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Leases | 3 Months Ended
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Oct. 31, 2019
Leases [Abstract] |
Leases of Lessee Disclosure [Text Block] | NOTE 4 – Leases The Company leases certain facilities and certain equipment under non-cancelable capital and operating leases, which are recorded as right-of-use assets and lease liabilities. Certain leases provide the Company with either a right of first refusal to acquire or an option to purchase a facility at fair value. Certain leases also have renewal options to extend the leases for additional periods at the Company’s discretion. Certain leases also contain escalation clauses and renewal option clauses calling for increased rents. Where a lease contains an escalation clause or a concession, such as a rent holiday or tenant improvement allowance, the Company includes these items in the determination of the right-of-use asset and the lease liabilities. The effects of these escalation clauses or concessions have been reflected in lease expense on a straight-line basis over the expected lease term and any variable lease payments subsequent to establishing the lease liability are expensed as incurred. The lease term commences on the date when the Company has the right to control the use of the leased property, which is typically before lease payments are due under the terms of the lease. Certain of the Company’s leases have renewal periods up to 40 years, exercisable at the Company’s option, and generally require the Company to pay property taxes, insurance and maintenance costs, in addition to the lease payments. At lease inception, the Company includes all renewals or option periods that are reasonably certain to exercise when determining the expected lease term, as failure to renew the lease would impose an economic penalty. The Company determines whether a contract is or contains a lease at the inception of the contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control and direct the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company generally must also have the right to obtain substantially all of the economic benefits from the use of the property, plant, and equipment. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the expected lease term. To determine the present value of lease payments not yet paid, the Company estimates incremental borrowing rates based on the information available at lease commencement date, as rates are not implicitly stated in the Company’s leases. Components of lease expense for the three months ended October 31, 2019 were as follows:
|  |  | Three Months Ended October 31,
(In thousands) |  | 2019
Operating lease expense |  | $ | 7,976 |
Finance lease expense: |  |
| Amortization of right-of-use assets |  | 155 |
| Interest on finance lease liabilities |  | 7 |
Short-term lease expense |  | 1,995 |
Variable lease expense |  | 144 |
Total lease expense |  | $ | 10,277 |
The components of right-of-use assets and lease liabilities on the consolidated balance sheet are as follows (in thousands):
Lease Asset and Liabilities |  | Balance Sheet Classification (In thousands) |  | October 31, 2019
Operating lease right-of-use assets |  | Operating lease right-of-use assets |  | $ | 136,368 |
Finance lease right-of-use assets |  | Property and equipment, net |  | 1,561 |
Total lease assets, net |  |  |  | $ | 137,929 |
Operating lease liabilities - current |  | Current portion of operating lease liabilities |  | $ | 27,055 |
Finance lease liabilities - current |  | Current portion of revolving loan facility and finance lease liabilities |  | 590 |
Operating lease liabilities - non-current |  | Operating lease liabilities, net of current portion |  | 113,263 |
Finance lease liabilities - non-current |  | Long-term debt, revolving loan facility and finance lease liabilities, net of discount |  | 978 |
Total lease liabilities |  |  |  | $ | 141,886 |
The weighted-average remaining lease terms and discount rates as of October 31, 2019 are as follows:
(in thousands) |  | Weighted-Average Remaining Lease Term (in years) |  | Weighted-Average Discount Rate(1)
Operating leases |  | 9.12 |  | 3.03 | %
Finance leases |  | 2.55 |  | 1.73 | %
(1) | We cannot determine the interest rate implicit in the Company’s leases. Therefore, the discount rate represents the Company’s incremental borrowing rate and is determined based on the risk-free rate, adjusted for the risk premium attributed to our corporate credit rating for a secured or collateralized instrument.
Supplemental cash flow information related to leases:
(in thousands) |  | Three Months Ended October 31, 2019
Cash paid for amounts included in the measurement of lease liabilities |  |
| Operating cash flows related to operating leases |  | $ | 7,753 |
| Operating cash flows related to finance leases |  | 7 |
| Financing cash flows related to finance leases |  | 159 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | 9,009 |
Right-of-use assets obtained in exchange for new finance lease liabilities |  | — |
The annual maturities of our lease liabilities as of October 31, 2019 are as follows:
Fiscal year (In thousands) |  | Finance leases |  | Operating leases
2020 (remaining nine months) |  | $ | 478 |  |  | $ | 22,918 |
2021 |  | 619 |  |  | 26,450 |
2022 |  | 505 |  |  | 21,574 |
2023 |  | — |  |  | 18,831 |
2024 |  | — |  |  | 14,492 |
Thereafter |  | — |  |  | 59,518 |
Total future lease commitments |  | $ | 1,602 |  |  | $ | 163,783 |
Less: imputed interest |  | (34 | ) |  | (23,465 | )
Present value of lease liabilities |  | $ | 1,568 |  |  | $ | 140,318 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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