XML 73 R14.htm IDEA: XBRL DOCUMENT
v3.20.1

Leases | 12 Months Ended
--- | ---
Apr. 30, 2020
Leases [Abstract] |
Leases | LEASES The Company is a lessee in situations where we lease property and equipment, most commonly land or building, from a lessor. The Company is a lessor in situations where the Company owns land or building and leases a portion or all of the property or equipment to a tenant. In both situations, leases are reported in accordance with ASC 842 - Leases. As a lessee, the Company recognizes a right-of-use asset representing its right to use the underlying asset for the lease term and a lease liability for the obligation to make lease payments. Both the right-of-use asset and lease liability are initially measured at the present value of the lease payments, with subsequent measurement dependent on the classification of the lease as either a finance or an operating lease. For leases with a term of twelve months or less, we have elected to not recognize lease assets and lease liabilities and will recognize lease expense on a straight-line basis over the lease term. The Company records the operating lease liability in accrued expenses and other long-term liabilities and records the finance lease liability within current maturities of long-term debt and long term debt and finance lease obligations on the consolidated balance sheets. We have elected to adopt the package of practical expedients, as well as the land easement practical expedient. All lessor related activity is considered immaterial to the consolidated financial statements. The leases initially recorded under ASC 842 were recognized, at the time of adoption, at an amount equal to the present value of the lease payments using the incremental borrowing rate of debt based upon the remaining term of the lease. New leases are recognized at the present value of the lease payments using the implicit rate in the lease agreement when it is readily determinable. In the case the implicit rate is not readily determinable, the Company uses the incremental borrowing rate of debt based on the term of the lease. Several leases have variable payment components of the lease such as commission based payments or payments for property taxes and insurance. For these leases, the Company has not included those variable payments in the calculation of the lease liability as the payments are not in-substance fixed and do not depend on an index or rate. These variable payments will be expensed as incurred. The Company also has options to renew or extend the current lease arrangement on many of our leases. In these situations, if it was reasonably certain the lease would be extended, we have included those extensions within the remaining lease payments at the time of measurement. Lease right-of-use assets outstanding as of April 30, 2020 consisted of the following (in thousands):
| Classification |  |  |  | April 30, 2020
Operating lease right-of-use assets | Other assets |  |  |  | $ | 21,143 |
Finance lease right-of-use assets | Property and equipment |  |  |  | $ | 14,583 |
Weighted average remaining lease terms, weighted average discount rates, and supplementary cash flow information for outstanding leases were as follows:
|  |  |  |  | April 30, 2020
Weighted-average remaining lease-term - finance lease |  |  |  | 10.9 |
Weighted-average remaining lease-term - operating lease |  |  |  | 20.4 |
Weighted-average discount rate - finance lease |  |  |  | 5.34 | %
Weighted-average discount rate - operating lease |  |  |  | 4.25 | %
Right-of-use assets obtained in exchange for new finance lease liabilities (in thousands) |  | $ | 1,520 |
Right-of-use assets obtained in exchange for new operating lease liabilities (in thousands) |  | $ | 2,840 |
Future minimum payments under the finance leases and operating leases with initial or remaining terms of one year or more consisted of the following at April 30, 2020 and April 30, 2019:
Years ended April 30, 2020 | Finance leases |  | Operating leases
2021 | $ | 3,118 |  |  | $ | 1,829 |
2022 | 3,110 |  |  | 1,814 |
2023 | 3,116 |  |  | 1,717 |
2024 | 2,565 |  |  | 1,683 |
2025 | 1,167 |  |  | 1,686 |
Thereafter | 10,764 |  |  | 25,335 |
Total minimum lease payments | 23,840 |  |  | 34,064 |
Less amount representing interest | 7,094 |  |  | 12,468 |
Present value of net minimum lease payments | $ | 16,746 |  |  | $ | 21,596 |
Years ended April 30, 2019 | Capital leases |  | Operating leases
2020 | $ | 3,103 |  |  | $ | 1,703 |
2021 | 3,109 |  |  | 1,547 |
2022 | 3,096 |  |  | 1,354 |
2023 | 3,098 |  |  | 1,228 |
2024 | 2,548 |  |  | 1,066 |
Thereafter | 9,215 |  |  | 10,438 |
Total minimum lease payments | 24,169 |  |  | $ | 17,336 |
Less amount representing interest | 7,689 |  |  |
Present value of net minimum lease payments | $ | 16,480 |  |  |
Effective during the third quarter of fiscal year 2020, Casey’s Marketing Company, and the City of Joplin, Missouri (“Joplin”) entered into an agreement in which Joplin agreed to issue up to $51.4 million of taxable industrial development revenue bonds for the purpose of acquiring, constructing, improving, purchasing, equipping and installing a warehouse and distribution facility, which is to be developed and used by the Company. As title transfers to Joplin throughout development and the Company subsequently leases the related asset from Joplin, we have accounted for the transaction under the sale-and-leaseback guidance included in ASC 842-40. We have a purchase option included in the lease agreement for below the fair value of the asset, which prevents the transfer of the assets to Joplin from being recognized as a sale. Accordingly, we have not recognized any gain or loss related to the transfer. Furthermore, we have not derecognized the transferred assets and continue to recognize them in property and equipment on the consolidated balance sheets. The Company has the right and intends to set-off any obligations to make payments under the lease, with proceeds due from the industrial revenue bonds. As of April 30, 2020, we have $5,505 recognized as construction in process in property and equipment on the consolidated balance sheets related to this agreement.
