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Leases (Notes) | 6 Months Ended
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Jan. 31, 2020
Leases [Abstract] |
Leases of Lessee Disclosure [Text Block] | 4. Leases The Company’s operating leases consist primarily of commercial and retail space, office space, employee residential units, vehicles and other equipment. The Company determines if an arrangement is or contains a lease at contract inception or modification. The Company’s lease contracts generally range from 1 year to 60 years, with some lease contracts containing one or more lease extension options, exercisable at the Company’s discretion. The Company generally does not include these lease extension options in the initial lease term as it is not reasonably certain that it will exercise such options at contract inception. In addition, certain lease arrangements contain fixed and variable lease payments. The variable lease payments are primarily contingent rental payments based on: (i) a percentage of revenue related to the leased property; (ii) payments based on a percentage of sales over contractual levels; or (iii) lease payments adjusted for changes in an index or market value. These variable lease payments are typically recognized when the underlying event occurs and are included in operating expenses in the Company's Consolidated Condensed Statements of Operations in the same line item as the expense arising from fixed lease payments. The Company’s lease agreements may also include non-lease components, such as common area maintenance and insurance, which are accounted for separately as non-lease components. Future lease payments that are contingent and non-lease components are not included in the measurement of the operating lease liability. The Company’s lease agreements do not contain any material residual value guarantees or restrictive covenants. Lease expense related to lease payments is recognized on a straight-line basis over the term of the lease. The Company’s leases do not provide a readily determinable implicit rate. As a result, the Company measures the lease liability using an estimated incremental borrowing rate which is intended to reflect the rate of interest the Company would pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The Company applies the estimated incremental borrowing rates at a portfolio level based on the economic environment associated with the lease. The Company uses the long-lived assets impairment guidance to determine recognition and measurement of an ROU asset impairment, if any. The Company monitors for events or changes in circumstances that require a reassessment. The components of lease expense for the three and six months ended January 31, 2020, were as follows (in thousands):
|  | Three Months Ended January 31, 2020 |  | Six Months Ended January 31, 2020
Finance leases: |  |  |  |
Amortization of the finance ROU assets |  | $ | 2,438 |  |  | $ | 4,876 |
Interest on lease liabilities |  | $ | 8,509 |  |  | $ | 17,017 |
Operating leases: |  |  |  |
Operating lease expense |  | $ | 10,411 |  |  | $ | 20,448 |
Short-term lease expense 1 |  | $ | 2,459 |  |  | $ | 4,812 |
Variable lease expense |  | $ | 1,339 |  |  | $ | 2,181 |
1 Short-term lease expense is attributable to leases with terms of 12 months or less which are not included within the Company’s Consolidated Condensed Balance Sheet. The following table presents the supplemental cash flow information associated with the Company’s leasing activities for the six months ended January 31, 2020 (in thousands):
|  | Six Months Ended January 31, 2020
Cash flow supplemental information: |  |
Operating cash outflows for operating leases |  | $ | 25,435 |
Operating cash outflows for finance leases |  | $ | 15,180 |
Financing cash outflows for finance leases |  | $ | 5,387 |
Weighted-average remaining lease terms and discount rates are as follows:
|  | As of January 31, 2020
Weighted-average remaining lease term (in years) |  |
Operating leases |  | 10.7 |
Finance leases |  | 43.4 |
Weighted-average discount rate |  |
Operating leases |  | 4.5 | %
Finance leases |  | 10.0 | %
Future minimum lease payments for operating and finance leases as of January 31, 2020 reflected by fiscal year (August 1 through July 31) are as follows (in thousands):
| Operating Leases |  | Finance Leases
2020 (February 2020 through July 2020) | $ | 30,141 |  |  | $ | 14,126 |
2021 | 45,805 |  |  | 28,818 |
2022 | 42,606 |  |  | 29,394 |
2023 | 37,666 |  |  | 29,982 |
2024 | 33,889 |  |  | 30,582 |
Thereafter | 166,166 |  |  | 1,805,048 |
Total future minimum lease payments | 356,273 |  |  | 1,937,950 |
Less amount representing interest | (92,149 | ) |  | (1,594,803 | )
Total lease liabilities | $ | 264,124 |  |  | $ | 343,147 |
Future minimum lease payments in accordance with Topic 840 as of July 31, 2019, reflected by fiscal year, were as follows (in thousands):
| Operating Leases |  | Capital Leases
2020 | $ | 44,984 |  |  | $ | 28,253 |
2021 | 42,512 |  |  | 28,818 |
2022 | 39,440 |  |  | 29,394 |
2023 | 34,840 |  |  | 29,982 |
2024 | 30,836 |  |  | 30,582 |
Thereafter | 142,526 |  |  | 1,805,048 |
Total future minimum lease payments | $ | 335,138 |  |  | $ | 1,952,077 |
Less amount representing interest |  |  | (1,611,816 | )
Net future minimum lease payments |  |  | $ | 340,261 |
The current portion of operating lease liabilities of approximately $35.7 million as of January 31, 2020 is recorded within accounts payables and accrued liabilities in the Consolidated Condensed Balance Sheet. Finance lease liabilities are recorded within long-term debt, net in the Consolidated Condensed Balance Sheets. The Canyons finance lease obligation represents the only material finance lease entered into by the Company as of January 31, 2020. As of January 31, 2020, the Company has recorded $122.7 million of finance lease ROU assets in connection with the Canyons lease, net of $60.9 million of accumulated amortization, which is included within property, plant and equipment in the Company’s Consolidated Condensed Balance Sheet.

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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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