The Company’s lease portfolio is comprised of operating leases for office space and equipment and finance leases for equipment. Equipment leases are comprised of vehicles and office equipment. The majority of the Company’s leases include both lease and non-lease components. Non-lease components primarily include maintenance, insurance, taxes and other utilities. The Company has decided to combine fixed payments for non-lease components with its lease payments and account for them as a single lease component, which increases its ROU assets and lease liabilities. Some of the leases include one or more options to renew or terminate the lease at the Company’s discretion. Generally, the renewal and termination options are not included in the ROU assets and lease liabilities as they are not reasonably certain of exercise. The Company has elected not to recognize a ROU asset or lease liability for leases with an initial term of 12 months or less.

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of the future minimum lease payments. The Company applies the portfolio approach when determining the incremental borrowing rate since it has a centrally managed treasury function. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment.

Operating leases contain both office and equipment leases, have remaining terms that range from less than one year to 11 years, some of which also include options to extend or terminate the lease. Finance leases are comprised of equipment leases and have remaining terms that range from less than one year to 5 years. Finance lease assets are included in property and equipment, net while finance lease liabilities are included in other accrued liabilities and other liabilities.

As a result of the acquisition of the Acquired Companies, the Company recognized ROU assets of $3.2 million with a corresponding liability of $6.7 million. The ROU asset balance was adjusted by reclassification of pre-existing prepaid expenses, restructuring liabilities and deferred rent totaling $3.5 million. As part of the plan for integrating the Acquired Companies, the Company decided to exit 16 office leases and as a result, recorded an impairment charge of the ROU assets of $2.3 million recorded in the consolidated statements of income.

	Three Months Ended January 31, 2020			Nine Months Ended January 31, 2020
	(in thousands)
Finance lease cost
Amortization of ROU assets	$	467		$	1,410
Interest on lease liabilities		38			117
		505			1,527
Operating lease cost		15,035			43,428
Short-term lease cost		335			891
Variable lease cost		3,988			10,064
Lease impairment cost		2,282			2,282
Sublease income		(217	)		(324	)
Total lease cost	$	21,928		$	57,868

	Nine Months Ended January 31, 2020
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	47,040
Financing cash flows from finance leases	$	1,426

ROU assets obtained in exchange for lease obligations:
Operating leases	$	11,742
Finance leases	$	1,102

	January 31, 2020
	(in thousands)
Finance Leases:

Property and equipment, at cost	$	4,825
Accumulated depreciation		(1,367	)
Property and equipment, net	$	3,458

Other accrued liabilities	$	1,511
Other liabilities		1,996
Total finance lease liabilities	$	3,507

Weighted average remaining lease terms:
Operating leases	6.4 years
Finance leases	2.8 years

Weighted average discount rate:
Operating leases		4.8	%
Finance leases		4.1	%

Year Ending April 30,	Operating		Financing
	(in thousands)
2020 (excluding the nine months ended January 31, 2020)	$	15,993	$	456
2021		57,740		1,503
2022		50,324		1,052
2023		43,468		441
2024		40,464		206
Thereafter		77,370		48
Total lease payments		285,359		3,706
Less: imputed interest		37,558		199
Total	$	247,801	$	3,507