Leases

9 Months Ended

Aug. 31, 2022

The Company has operating leases for administrative, product development, and sales and marketing facilities, vehicles, and equipment under various non-cancelable lease agreements. The Company’s leases have remaining lease terms ranging from 1 year to 8 years. The Company’s lease terms may include options to extend or terminate the lease where it is reasonably certain that the Company will exercise those options. The Company considers several economic factors when making the determination as to whether the Company will exercise options to extend or terminate the lease, including but not limited to, the significance of leasehold improvements incurred in the office space, the difficulty in replacing the asset, underlying contractual obligations, or specific characteristics unique to a particular lease. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Consideration in the contract is comprised of any fixed payments and variable payments that depend on an index or rate. Payments in the Company's operating lease arrangements primarily consist of base office rent. The Company makes variable payments on certain of its leases related to taxes, insurance, common area maintenance, and utilities, among other things.

The components of operating lease cost for the three and nine months ended August 31, 2022 were as follows (in thousands):


	Three Months Ended		Nine Months Ended
	August 31, 2022		August 31, 2022
Lease costs under long-term operating leases	$	1,760	$	5,344
Lease costs under short-term operating leases	19		50
Variable lease cost under short-term and long-term operating leases(1)	143		437
Total operating lease cost	$	1,922	$	5,831

(1) Lease costs that are not fixed at lease commencement.

The components of operations lease cost for the three and nine months ended August 31, 2021 were as follows (in thousands):


	Three Months Ended		Nine Months Ended
	August 31, 2021		August 31, 2021
Lease costs under long-term operating leases	$	1,991	$	6,135
Lease costs under short-term operating leases	3		22
Variable lease cost under short-term and long-term operating leases(1)	130		280
Operating lease right-of-use asset impairment	—		36
Total operating lease cost	$	2,124	$	6,473

(1) Lease costs that are not fixed at lease commencement.

The table below presents supplemental cash flow information related to leases during the nine months ended August 31, 2022 and August 31, 2021 (in thousands):


	Nine Months Ended
	August 31, 2022		August 31, 2021
Cash paid for leases	$	6,481	$	6,440
Right-of-use assets recognized for new leases and amendments (non-cash)	$	343	$	3,222

Weighted average remaining lease term in years and weighted average discount rate are as follows:


	August 31, 2022		November 30, 2021
Weighted average remaining lease term in years	3.54		4.15
Weighted average discount rate	2.7	%	2.6	%

Future payments under non-cancellable leases are as follows (in thousands):


	August 31, 2022
Remainder of 2022	$	2,100
2023	7,823
2024	7,444
2025	4,867
2026	1,781
Thereafter	1,300
Total lease payments	25,315
Less imputed interest(1)	(1,210)
Present value of lease liabilities	$	24,105

(1) Lease liabilities are measured at the present value of the remaining lease payments using a discount rate determined at lease commencement unless the discount rate is updated as a result of a lease reassessment event.