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Leases | 6 Months Ended
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Oct. 31, 2021
Leases [Abstract] |
Leases | 13. Leases 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 combines fixed payments for non-lease components with its lease payments and accounts 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 the 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 and 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 five years. Finance lease assets are included in property and equipment, net while finance lease liabilities are included in other accrued liabilities and other liabilities. During the second quarter of fiscal 2022, the Company reduced its real estate footprint and as a result recorded an impairment charge of the ROU assets of $7.4 million recorded in the consolidated statements of operations. The components of lease expense were as follows:
|  | Three Months Ended October 31, |  |  | Six Months Ended October 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Finance lease cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of ROU assets |  | $ | 257 |  |  | $ | 317 |  |  | $ | 537 |  |  | $ | 655 |
Interest on lease liabilities |  |  | 21 |  |  |  | 30 |  |  |  | 45 |  |  |  | 61 |
|  |  | 278 |  |  |  | 347 |  |  |  | 582 |  |  |  | 716 |
Operating lease cost |  |  | 13,457 |  |  |  | 14,027 |  |  |  | 27,275 |  |  |  | 28,010 |
Short-term lease cost |  |  | 213 |  |  |  | 104 |  |  |  | 482 |  |  |  | 212 |
Variable lease cost |  |  | 3,431 |  |  |  | 2,785 |  |  |  | 5,099 |  |  |  | 5,192 |
Lease impairment cost |  |  | 7,392 |  |  |  | — |  |  |  | 7,392 |  |  |  | — |
Sublease income |  |  | (228 | ) |  |  | (195 | ) |  |  | (459 | ) |  |  | (275 | )
Total lease cost |  | $ | 24,543 |  |  | $ | 17,068 |  |  | $ | 40,371 |  |  | $ | 33,855 |
Supplemental cash flow information related to leases was as follows:
|  | Six Months Ended October 31, |
|  | 2021 |  |  | 2020 |
|  | (in thousands) |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 30,133 |  |  | $ | 32,321 |
Financing cash flows from finance leases |  | $ | 592 |  |  | $ | 664 |
ROU assets obtained in exchange for lease obligations: |  |  |  |  |  |  |  |
Operating leases |  | $ | 7,208 |  |  | $ | 6,000 |
Finance leases |  | $ | 317 |  |  | $ | 509 |
Supplemental balance sheet information related to leases was as follows:
|  | October 31, 2021 |  |  | April 30, 2021 |
|  | (in thousands) |
Finance Leases: |  |  |  |  |  |  |  |
Property and equipment, at cost |  | $ | 4,675 |  |  | $ | 4,801 |
Accumulated depreciation |  |  | (2,765 | ) |  |  | (2,590 | )
Property and equipment, net |  | $ | 1,910 |  |  | $ | 2,211 |
Other accrued liabilities |  | $ | 895 |  |  | $ | 1,010 |
Other liabilities |  |  | 1,094 |  |  |  | 1,301 |
Total finance lease liabilities |  | $ | 1,989 |  |  | $ | 2,311 |
Weighted average remaining lease terms: |  |  |  |  |  |  |  |
Operating leases |  | 4.7 years |  |  | 5.0 years |
Finance leases |  | 2.6 years |  |  | 2.7 years |
Weighted average discount rate: |  |  |  |  |  |  |  |
Operating leases |  |  | 4.7 | % |  |  | 4.8 | %
Finance leases |  |  | 3.9 | % |  |  | 4.2 | %
Maturities of lease liabilities were as follows:
Year Ending April 30, |  | Operating |  |  | Financing |
|  | (in thousands) |
2022 (excluding the six months ended October 31, 2021) |  | $ | 30,635 |  |  | $ | 499 |
2023 |  |  | 47,762 |  |  |  | 816 |
2024 |  |  | 40,837 |  |  |  | 528 |
2025 |  |  | 34,105 |  |  |  | 219 |
2026 |  |  | 29,435 |  |  |  | 21 |
Thereafter |  |  | 21,229 |  |  |  | — |
Total lease payments |  |  | 204,003 |  |  |  | 2,083 |
Less: imputed interest |  |  | 21,522 |  |  |  | 94 |
Total |  | $ | 182,481 |  |  | $ | 1,989 |

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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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