|12 Months Ended|
May 31, 2020
Note I: Leases
The Company’s lease portfolio consists primarily of operating leases for office space and equipment and has remaining terms from less than one year up to ten years, with contractual terms expiring from 2020 to 2030. Lease contracts may include one or more renewal options that allow the Company to extend the lease term, typically from one year to five years per each renewal option. The exercise of lease options is generally at the discretion of the Company. None of the Company’s leases contain residual value guarantees, substantial restrictions, or covenants.
Supplemental balance sheet information related to the Company’s leases were as follows:
(1) The current portion of operating lease liabilities is reported in the other current liabilities line item on the Company’s Consolidated Balance Sheets.
The components of lease expense were as follows:
Fixed payment lease expense was $38.2 million, $42.9 million, and $39.9 million for fiscal years 2020, 2019, and 2018, respectively.
Supplemental cash flow information related to the Company’s leases were as follows:
Lease incentives received in the form of tenant allowances and free rent was $6.1 million, $3.5 million, and $7.7 million for fiscal years 2020, 2019, and 2018, respectively.
Future lease payments are as follows:
(1)Presented in accordance with legacy GAAP, ASC Topic 840, Leases.
As of May 31, 2020, the Company has entered into two lease agreements that have not yet commenced for terms up to ten years. These leases will require lease payments over their terms of approximately $6.8 million.
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.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef