We lease certain of our real estate, machinery, and equipment 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 July 31, 2022 were as follows (in thousands):


	Balance Sheet Caption	July 31, 2022
Operating Leases
Right-of-use assets		$	7,297
Accumulated amortization			(4,010	)
Right-of-use assets, net	Other assets	$	3,287

Current liabilities	Accrued expenses and deferred revenue	$	1,613
Non-current liabilities	Other non-current liabilities		1,925
Total operating lease liabilities		$	3,538
Finance Leases
Right-of-use assets		$	40,986
Accumulated depreciation			(6,858	)
Right-of-use assets, net	Property, plant, and equipment, net	$	34,128

Current liabilities	Accrued expenses and deferred revenue	$	1,186
Non-current liabilities	Finance lease payable, net of current portion		37,323
Total finance lease liabilities		$	38,509

For the three months ended July 31, 2022, we recorded $446,000 of operating lease costs, of which $30,000 related to short-term leases that were not recorded as right-of-use assets. We recorded $523,000 of financing lease amortization and $484,000 of financing lease interest expense for the three months ended July 31, 2022. As of July 31, 2022, our weighted average lease term and weighted average discount rate for our operating leases were 3.0 years and 4.4%, respectively. As of July 31, 2022, our weighted average lease term and weighted average discount rate for our financing leases were 16.3 years and 5.0%, respectively, and consisted primarily of our Missouri distribution facility. 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 spin-off of our outdoor products and accessories business on August 24, 2020, or the Separation, we entered into a sublease whereby American Outdoor Brands, Inc., our former wholly owned subsidiary, or AOUT, subleases from us 59.0% of our Missouri distribution facility under the same terms as the master lease. On July 16, 2022, we entered into an amendment to the sublease agreement, increasing the leased space to 64.7% of the facility under the same terms as the master lease. For the three months ended July 31, 2022, we recorded $544,000 of income related to this sublease agreement, which was recorded in other income in our condensed consolidated statements of income.

The following table represents future expected undiscounted cashflows, based on the sublease agreement with AOUT, to be received on an annual basis for the next five years and thereafter, as of July 31, 2022 (in thousands):


Fiscal	Amount
2023	$	1,541
2024		2,086
2025		2,123
2026		2,160
2027		2,198
Thereafter		28,658
Total future sublease receipts		38,766
Less amounts representing interest		(10,302	)
Present value of sublease receipts	$	28,464

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


	Operating			Financing			Total
2023	$	1,332		$	2,310		$	3,642
2024		1,650			3,125			4,775
2025		324			3,180			3,504
2026		301			3,236			3,537
2027		272			3,292			3,564
Thereafter		125			42,256			42,381
Total future lease payments		4,004			57,399			61,403
Less amounts representing interest		(466	)		(18,890	)		(19,356	)
Present value of lease payments		3,538			38,509			42,047
Less current maturities of lease liabilities		(1,613	)		(1,186	)		(2,799	)
Long-term maturities of lease liabilities	$	1,925		$	37,323		$	39,248

For the three months ended July 31, 2022, the cash paid for amounts included in the measurement of the liabilities and the operating cash flows was $1.1 million.