8.LEASES

Lessee Obligations

In the normal course of business, we rent office space, primarily for international sales administration offices, in commercial office complexes that are conducive to sales and administrative operations. We also rent warehousing and distribution facilities that are designed to provide secure storage and efficient distribution of our training products, books, and accessories, and certain office equipment such as copiers. All of these leases are classified as operating leases. Operating lease assets and liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. Since most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Leases with an initial term of 12 months or less are not recorded on the balance sheet. For operating leases, expense is recognized on a straight-line basis over the lease term. We do not have significant amounts of variable lease payments.

Some of our operating leases contain renewal options that may be exercised at our discretion after the completion of the base rental term. At August 31, 2020, we had operating leases with remaining terms ranging from less than one year to approximately five years. The amounts of assets and liabilities (in thousands) and other information related to our operating leases follows:



	Balance Sheet
	Caption	Amount
Assets:
Operating lease right of use assets	Other long-term assets	$	1,203

Liabilities:
Current:
Operating lease liabilities	Accrued liabilities		695
Long-Term:
Operating lease liabilities	Other long-term liabilities		508
		$	1,203

Weighted Average Remaining Lease Term:
Operating leases (years)			2.7

Weighted Average Discount Rate:
Operating leases			4.2	%

In fiscal 2020, we obtained $1.5 million of right-of-use operating lease assets in exchange for operating lease liabilities. Future minimum lease payments under our operating leases at August 31, 2020, are as follows (in thousands):



YEAR ENDING
AUGUST 31,
2021	$	751
2022		208
2023		121
2024		97
2025		87
Thereafter		14
Total operating lease payments		1,278
Less imputed interest		(75)
Present value of operating lease liabilities	$	1,203

We recognize lease expense on a straight-line basis over the life of the lease agreement. Total rent expense recorded in selling, general, and administrative expense from our lease agreements totaled $1.5 million, $1.5 million, and $1.6 million for the fiscal years ended August 31, 2020, 2019, and 2018.

As previously disclosed in our fiscal 2019 Form 10-K under the prior guidance of ASC 840, minimum payments under operating lease agreements as of August 31, 2019 were as follows (in thousands):



YEAR ENDING
AUGUST 31,
2020	$	752
2021		472
2022		112
2023		97
2024		79
Thereafter		92
	$	1,604

Lessor Accounting

We have subleased the majority of our corporate headquarters campus located in Salt Lake City, Utah to multiple tenants. These sublease agreements are accounted for as operating leases. We recognize sublease income on a straight-line basis over the life of the sublease agreement. The cost basis of our corporate campus was $36.0 million, which had a carrying value of $5.9 million at August 31, 2020. The following future minimum lease payments due to us from our sublease agreements at August 31, 2020, are as follows (in thousands):



YEAR ENDING
AUGUST 31,
2021	$	3,965
2022		3,720
2023		2,085
2024		1,551
2025		1,292
Thereafter		-
	$	12,613

Sublease revenue totaled $3.9 million, $3.9 million, and $3.5 million during the fiscal years ended August 31, 2020, 2019, and 2018.