Leases | LEASES The Company is a lessee in situations where we lease property and equipment, most commonly land or building, from a lessor. The Company is a lessor in situations where the Company owns land or building and leases a portion or all of the property or equipment to a tenant. In both situations, leases are reported in accordance with ASC 842 - Leases. As a lessee, the Company recognizes a right-of-use asset representing its right to use the underlying asset for the lease term and a lease liability for the obligation to make lease payments. Both the right-of-use asset and lease liability are initially measured at the present value of the lease payments, with subsequent measurement dependent on the classification of the lease as either a finance or an operating lease. For leases with a term of twelve months or less, we have elected to not recognize lease assets and lease liabilities and will recognize lease expense on a straight-line basis over the lease term. The Company records the operating lease liability in accrued expenses and other long-term liabilities and records the finance lease liability within current maturities of long-term debt and long term debt and finance lease obligations on the consolidated balance sheets. We have elected to adopt the package of practical expedients, as well as the land easement practical expedient. All lessor related activity is considered immaterial to the consolidated financial statements. The leases initially recorded under ASC 842 were recognized, at the time of adoption, at an amount equal to the present value of the lease payments using the incremental borrowing rate of debt based upon the remaining term of the lease. New leases are recognized at the present value of the lease payments using the implicit rate in the lease agreement when it is readily determinable. In the case the implicit rate is not readily determinable, the Company uses the incremental borrowing rate of debt based on the term of the lease. Several leases have variable payment components of the lease such as commission based payments or payments for property taxes and insurance. For these leases, the Company has not included those variable payments in the calculation of the lease liability as the payments are not in-substance fixed and do not depend on an index or rate. These variable payments will be expensed as incurred. The Company also has options to renew or extend the current lease arrangement on many of our leases. In these situations, if it was reasonably certain the lease would be extended, we have included those extensions within the remaining lease payments at the time of measurement. Lease right-of-use assets outstanding as of April 30, 2020 consisted of the following (in thousands):
| Classification |  |  |  | April 30, 2020
Operating lease right-of-use assets | Other assets |  |  |  | $ | 21,143 |
Finance lease right-of-use assets | Property and equipment |  |  |  | $ | 14,583 |
Weighted average remaining lease terms, weighted average discount rates, and supplementary cash flow information for outstanding leases were as follows:
|  |  |  |  | April 30, 2020
Weighted-average remaining lease-term - finance lease |  |  |  | 10.9 |
Weighted-average remaining lease-term - operating lease |  |  |  | 20.4 |
Weighted-average discount rate - finance lease |  |  |  | 5.34 | %
Weighted-average discount rate - operating lease |  |  |  | 4.25 | %
Right-of-use assets obtained in exchange for new finance lease liabilities (in thousands) |  | $ | 1,520 |
Right-of-use assets obtained in exchange for new operating lease liabilities (in thousands) |  | $ | 2,840 |
Future minimum payments under the finance leases and operating leases with initial or remaining terms of one year or more consisted of the following at April 30, 2020 and April 30, 2019:
Years ended April 30, 2020 | Finance leases |  | Operating leases
2021 | $ | 3,118 |  |  | $ | 1,829 |
2022 | 3,110 |  |  | 1,814 |
2023 | 3,116 |  |  | 1,717 |
2024 | 2,565 |  |  | 1,683 |
2025 | 1,167 |  |  | 1,686 |
Thereafter | 10,764 |  |  | 25,335 |
Total minimum lease payments | 23,840 |  |  | 34,064 |
Less amount representing interest | 7,094 |  |  | 12,468 |
Present value of net minimum lease payments | $ | 16,746 |  |  | $ | 21,596 |
Years ended April 30, 2019 | Capital leases |  | Operating leases
2020 | $ | 3,103 |  |  | $ | 1,703 |
2021 | 3,109 |  |  | 1,547 |
2022 | 3,096 |  |  | 1,354 |
2023 | 3,098 |  |  | 1,228 |
2024 | 2,548 |  |  | 1,066 |
Thereafter | 9,215 |  |  | 10,438 |
Total minimum lease payments | 24,169 |  |  | $ | 17,336 |
Less amount representing interest | 7,689 |  |  |
Present value of net minimum lease payments | $ | 16,480 |  |  |
Effective during the third quarter of fiscal year 2020, Casey’s Marketing Company, and the City of Joplin, Missouri (“Joplin”) entered into an agreement in which Joplin agreed to issue up to $51.4 million of taxable industrial development revenue bonds for the purpose of acquiring, constructing, improving, purchasing, equipping and installing a warehouse and distribution facility, which is to be developed and used by the Company. As title transfers to Joplin throughout development and the Company subsequently leases the related asset from Joplin, we have accounted for the transaction under the sale-and-leaseback guidance included in ASC 842-40. We have a purchase option included in the lease agreement for below the fair value of the asset, which prevents the transfer of the assets to Joplin from being recognized as a sale. Accordingly, we have not recognized any gain or loss related to the transfer. Furthermore, we have not derecognized the transferred assets and continue to recognize them in property and equipment on the consolidated balance sheets. The Company has the right and intends to set-off any obligations to make payments under the lease, with proceeds due from the industrial revenue bonds. As of April 30, 2020, we have $5,505 recognized as construction in process in property and equipment on the consolidated balance sheets related to this agreement.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration