We have leases for manufacturing facilities, warehouses, office facilities, equipment, and vehicles, which are primarily classified and accounted for as operating leases. We have a small portfolio of finance leases, which are not material to our Consolidated Financial Statements. Some leases include one or more options to renew, generally at our sole discretion, with renewal terms that can extend the lease term from one to five years or more. In addition, certain leases contain termination options, where the rights to terminate are held by either us, the lessor, or both parties. These options to extend or terminate a lease are included in the lease terms when it is reasonably certain that we will exercise that option. We have made an accounting policy election not to recognize ROU assets and lease liabilities for leases with a term of twelve months or less, with no purchase option that we are reasonably certain to exercise. ROU assets and lease liabilities are recognized based on the present value of the fixed and in-substance fixed lease payments over the lease term at the commencement date. The ROU assets also include any initial direct costs incurred and lease payments made at or before the commencement date and are reduced by lease incentives. We use our incremental borrowing rate as the discount rate to determine the present value of the lease payments for leases, as our leases do not have readily determinable implicit discount rates. Our incremental borrowing rate is the rate of interest that we would have to borrow on a collateralized basis over a similar term and amount in a similar economic environment. We determine the incremental borrowing rates for our leases by adjusting the local risk-free interest rate with a credit risk premium corresponding to our credit rating.

Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease cost is recognized as a combination of the amortization expense for the ROU assets and interest expense for the outstanding lease liabilities using the discount rate discussed above. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any significant residual value guarantees or material restrictive covenants. Income from subleases was not significant for any period presented.

May 31,	2021		2020
(In thousands)
Operating lease expense	$	76,581	$	73,665
Variable lease expense		9,292		7,243
Short-term lease expense		2,022		2,583

Total rental expense for all operating leases amounted to $64.9 million for the fiscal year ended May 31, 2019.

The following represents our supplemental cash flow, balance sheet, and other required disclosures as of May 31, 2021 and 2020:

May 31,	2021			2020
(In thousands)
Operating cash outflows from operating leases	$	71,257		$	69,444
Leased assets obtained in exchange for operating lease obligations		69,375			61,614

Current portion of operating leases within Other Accrued Liabilities	$	58,563		$	52,589

Weighted average remaining lease term for operating leases (in years)	8.6			9.1
Weighted average discount rate for operating leases		3.4	%		3.7	%

The following represents our future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities, as of May 31, 2021:

(In thousands)
Year ending May 31,	Operating Leases
2022	$	67,058
2023		54,667
2024		42,986
2025		34,464
2026		29,655
Thereafter		142,155
Total lease payments	$	370,985
Less imputed interest		55,007
Total present value of lease liabilities	$	315,978