Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.21.2
Leases
3 Months Ended
Jul. 31, 2021
Leases [Abstract]  
Leases

13. Leases

The Company’s lease portfolio is comprised of operating leases for office space and equipment and finance leases for equipment. Equipment leases are comprised of vehicles and office equipment. The majority of the Company’s leases include both lease and non-lease components. Non-lease components primarily include maintenance, insurance, taxes and other utilities. The Company combines fixed payments for non-lease components with its lease payments and accounts for them as a single lease component, which increases its ROU assets and lease liabilities. Some of the leases include one or more options to renew or terminate the lease at the Company’s discretion. Generally, the renewal and termination options are not included in the ROU assets and lease liabilities as they are not reasonably certain of exercise. The Company has elected not to recognize a ROU asset or lease liability for leases with an initial term of 12 months or less.

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of the future minimum lease payments. The Company applies the portfolio approach when determining the incremental borrowing rate since it has a centrally managed treasury function. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment.

Operating leases contain both office and equipment leases and have remaining terms that range from less than one year to 11 years, some of which also include options to extend or terminate the lease. Finance leases are comprised of equipment leases and have remaining terms that range from less than one year to five years. Finance lease assets are included in property and equipment, net while finance lease liabilities are included in other accrued liabilities and other liabilities.

The components of lease expense were as follows:

 

 

 

Three Months Ended

July 31,

 

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Finance lease cost

 

 

 

 

 

 

 

 

Amortization of ROU assets

 

$

280

 

 

$

338

 

Interest on lease liabilities

 

 

24

 

 

 

31

 

 

 

 

304

 

 

 

369

 

Operating lease cost

 

 

13,818

 

 

 

13,983

 

Short-term lease cost

 

 

269

 

 

 

108

 

Variable lease cost

 

 

1,668

 

 

 

2,407

 

Sublease income

 

 

(231

)

 

 

(80

)

  Total lease cost

 

$

15,828

 

 

$

16,787

 

 

Supplemental cash flow information related to leases was as follows:

 

 

 

Three Months Ended

July 31,

 

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

14,771

 

 

$

15,000

 

Financing cash flows from finance leases

 

$

289

 

 

$

331

 

 

 

 

 

 

 

 

 

 

ROU assets obtained in exchange for lease obligations:

 

 

 

 

 

 

 

 

Operating leases

 

$

1,238

 

 

$

1,901

 

Finance leases

 

$

306

 

 

$

435

 

 

Supplemental balance sheet information related to leases was as follows:

 

 

 

July 31, 2021

 

 

April 30, 2021

 

 

 

(in thousands)

 

Finance Leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, at cost

 

$

5,015

 

 

$

4,801

 

Accumulated depreciation

 

 

(2,759

)

 

 

(2,590

)

Property and equipment, net

 

$

2,256

 

 

$

2,211

 

 

 

 

 

 

 

 

 

 

Other accrued liabilities

 

$

1,051

 

 

$

1,010

 

Other liabilities

 

 

1,319

 

 

 

1,301

 

Total finance lease liabilities

 

$

2,370

 

 

$

2,311

 

 

 

 

 

 

 

 

 

 

Weighted average remaining lease terms:

 

 

 

 

 

 

 

 

Operating leases

 

4.8 years

 

 

5.0 years

 

Finance leases

 

2.7 years

 

 

2.7 years

 

 

 

 

 

 

 

 

 

 

Weighted average discount rate:

 

 

 

 

 

 

 

 

Operating leases

 

 

4.8

%

 

 

4.8

%

Finance leases

 

 

3.9

%

 

 

4.2

%

 

 

Maturities of lease liabilities were as follows:

 

Year Ending April 30,

 

Operating

 

 

Financing

 

 

 

(in thousands)

 

2022 (excluding the three months ended July 31, 2021)

 

$

42,735

 

 

$

871

 

2023

 

 

47,840

 

 

 

876

 

2024

 

 

40,828

 

 

 

528

 

2025

 

 

34,087

 

 

 

202

 

2026

 

 

28,752

 

 

 

10

 

Thereafter

 

 

20,265

 

 

 

 

Total lease payments

 

 

214,507

 

 

 

2,487

 

Less: imputed interest

 

 

23,735

 

 

 

117

 

Total

 

$

190,772

 

 

$

2,370