v3.26.3
Leases
 12 Months Ended
Aug. 31, 2026
Leases [Abstract]  
Leases Leases
The Company leases real estate for its regional sales offices, a research and development facility, and offices located at its international subsidiaries and branch locations. The Company also leases automobile fleets in the Americas and EIMEA segments. In addition, the Company has identified warehouse leases within certain third-party distribution center service contracts and a lease of a blending room within a third-party manufacturing contract. All other leases are insignificant to the Company’s consolidated financial statements.
Right-of-use assets and lease liabilities consisted of the following (in thousands):
August 31,
2026		August 31,
2025
Assets:
Operating lease right-of-use assets$14,505 $10,385 
Finance lease right-of-use asset2,763 3,149 
Total right-of-use assets$17,268 $13,534 
Liabilities:
Current operating lease liabilities(1)
$3,405 $2,282 
Long-term operating lease liabilities11,101 8,423 
Total operating lease liabilities$14,506 $10,705 
(1)Current operating lease liabilities are classified in accrued liabilities on the Company’s consolidated balance sheets.
The Company’s maturities of its operating lease liabilities, including early termination and renewal options that management is reasonably certain to exercise, are as follows as of August 31, 2026 (in thousands):
Operating
Leases
Fiscal year 2027$3,513 
Fiscal year 20283,416 
Fiscal year 20292,163 
Fiscal year 20301,744 
Fiscal year 20311,529 
Thereafter5,070 
Total undiscounted future cash flows$17,435 
Less: Interest(2,929)
Present value of lease liabilities$14,506 
The Company recorded $3.0 million and $2.6 million in lease expense during the fiscal years ended August 31, 2026 and 2025, respectively. This lease expense was included in selling, general and administrative expenses. The Company recorded $1.4 million and $1.1 million of lease expense classified within cost of products sold for the fiscal years ended August 31, 2026, and 2025, respectively. During the fiscal year ended August 31, 2026 and 2025, the Company paid cash of $3.6 million and $3.0 million, respectively, related to lease liabilities. Variable lease expense under the Company’s lease agreements was not significant for both the fiscal years ended August 31, 2026 and 2025. As of August 31, 2026, the weighted-average remaining lease term was 6.4 years and the weighted-average discount rate was 5.3% for the Company’s operating leases. As of August 31, 2025, the weighted-average remaining lease term was 5.0 years and the weighted-average discount rate was 5.0% for the Company’s operating leases. As of August 31, 2026, the Company did not have material additional operating or financing leases that have not yet commenced.
The Company had no significant short-term leases as of August 31, 2026. The Company obtained additional right-of-use assets of $8.0 million in exchange for lease obligations related to new leases and lease modifications during fiscal year 2026. Residual value guarantees, restrictions, covenants, sublease income, net gains or losses from sale and leaseback transactions, and transactions with related parties associated with leases were also not significant.