Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2.2
Leases
3 Months Ended
Jul. 31, 2022
Leases [Abstract]  
Leases

12. 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 10 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 six 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,

 

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Finance lease cost

 

 

 

 

 

 

 

 

Amortization of ROU assets

 

$

373

 

 

$

280

 

Interest on lease liabilities

 

 

48

 

 

 

24

 

 

 

 

421

 

 

 

304

 

Operating lease cost

 

 

12,415

 

 

 

13,818

 

Short-term lease cost

 

 

163

 

 

 

269

 

Variable lease cost

 

 

2,655

 

 

 

1,668

 

Sublease income

 

 

(507

)

 

 

(231

)

  Total lease cost

 

$

15,147

 

 

$

15,828

 

 

Supplemental cash flow information related to leases was as follows:

 

 

 

Three Months Ended

July 31,

 

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

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

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

15,513

 

 

$

14,771

 

Financing cash flows from finance leases

 

$

412

 

 

$

289

 

 

 

 

 

 

 

 

 

 

ROU assets obtained in exchange for lease obligations:

 

 

 

 

 

 

 

 

Operating leases

 

$

3,555

 

 

$

1,238

 

Finance leases

 

$

2,384

 

 

$

306

 

 

Supplemental balance sheet information related to leases was as follows:

 

 

 

July 31, 2022

 

 

April 30, 2022

 

 

 

(in thousands)

 

Finance Leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, at cost

 

$

7,254

 

 

$

5,770

 

Accumulated depreciation

 

 

(2,708

)

 

 

(3,085

)

Property and equipment, net

 

$

4,546

 

 

$

2,685

 

 

 

 

 

 

 

 

 

 

Other accrued liabilities

 

$

1,328

 

 

$

1,049

 

Other liabilities

 

 

3,250

 

 

 

1,657

 

Total finance lease liabilities

 

$

4,578

 

 

$

2,706

 

 

 

 

 

 

 

 

 

 

Weighted average remaining lease terms:

 

 

 

 

 

 

 

 

Operating leases

 

4.9 years

 

 

5.1 years

 

Finance leases

 

4.3 years

 

 

3.3 years

 

 

 

 

 

 

 

 

 

 

Weighted average discount rate:

 

 

 

 

 

 

 

 

Operating leases

 

 

4.4

%

 

 

4.3

%

Finance leases

 

 

4.3

%

 

 

3.2

%

 

 

Maturities of lease liabilities were as follows:

 

Year Ending April 30,

 

Operating

 

 

Financing

 

 

 

(in thousands)

 

2023 (excluding the three months ended July 31, 2022)

 

$

40,153

 

 

$

1,151

 

2024

 

 

47,870

 

 

 

1,245

 

2025

 

 

40,610

 

 

 

1,001

 

2026

 

 

37,324

 

 

 

716

 

2027

 

 

17,940

 

 

 

522

 

Thereafter

 

 

24,736

 

 

 

388

 

Total lease payments

 

 

208,633

 

 

 

5,023

 

Less: imputed interest

 

 

21,322

 

 

 

445

 

Total

 

$

187,311

 

 

$

4,578