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Leases (Notes) | 6 Months Ended
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Jan. 31, 2020
Leases [Abstract] |
Lessee, Operating Leases [Text Block] | Leases The Company leases certain manufacturing facilities, warehouses and office space, computer equipment, and vehicles accounted for as operating leases. Lease terms typically range from one year to fifteen years. As of January 31, 2020, the Company did not have any finance leases. The Company determines whether an arrangement contains a lease at contract inception. The contract is considered to contain a lease if it provides the Company with the right to direct the use of and the right to obtain substantially all of the economic benefits from an identified asset in exchange for consideration. The Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date based on the present value of the future lease payments over the expected lease term. Additionally, the ROU asset includes any lease payments made on or before the commencement date, initial direct costs incurred, and is reduced by any lease incentives received. Some of the Company’s leases include options to extend the lease agreement. The exercise of an extension is at the Company’s sole discretion. The majority of renewal options are not included in the calculation of ROU assets and liabilities as they are not reasonably certain to be exercised. Some of the Company's lease agreements include rental payments that are adjusted periodically for inflation or the change in an index or rate, which are considered to be variable lease payments. Due to the nature of the Company’s variable lease payments, they are generally excluded from the initial measurement of the ROU asset and lease liability and are recognized in the period in which the obligation for those payments is incurred. The Company has lease agreements that include both lease and non-lease components, which the Company has elected to account for as a single lease component. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Generally, the discount rate implicit within the Company’s leases cannot be readily determined, and therefore the Company uses its incremental borrowing rate to determine the present value of the future lease payments. The incremental borrowing rate is estimated based on the sovereign credit rating for the countries in which the Company has its largest operations, adjusted for several factors, such as internal credit spread, lease terms and other market information available at the lease commencement date. Operating leases are reflected in “Operating lease assets,” “Current operating lease liabilities,” and “Long-term operating lease liabilities” on the Company's condensed consolidated balance sheets. Short-term lease expense, variable lease expenses, and sublease income was immaterial to the condensed consolidated statements of income for the three and six months ended January 31, 2020. The following table summarizes lease expense recognized for the three and six months ended January 31, 2020:
|  |  | Three months ended |  | Six months ended
| Condensed Consolidated Statements of Income Location |  | January 31, 2020 |  | January 31, 2020
Operating lease cost | Cost of goods sold |  | $ | 2,092 |  |  | $ | 4,962 |
Operating lease cost | Selling, general, and administrative expenses |  | 2,182 |  |  | 4,716 |
The following table summarizes the maturity of the Company's lease liabilities as of January 31, 2020:
Years ended July 31, | Operating Leases
Remainder of 2020 | $ | 8,426 |
2021 | 15,780 |
2022 | 12,797 |
2023 | 9,427 |
2024 | 5,580 |
Thereafter | 3,268 |
Total lease payments | $ | 55,278 |
Less interest | (3,384 | )
Present value of lease liabilities | $ | 51,894 |
The weighted average remaining lease terms and discount rates for the Company's operating leases as of January 31, 2020 were as follows:
| January 31, 2020
Weighted average remaining lease term (in years) | 3.9 |
Weighted average discount rate | 3.4 | %
Supplemental cash flow information related to the Company's operating leases for the six months ended January 31, 2020, were as follows:
| Six months ended
| January 31, 2020
Operating cash outflows from operating leases | $ | 8,216 |
Operating lease assets obtained in exchange for new operating lease liabilities | 10,637 |
Operating lease assets obtained in exchange for new operating lease liabilities include $9,769 of operating lease assets related to leases that commenced on August 1, 2019, which were included in the adoption impact of the new lease accounting standard. The following table summarizes future minimum lease payments under operating leases as of July 31, 2019:
Years ended July 31, | Operating Leases
2020 | $ | 18,450 |
2021 | 16,132 |
2022 | 13,439 |
2023 | 10,065 |
2024 | 5,656 |
Thereafter | 3,502 |
Total lease payments | $ | 67,244 |

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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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