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Leases
 3 Months Ended
Jul. 31, 2023
Leases [Abstract]  
Leases 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 nine 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 three months ended July 31, 2023, the Company reduced its real estate footprint and as a result recorded an impairment charge of the ROU assets of $1.6 million in the consolidated statements of income. No impairment charge of the ROU assets was recorded during the three months ended July 31, 2022.
The components of lease expense were as follows:
Three Months Ended
July 31,
20232022
(in thousands)
Finance lease cost
Amortization of ROU assets$402 $373 
Interest on lease liabilities54 48 
456 421 
Operating lease cost11,697 12,415 
Short-term lease cost269 163 
Variable lease cost3,191 2,655 
Lease impairment cost1,629 — 
Sublease income(1,063)(507)
Total lease cost$16,179 $15,147 
Supplemental cash flow information related to leases was as follows:
Three Months Ended
July 31,
20232022
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$13,568 $15,513 
Financing cash flows from finance leases$382 $412 
ROU assets obtained in exchange for lease obligations:
Operating leases$1,219 $3,555 
Finance leases$447 $2,384 
Supplemental balance sheet information related to leases was as follows:
July 31, 2023April 30, 2023
(in thousands)
Finance Leases:
Property and equipment, at cost$7,674 $7,103 
Accumulated depreciation(3,169)(2,741)
Property and equipment, net$4,505 $4,362 
Other accrued liabilities$1,529 $1,372 
Other liabilities3,113 3,053 
Total finance lease liabilities$4,642 $4,425 
Weighted average remaining lease terms:
Operating leases4.3 years4.5 years
Finance leases3.6 years3.8 years
Weighted average discount rate:
Operating leases4.8 %4.5 %
Finance leases4.9 %4.7 %
Maturities of lease liabilities were as follows:
Year Ending April 30,OperatingFinancing
(in thousands)
2024 (excluding the three months ended July 31, 2023)$38,363 $1,325 
202544,632 1,484 
202640,132 1,089 
202721,304 689 
202810,370 467 
Thereafter16,211 — 
Total lease payments171,012 5,054 
Less: imputed interest16,389 412 
Total$154,623 $4,642 
Leases 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 nine 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 three months ended July 31, 2023, the Company reduced its real estate footprint and as a result recorded an impairment charge of the ROU assets of $1.6 million in the consolidated statements of income. No impairment charge of the ROU assets was recorded during the three months ended July 31, 2022.
The components of lease expense were as follows:
Three Months Ended
July 31,
20232022
(in thousands)
Finance lease cost
Amortization of ROU assets$402 $373 
Interest on lease liabilities54 48 
456 421 
Operating lease cost11,697 12,415 
Short-term lease cost269 163 
Variable lease cost3,191 2,655 
Lease impairment cost1,629 — 
Sublease income(1,063)(507)
Total lease cost$16,179 $15,147 
Supplemental cash flow information related to leases was as follows:
Three Months Ended
July 31,
20232022
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$13,568 $15,513 
Financing cash flows from finance leases$382 $412 
ROU assets obtained in exchange for lease obligations:
Operating leases$1,219 $3,555 
Finance leases$447 $2,384 
Supplemental balance sheet information related to leases was as follows:
July 31, 2023April 30, 2023
(in thousands)
Finance Leases:
Property and equipment, at cost$7,674 $7,103 
Accumulated depreciation(3,169)(2,741)
Property and equipment, net$4,505 $4,362 
Other accrued liabilities$1,529 $1,372 
Other liabilities3,113 3,053 
Total finance lease liabilities$4,642 $4,425 
Weighted average remaining lease terms:
Operating leases4.3 years4.5 years
Finance leases3.6 years3.8 years
Weighted average discount rate:
Operating leases4.8 %4.5 %
Finance leases4.9 %4.7 %
Maturities of lease liabilities were as follows:
Year Ending April 30,OperatingFinancing
(in thousands)
2024 (excluding the three months ended July 31, 2023)$38,363 $1,325 
202544,632 1,484 
202640,132 1,089 
202721,304 689 
202810,370 467 
Thereafter16,211 — 
Total lease payments171,012 5,054 
Less: imputed interest16,389 412 
Total$154,623 $4,642