inception to determine whether they contain a lease. An arrangement is considered to contain a lease if it conveys the right to control the use of an asset for a period of time in exchange for consideration. The right to control the use of an asset must include both (a) the right to obtain substantially all economic benefits associated with an identified asset and (b) the right to direct how and for what purpose the identified asset is used. Certain arrangements provide us with the right to use an identified asset; however, most of these arrangements are not considered to represent a lease, as we do not control how and for what purpose the identified asset is used. For example, our supply agreements, warehousing and distribution services agreements, and transportation services agreements generally do not contain leases. We lease property, plant and equipment used in our operations primarily under operating lease agreements and, to a lesser extent, under finance lease agreements. Our operating leases are primarily for railcars, equipment, vehicles and office space, many of which contain renewal options and escalation clauses. Renewal options are included as part of the right of use asset and liability when it is reasonably certain that we will exercise the renewal option; however, renewal options are generally not included as we are not reasonably certain to exercise such options. Operating lease right of use assets and liabilities for operating leases are recognized at the lease commencement date for leases in excess of 12 months based on the present value of lease payments over the lease term. For measurement and classification of lease agreements, lease and nonlease components are grouped into a single lease component for all asset classes. Variable lease payments are excluded from measurement of right of use assets and liabilities and generally include payments for nonlease components such as maintenance costs, payments for leased assets beyond their noncancelable lease term and payments for other nonlease components such as sales tax. The discount rate used to calculate present value is our collateralized incremental borrowing rate or, if available, the rate implicit in the lease. The incremental borrowing rate is determined for each lease based primarily on its lease term. Certain lease arrangements include rental payments adjusted annually based on changes in an inflation index. Our lease arrangements generally do not contain residual value guarantees or material restrictive covenants. Lease expense is recognized on a straight-line basis over the lease term. The components of lease expense recognized in our Condensed Consolidated Statements of Operations are as follows:
| Three Months Ended May 31, |  | Nine Months Ended May 31,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (Dollars in thousands)
Operating lease expense | $ | 18,534 |  |  | $ | 17,057 |  |  | $ | 54,508 |  |  | $ | 53,155 |
Finance lease expense: |  |  |  |  |  |  |
Amortization of assets | 1,974 |  |  | 1,908 |  |  | 5,919 |  |  | 5,170 |
Interest on lease liabilities | 218 |  |  | 257 |  |  | 694 |  |  | 742 |
Short-term lease expense | 3,970 |  |  | 3,108 |  |  | 12,394 |  |  | 12,768 |
Variable lease expense | 668 |  |  | 1,176 |  |  | 2,209 |  |  | 2,089 |
Total net lease expense* | $ | 25,364 |  |  | $ | 23,506 |  |  | $ | 75,724 |  |  | $ | 73,924 |
*Income related to sub-lease activity is not material and has been excluded from the table above. Supplemental balance sheet information related to operating and finance leases is as follows:
| Balance Sheet Location |  | May 31, 2021 |  | August 31, 2020 |  |  |  |  |  |
|  |  | (Dollars in thousands)
Operating leases |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |
Operating lease right of use assets | Other assets |  | $ | 262,737 |  |  | $ | 257,834 |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Current operating lease liabilities | Accrued expenses |  | 58,767 |  |  | 57,200 |  |  |  |  |  |  |
Long-term operating lease liabilities | Other liabilities |  | 207,513 |  |  | 203,691 |  |  |  |  |  |  |
Total operating lease liabilities |  | $ | 266,280 |  |  | $ | 260,891 |  |  |  |  |  |  |
Finance leases |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |
Finance lease assets | Property, plant and equipment |  | $ | 39,393 |  |  | $ | 44,860 |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Current finance lease liabilities | Current portion of long-term debt |  | 7,152 |  |  | 7,993 |  |  |  |  |  |  |
Long-term finance lease liabilities | Long-term debt |  | 19,307 |  |  | 23,467 |  |  |  |  |  |  |
Total finance lease liabilities |  | $ | 26,459 |  |  | $ | 31,460 |  |  |  |  |  |  |
Weighted average remaining lease term (in years) |  |  |  |  |  |  |  |  |  |
Operating leases |  | 7.9 |  | 8.3 |  |  |  |  |  |
Finance leases |  | 5.7 |  | 6.0 |  |  |  |  |  |
Weighted average discount rate |  |  |  |  |  |  |  |  |  |
Operating leases |  | 2.99 | % |  | 3.11 | % |  |  |  |  |  |
Finance leases |  | 3.34 | % |  | 3.33 | % |  |  |  |  |  |
Supplemental cash flow and other information related to operating and finance leases are as follows:
| Nine Months Ended May 31,
| 2021 |  | 2020
| (Dollars in thousands)
Cash paid for amounts included in measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 56,448 |  |  | $ | 45,718 |
Operating cash flows from finance leases | 694 |  |  | 742 |
Financing cash flows from finance leases | 6,426 |  |  | 5,239 |
Supplemental noncash information: |  |  |
Right of use assets obtained in exchange for lease liabilities | 37,284 |  |  | 32,567 |
Right of use asset modifications | 23,886 |  |  | 6,507 |
Maturities of lease liabilities as of May 31, 2021, were as follows:
| May 31, 2021
| Finance Leases |  | Operating Leases
| (Dollars in thousands)
Remainder of fiscal 2021 | $ | 2,004 |  |  | $ | 18,002 |
Fiscal 2022 | 7,787 |  |  | 65,469 |
Fiscal 2023 | 6,206 |  |  | 51,946 |
Fiscal 2024 | 3,487 |  |  | 41,945 |
Fiscal 2025 | 2,078 |  |  | 31,211 |
After fiscal 2025 | 8,071 |  |  | 108,601 |
Total maturities of lease liabilities | 29,633 |  |  | 317,174 |
Less amounts representing interest | 3,174 |  |  | 50,894 |
Present value of future minimum lease payments | 26,459 |  |  | 266,280 |
Less current lease liabilities | 7,152 |  |  | 58,767 |
Long-term lease liabilities | $ | 19,307 |  |  | $ | 207,513 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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