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Leases | 12 Months Ended
--- | ---
Apr. 30, 2023
Leases [Abstract] |
Leases | LEASES The Company is a lessee in situations where we lease property and equipment, most commonly land, building or store equipment, 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 operating lease liabilities in other accrued expenses and other long-term liabilities and records finance lease liabilities within current maturities of long-term debt and long-term debt and finance lease obligations on the consolidated balance sheets. All lessor related activity is considered immaterial to the consolidated financial statements. 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 our incremental borrowing rate of debt based on the term of the lease. The Company commonly has options to renew or extend the current lease arrangement on many of our leases. In these situations, if it is reasonably certain the lease would be extended, we have included those extensions within the remaining lease payments at the time of measurement. When acquiring leases in a business combination, we retain the lease classification utilized by the seller if it was determined using acceptable methods under ASC 842. As part of the allocation of the purchase price in a business combination, lease terms are compared to market terms utilizing an income approach to determine if leases are favorable or unfavorable. Any favorable or unfavorable leasehold interests identified increase (favorable) or reduce (unfavorable) the right-of-use lease asset and are recognized over the life of the related right-of-use asset. Lease right-of-use assets outstanding as of April 30, 2023 and 2022 consisted of the following:
| Classification |  | April 30, 2023 |  | April 30, 2022
Finance lease right-of-use assets | Property and equipment |  | $ | 79,344 |  |  | $ | 59,677 |
Operating lease right-of-use assets | Other assets |  | 107,994 |  |  | 104,579 |
The summary of lease-related costs included on the consolidated statements of income is included below:
|  | Years ended April 30,
|  | 2023 |  | 2022 |  | 2021
Operating lease cost |  | $ | 9,346 |  |  | $ | 6,721 |  |  | $ | 2,290 |
Finance lease cost: |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 5,882 |  |  | $ | 4,489 |  |  | $ | 2,870 |
Interest on lease liabilities |  | 2,966 |  |  | 2,337 |  |  | 612 |
Weighted average remaining lease terms, weighted average discount rates, and supplementary cash flow information or outstanding leases were as follows:
| April 30, 2023 |  | April 30, 2022
Weighted-average remaining lease-term - finance lease | 15.1 |  | 19.3
Weighted-average remaining lease-term - operating lease | 19.8 |  | 20.3
Weighted-average discount rate - finance lease | 4.40 | % |  | 3.97 | %
Weighted-average discount rate - operating lease | 4.33 | % |  | 3.98 | %
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | 25,166 |  |  | $ | 52,525 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 14,642 |  |  | 87,723 |
Future minimum payments under the finance leases and operating leases consisted of the following at April 30, 2023:
Years ended April 30, | Finance leases |  | Operating leases
2024 | $ | 12,398 |  |  | $ | 8,140 |
2025 | 10,913 |  |  | 8,204 |
2026 | 10,589 |  |  | 8,118 |
2027 | 10,596 |  |  | 8,059 |
2028 | 9,644 |  |  | 8,027 |
Thereafter | 76,757 |  |  | 123,773 |
Total minimum lease payments | $ | 130,897 |  |  | $ | 164,321 |
Less amount representing interest | 35,825 |  |  | 58,392 |
Present value of net minimum lease payments | $ | 95,072 |  |  | $ | 105,929 |
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 $51,400 of taxable industrial development revenue bonds for the purpose of acquiring, constructing, improving, purchasing, equipping and installing a warehouse and distribution facility, which has been completed and is currently being used by the Company. As the title of the development was transferred to Joplin and the Company is subsequently leasing 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, 2023, we have recognized the full amount of bonds available as 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, building or store equipment, 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 operating lease liabilities in other accrued expenses and other long-term liabilities and records finance lease liabilities within current maturities of long-term debt and long-term debt and finance lease obligations on the consolidated balance sheets. All lessor related activity is considered immaterial to the consolidated financial statements. 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 our incremental borrowing rate of debt based on the term of the lease. The Company commonly has options to renew or extend the current lease arrangement on many of our leases. In these situations, if it is reasonably certain the lease would be extended, we have included those extensions within the remaining lease payments at the time of measurement. When acquiring leases in a business combination, we retain the lease classification utilized by the seller if it was determined using acceptable methods under ASC 842. As part of the allocation of the purchase price in a business combination, lease terms are compared to market terms utilizing an income approach to determine if leases are favorable or unfavorable. Any favorable or unfavorable leasehold interests identified increase (favorable) or reduce (unfavorable) the right-of-use lease asset and are recognized over the life of the related right-of-use asset. Lease right-of-use assets outstanding as of April 30, 2023 and 2022 consisted of the following:
| Classification |  | April 30, 2023 |  | April 30, 2022
Finance lease right-of-use assets | Property and equipment |  | $ | 79,344 |  |  | $ | 59,677 |
Operating lease right-of-use assets | Other assets |  | 107,994 |  |  | 104,579 |
The summary of lease-related costs included on the consolidated statements of income is included below:
|  | Years ended April 30,
|  | 2023 |  | 2022 |  | 2021
Operating lease cost |  | $ | 9,346 |  |  | $ | 6,721 |  |  | $ | 2,290 |
Finance lease cost: |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 5,882 |  |  | $ | 4,489 |  |  | $ | 2,870 |
Interest on lease liabilities |  | 2,966 |  |  | 2,337 |  |  | 612 |
Weighted average remaining lease terms, weighted average discount rates, and supplementary cash flow information or outstanding leases were as follows:
| April 30, 2023 |  | April 30, 2022
Weighted-average remaining lease-term - finance lease | 15.1 |  | 19.3
Weighted-average remaining lease-term - operating lease | 19.8 |  | 20.3
Weighted-average discount rate - finance lease | 4.40 | % |  | 3.97 | %
Weighted-average discount rate - operating lease | 4.33 | % |  | 3.98 | %
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | 25,166 |  |  | $ | 52,525 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 14,642 |  |  | 87,723 |
Future minimum payments under the finance leases and operating leases consisted of the following at April 30, 2023:
Years ended April 30, | Finance leases |  | Operating leases
2024 | $ | 12,398 |  |  | $ | 8,140 |
2025 | 10,913 |  |  | 8,204 |
2026 | 10,589 |  |  | 8,118 |
2027 | 10,596 |  |  | 8,059 |
2028 | 9,644 |  |  | 8,027 |
Thereafter | 76,757 |  |  | 123,773 |
Total minimum lease payments | $ | 130,897 |  |  | $ | 164,321 |
Less amount representing interest | 35,825 |  |  | 58,392 |
Present value of net minimum lease payments | $ | 95,072 |  |  | $ | 105,929 |
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 $51,400 of taxable industrial development revenue bonds for the purpose of acquiring, constructing, improving, purchasing, equipping and installing a warehouse and distribution facility, which has been completed and is currently being used by the Company. As the title of the development was transferred to Joplin and the Company is subsequently leasing 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, 2023, we have recognized the full amount of bonds available as property and equipment on the consolidated balance sheets related to this agreement.

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- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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