v3.26.3
Leases
 12 Months Ended
Aug. 31, 2026
Leases [Abstract]  
Leases 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 (i) the right to obtain substantially all economic benefits associated with an identified asset and (ii) the right to direct how and for what purpose the identified asset is used. Certain service agreements may 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.

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 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.

Right of use assets and liabilities for operating and finance leases are recognized under ASC Topic 842 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 Consolidated Statements of Operations as of August 31, 2026, 2025 and 2024, are as follows:
202620252024
(Dollars in thousands)
Operating lease expense$97,314 $95,551 $84,826 
Finance lease expense:
Amortization of assets15,524 12,831 9,506 
Interest on lease liabilities2,371 2,256 1,964 
Short-term lease expense26,163 30,078 25,753 
Variable lease (income) expense(21)50 833 
Total net lease expense*$141,351 $140,766 $122,882 
*Income related to sublease activity is not material and has been excluded from the table above.
Supplemental balance sheet information related to operating and finance leases as of August 31, 2026 and 2025, is as follows:
Balance Sheet Location20262025
(Dollars in thousands)
Operating leases
Assets
Operating lease right of use assetsOther assets$245,910 $238,718 
Liabilities
Current operating lease liabilitiesAccrued expenses$68,378 $70,801 
Long-term operating lease liabilitiesOther liabilities169,109 170,604 
Total operating lease liabilities$237,487 $241,405 
Finance leases
Assets
Finance lease assetsProperty, plant and equipment$65,328 $71,773 
Liabilities
Current finance lease liabilitiesCurrent portion of long-term debt$12,072 $10,447 
Long-term finance lease liabilitiesLong-term debt39,773 44,751 
Total finance lease liabilities$51,845 $55,198 

Information related to the lease term and discount rate for operating and finance leases as of August 31, 2026 and 2025, is as follows:
20262025
Weighted average remaining lease term (in years)
Operating leases4.84.8
Finance leases6.27.1
Weighted average discount rate
Operating leases4.42 %4.19 %
Finance leases4.75 %4.24 %

Supplemental cash flow and other information related to operating and finance leases as of August 31, 2026, 2025 and 2024, is as follows:
202620252024
(Dollars in thousands)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases$92,116 $85,976 $78,614 
Operating cash flows from finance leases2,371 2,256 1,964 
Financing cash flows from finance leases12,111 9,772 7,716 
Supplemental noncash information:
Right of use assets obtained in exchange for lease liabilities$76,249 $89,158 $73,183 
Right of use asset modifications179 25,475 12,277 
Maturities of lease liabilities by fiscal year as of August 31, 2026, are as follows:
August 31, 2026
Finance LeasesOperating Leases
(Dollars in thousands)
2027$14,550 $79,261 
202812,280 62,610 
202910,119 46,298 
20307,932 28,972 
20314,654 12,264 
Thereafter10,771 21,829 
Total maturities of lease liabilities60,306 251,234 
Less amounts representing interest8,461 13,747 
Present value of future minimum lease payments51,845 237,487 
Less current obligations12,072 68,378 
Long-term obligations$39,773 $169,109 
Leases 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 (i) the right to obtain substantially all economic benefits associated with an identified asset and (ii) the right to direct how and for what purpose the identified asset is used. Certain service agreements may 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.

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 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.

Right of use assets and liabilities for operating and finance leases are recognized under ASC Topic 842 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 Consolidated Statements of Operations as of August 31, 2026, 2025 and 2024, are as follows:
202620252024
(Dollars in thousands)
Operating lease expense$97,314 $95,551 $84,826 
Finance lease expense:
Amortization of assets15,524 12,831 9,506 
Interest on lease liabilities2,371 2,256 1,964 
Short-term lease expense26,163 30,078 25,753 
Variable lease (income) expense(21)50 833 
Total net lease expense*$141,351 $140,766 $122,882 
*Income related to sublease activity is not material and has been excluded from the table above.
Supplemental balance sheet information related to operating and finance leases as of August 31, 2026 and 2025, is as follows:
Balance Sheet Location20262025
(Dollars in thousands)
Operating leases
Assets
Operating lease right of use assetsOther assets$245,910 $238,718 
Liabilities
Current operating lease liabilitiesAccrued expenses$68,378 $70,801 
Long-term operating lease liabilitiesOther liabilities169,109 170,604 
Total operating lease liabilities$237,487 $241,405 
Finance leases
Assets
Finance lease assetsProperty, plant and equipment$65,328 $71,773 
Liabilities
Current finance lease liabilitiesCurrent portion of long-term debt$12,072 $10,447 
Long-term finance lease liabilitiesLong-term debt39,773 44,751 
Total finance lease liabilities$51,845 $55,198 

Information related to the lease term and discount rate for operating and finance leases as of August 31, 2026 and 2025, is as follows:
20262025
Weighted average remaining lease term (in years)
Operating leases4.84.8
Finance leases6.27.1
Weighted average discount rate
Operating leases4.42 %4.19 %
Finance leases4.75 %4.24 %

Supplemental cash flow and other information related to operating and finance leases as of August 31, 2026, 2025 and 2024, is as follows:
202620252024
(Dollars in thousands)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases$92,116 $85,976 $78,614 
Operating cash flows from finance leases2,371 2,256 1,964 
Financing cash flows from finance leases12,111 9,772 7,716 
Supplemental noncash information:
Right of use assets obtained in exchange for lease liabilities$76,249 $89,158 $73,183 
Right of use asset modifications179 25,475 12,277 
Maturities of lease liabilities by fiscal year as of August 31, 2026, are as follows:
August 31, 2026
Finance LeasesOperating Leases
(Dollars in thousands)
2027$14,550 $79,261 
202812,280 62,610 
202910,119 46,298 
20307,932 28,972 
20314,654 12,264 
Thereafter10,771 21,829 
Total maturities of lease liabilities60,306 251,234 
Less amounts representing interest8,461 13,747 
Present value of future minimum lease payments51,845 237,487 
Less current obligations12,072 68,378 
Long-term obligations$39,773 $169,109