We account for leases in accordance with ASC 842 “Leases” (“ASC 842”). We determine whether an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration.

We have operating leases for office equipment, as well as offices, warehouses, and other facilities used for our operations. We also have finance leases comprised primarily of computer hardware and machinery and equipment. Our leases have remaining lease terms of less than 1 year to 10 years, some of which include renewal options. We consider these renewal options in determining the lease term used to establish our right-of-use assets and lease

liabilities when it is determined that it is reasonably certain that the renewal option will be exercised. The Company had no short-term leases during the three and nine months ended November 30, 2020.

On September 30, 2019, the Company, through its subsidiary Voxx German Holdings GmbH, executed a sale leaseback transaction, selling its real property in Pulheim, Germany to CLM S.A. RL (“the Purchaser”) for €10,920. Net proceeds received from the transaction were approximately $9,500. The transaction qualified for sale leaseback accounting in accordance with ASC 842. Concurrently with the sale, the Company entered into an operating lease arrangement (“lease”) with the Purchaser for a small portion of the real property to continue to operate the combined Magnat/Klipsch sales office in Germany. The Company recognized a gain related to the execution of the sale transaction of $4,057 for the three and nine months ended November 30, 2019, which is recorded in Other income (expense) on the Unaudited Consolidated Statements of Operations and Comprehensive Income (Loss).

The components of lease cost for the three and nine months ended November 30, 2020 and 2019 were as follows:

	Three months ended November 30,				Nine months ended November 30,
	2020		2019		2020		2019
Operating lease cost (a) (c)	$	328	$	209	$	836	$	668
Finance lease cost:
Amortization of right of use assets (a)		139		167		465		516
Interest on lease liabilities (b)		6		12		23		36
Total finance lease cost	$	145	$	179	$	488	$	552

	November 30, 2020			February 29, 2020
Operating Leases
Operating lease, right of use assets	$	4,811		$	3,143
Total operating lease right of use assets	$	4,811		$	3,143
Accrued expenses and other current liabilities	$	1,111		$	784
Operating lease liabilities, less current portion		3,813			2,391
Total operating lease liabilities	$	4,924		$	3,175
Finance Leases
Property, plant, and equipment, gross	$	2,503		$	2,503
Accumulated depreciation		(1,674	)		(1,209	)
Total finance lease right of use assets	$	829		$	1,294
Accrued expenses and other current liabilities	$	469		$	613
Finance lease liabilities, less current portion		386			720
Total finance lease liabilities	$	855		$	1,333
Weighted Average Remaining Lease Term
Operating leases	6.1 years			4.4 years
Finance leases	2.1 years			3.9 years
Weighted Average Discount Rate
Operating leases		4.54	%		5.98	%
Finance leases		3.87	%		3.87	%

Maturities of lease liabilities on November 30 of each of the succeeding years are as follows:

	Operating Leases		Finance Leases
2021	$	1,303		483
2022		1,119		274
2023		807		118
2024		632		—
2025		456		—
Thereafter		1,228		—
Total lease payments		5,545		875
Less imputed interest		621		20
Total	$	4,924		855

As of November 30, 2020, the Company has not entered into any lease agreements that have not yet commenced.

The Company owns and occupies buildings as part of its operations. Certain space within these buildings may, from time to time, be leased to third parties from which the Company earns rental income as lessor. This leased space is recorded within property, plant and equipment and was not material to the Company's Consolidated Balance Sheets at November 30, 2020 and February 29, 2020. Rental income earned by the Company for the three and nine months ended November 30, 2020 and 2019 was $188 and $556, respectively, and $176 and $460, respectively, which is recorded within Other income (expense).