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Leases | 6 Months Ended
--- | ---
Jan. 31, 2020
Leases [Abstract] |
Leases |
| January 31, 2020 |  |
Weighted-average remaining lease term |  |  |
Operating leases | 14.2 years |  |
Finance leases | 7.3 years |  |
Weighted-average discount rate |  |  |
Operating leases | 3.4 | % |  |
Finance leases | 9.7 | % |  |
Leases | Leases On August 1, 2019, the Company adopted new accounting guidance under Accounting Standards Codification Topic 842 ("ASC 842") Leases. ASC 842 established new criteria for recognizing right-of-use assets and lease liabilities for operating lease arrangements. The Company elected to adopt this guidance utilizing the optional transition method that allowed the Company to implement this new guidance prospectively, and to only include the disclosures required under ASC 842 for the periods subsequent to adoption. The Company has operating leases principally for land, buildings and equipment and has various finance leases for certain land and buildings expiring between calendar 2020 and 2028. Leases with an initial term of 12 months or fewer and which do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the term of the lease. Certain of the Company's leases include options to extend or terminate the leases and these options have been included in the relevant lease term to the extent that they are reasonably certain to be exercised. The Company has elected the practical expedient to not separate non-lease components from the lease components to which they relate, and instead account for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. Accordingly, all costs associated with a lease contract are accounted for as lease costs. Lease costs are recorded in Cost of products sold, Selling, general, and administrative expenses and Interest expense in the Condensed Consolidated Statements of Income and Comprehensive Income. The Company does not include significant restrictions or covenants in our lease agreements, and residual value guarantees are not generally included within our operating leases. The components of lease costs for the three and six-month periods ended January 31, 2020 were as follows:
| Three Months Ended |  | Six Months Ended
| January 31, 2020 |  | January 31, 2020
Operating lease cost | $ | 3,112 |  |  | $ | 6,143 |
Finance lease cost |  |  |
Amortization of right-of-use assets | 136 |  |  | 272 |
Interest on lease liabilities | 134 |  |  | 271 |
Total lease cost | $ | 3,382 |  |  | $ | 6,686 |
Other information related to leases was as follows:
|  |  | Six Months Ended
Supplemental Cash Flows Information |  |  | January 31, 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases |  |  |  | $ | 6,094 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Operating leases |  |  |  | $ | 1,561 |
Supplemental Balance Sheet Information | January 31, 2020 |  |
Operating leases: |  |  |
Operating lease right-of-use assets | $ | 31,870 |  |  |
Operating lease liabilities |  |  |
Other current liabilities | $ | 4,570 |  |  |
Other long-term liabilities | 27,446 |  |  |
Total operating lease liabilities | $ | 32,016 |  |  |
Finance leases: |  |  |
Finance lease right-of-use assets | $ | 3,944 |  |  |
Finance lease liabilities |  |  |
Other current liabilities | $ | 473 |  |  |
Other long-term liabilities | 5,003 |  |  |
Total finance lease liabilities | $ | 5,476 |  |  |
| January 31, 2020 |  |
Weighted-average remaining lease term |  |  |
Operating leases | 14.2 years |  |
Finance leases | 7.3 years |  |
Weighted-average discount rate |  |  |
Operating leases | 3.4 | % |  |
Finance leases | 9.7 | % |  |
Future minimum rental payments required under operating and finance leases as of January 31, 2020 were as follows:
|  | Operating Leases |  | Financing Leases
For the remainder of the fiscal year ending July 31, 2020 |  | $ | 5,176 |  |  | $ | 487 |
For the fiscal year ending July 31, 2021 |  | 8,113 |  |  | 991 |
For the fiscal year ending July 31, 2022 |  | 6,510 |  |  | 1,013 |
For the fiscal year ending July 31, 2023 |  | 4,583 |  |  | 1,036 |
For the fiscal year ending July 31, 2024 |  | 3,877 |  |  | 1,059 |
For the fiscal year ending July 31, 2025 and thereafter |  | 20,976 |  |  | 3,093 |
Total future lease payments |  | $ | 49,235 |  |  | $ | 7,679 |
Less: amount representing interest |  | (17,219) |  |  | (2,203) |
Total reported lease liability |  | $ | 32,016 |  |  | $ | 5,476 |
Future minimum rental payments required under operating and finance leases as of July 31, 2019 were as follows:
| Operating Leases |  | Finance Leases
For the fiscal year ending July 31, 2020 | $ | 8,785 |  |  | $ | 974 |
For the fiscal year ending July 31, 2021 | 6,809 |  |  | 993 |
For the fiscal year ending July 31, 2022 | 5,437 |  |  | 1,015 |
For the fiscal year ending July 31, 2023 | 3,980 |  |  | 1,037 |
For the fiscal year ending July 31, 2024 | 3,424 |  |  | 1,061 |
For the fiscal year ending July 31, 2025 and thereafter | 20,745 |  |  | 3,037 |
Total future lease payments | $ | 49,180 |  |  | 8,117 |
Less: amount representing interest |  |  | (2,427) |
Total lease liability |  |  | 5,690 |
Less: current portion |  |  | (444) |
Long-term finance lease obligations |  |  | $ | 5,246 |

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + 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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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