Table of Contents attempt to recover other cost increases through improvements to our manufacturing process, supply chain management, and through increases in prices where competitively feasible. As of February 28, 2021, the Company did not have any off-balance sheet arrangements as defined under SEC rules. Specifically, there were no off-balance sheet transactions, arrangements, obligations (including contingent obligations), or other relationships with unconsolidated entities or other persons that have, or may have, a material effect on the financial condition, changes in financial condition, sales or expenses, results of operations, liquidity, capital expenditures or capital resources of the Company. The following summarizes our operating lease obligations, purchase commitments, debt principal payments and interest payments for the next five years and beyond (in thousands): In addition, as of February 28, 2021, we had total outstanding letters of credit in the amount of $24.7 million. These letters of credit are issued for a number of reasons, but are most commonly issued in lieu of customer retention withholding payments covering warranty or performance periods. The preparation of the consolidated financial statements requires us to make estimates that affect the reported value of assets, liabilities, sales and expenses. Our estimates are based on historical experience and various other factors that we believe are reasonable under the circumstances and form the basis for our conclusions. We continually evaluate the information used to make these estimates. With the global economic contraction and uncertainty caused by the COVID-19 pandemic, certain of our accounting estimates, particularly estimates involving prospective financial information, may change as business and economic conditions change. Such changes, if they were to occur, could be material to the Company’s financial statements. Accounting policies and estimates considered most critical are allowances for doubtful accounts, accruals for contingent liabilities, revenue recognition, impairment of long-lived assets, identifiable intangible assets and goodwill, including purchase accounting and accounting for income taxes. Actual results may differ from these estimates under different assumptions or conditions. The development and selection of the critical accounting policies and the related disclosures below have been reviewed with the Audit Committee of the Board of Directors. More information regarding significant accounting policies can be found in Note 1 to the consolidated financial statements. The carrying value of our accounts receivable is periodically evaluated based on the likelihood of collection. An allowance is maintained for estimated credit losses resulting from our customers’ inability to make contracted payments. The allowance is determined by historical experience of uncollected accounts, the level of past due accounts, overall level of outstanding accounts receivable, information about specific customers with respect to their inability to make payments and future expectations of conditions that might impact the collectability of accounts receivable. If the financial condition of our 32 Allowance for Credit Losses Critical Accounting Policies and Estimates Off Balance Sheet Arrangements and Contractual Commitments  The Company has entered into a new lease in Poland that commenced in March 2021, and will result in contractual obligations of approximately $3.3 million over the 15-year lease term, which is not included in the table above. (1)  Purchase commitments consist of non-cancelable forward contracts to purchase zinc at various volumes and prices. All such contracts expire in fiscal 2022. (2)  For variable-rate debt, interest payments are calculated using current interest rates. (3) Operating and Financing Leases Purchase Commitments  Debt Interest  Total Fiscal year: 2022 $ 8,284  $ 50,000  $ —  $ 5,846  $ 64,130  2023 7,796  —  29,000  4,743  41,539  2024 6,913  —  —  4,475  11,388  2025 5,946  —  —  4,475  10,421  2026 4,441  —  —  4,475  8,916  Thereafter 12,973  —  150,000  18,852  181,825  Total $ 46,353  $ 50,000  $ 179,000  $ 42,866  $ 318,219  (1) (2) (3)